The U.S. Dollar is trading in tight ranges following little action overnight.
Last week, commentary from various central bankers set the tone for an improved Dollar overall as they claimed the fight against inflation is not over, and neither is the will to exercise tightening measures as we get ready for what is to come in 2024.
Globally speaking, geopolitical affairs will take some priority this week as the United States President meets China’s counterpart Xi Jinping on Wednesday. The two parties are hoping to reestablish military communication and information sharing after years of tension and deterioration of cooperation between the two largest economies as well as military powers. Meanwhile, Emerging Markets, particularly LATAM will give us Gross Domestic Product figures to gauge end-of-year progress.
There will be key data items to watch out for during the week with inflation in the form of the Consumer Price Index on Tuesday, Retail Sales on Wednesday, Jobless Claims on Thursday, and Housing Starts on Friday. There will be some banks and economists chiming in on the Fed outlook so we will watch for headlines affecting flows.
What to Watch Today…
- US CPI Tuesday
- UK CPI Wednesday
- Biden-Xi meet Wednesday
- ECB Lagarde speaks on Friday
- Monex USA Online is always open
The Euro dropped last week after starting the month with gains based on concern about the European economy as well as the potential for further borrowing costs out of the U.S. In general, data out of Europe has shown inconsistent expansionary improvement, thus making economists wonder about more serious recessionary pressures to develop in 2024. European Central Bank Vice President Luis De Guindos, explained earlier today that the ECB has done a good job fighting inflation and that all banks should be cautious and maintain buffers in case of an emergency. We will hear from ECB President Christine Lagarde on Friday.
Sterling is holding steady after a week of statements and revelation of no recession. GDP numbers showed that GDP advanced 0.2% for the month of September when no growth was estimated. Meanwhile, Industrial Production is higher on average for the year at 1.5% from 1.3%. We will get more indicators on Wednesday including UK CPI.