The U.S. Dollar has fallen in anticipation of data that could reveal enough of a slowdown to convince the Fed of putting plans to slow down their tightening.
Overview
Indeed, the buck’s swings continue as global markets seek for a reason to tumble the greenback from record highs that are making things in other countries even more expensive. Construction gauges, Manufacturing as well as New Orders will be coming out at 10 AM. Tomorrow, the Fed and their broadcasted message will be on at 2 PM. Speculation is that tomorrow a 75-basis-points hike will arrive tomorrow, but that future pace will slow down.Outside of America, elections in Brazil and the need for physical commodities to make it through the northern hemisphere winter have made Brazilian Real and other Emerging-Market currencies more attractive. Lula took the presidency from incumbent Bolsonaro over weekend elections, but the latter has yet to accept the result or speak on it. We shall see if there is turmoil to come or peace as the energy giant tries to find stability.
What to Watch Today…
- No major economic events are scheduled for today
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EUR ⇑
The Euro is climbing as the day looks to carry a dollar-negative narrative. Although Europe has issues to deal with as turmoil from the energy crisis remains, the good news could come from Asia and revive trading without limits. China has not made any announcements, but word is that the government is looking to end its Zero-COVID policy that has dragged the global economy for years.
Post-pandemic havoc has been exacerbated by China’s refusal to fully open to all activity. We shall see how much this inflicts pain on the buck, whose strength has not been matched regardless of China’s influence.
GBP ⇑
Sterling climbed significantly following news of a new government plan to shore up revenue after years of losses in tax collection from loss activity as well as business. Spending and stimulus packages have made many national accounts poorer, which means a return to higher taxes must be put in place.
Rishi Sunak, the new Prime Minister, and his Chancellor of the Exchequer Jeremy Hunt announced plans to raise taxes, particularly on high-income earners. It is possible for Sterling to find more room to recover if the Bank of England sticks to its tightening path this week.
