Update from North America

Buck holds on to value, Emerging-Market FX down bigly

2 min read

The U.S. dollar is mostly unchanged across the board, holding its value as a few developments keep all markets on edge.

Stock futures look positive for U.S. stocks after impressive SpaceX figures that eased risk aversion that was starting to gain momentum in different exchanges. With investors at ease for now, traders are monitoring what could materialize from a meeting between Russian President Vladimir Putin and U.S. envoy Steve Witkoff in St. Petersburg, Russia. This follows reportedly productive talks in Oslo, Norway. There is potential for direct discussions with the U.S. president and other leaders at next month’s Asia-Pacific Economic Cooperation Forum. Any ceasefire or resolution to armed conflicts could help global markets and prevent the U.S. dollar from strengthening.

With no economic data scheduled until tomorrow, when initial jobless claims for last week will be released, FX flows seem to be at the mercy of headlines. There could be plenty of volatility as geopolitical narratives keep shifting ahead of midterm elections in the U.S. and the second round of Brazil’s presidential election; however, conditions are currently fairly quiet. On Friday, we will get the Purchasing Managers’ Index as well as consumer sentiment indicators for the month.

What to Watch This Week…

The complete Economic Calendar can be found here.

EUR

The euro remains weak even as the situation on the other side of the pond has calmed somewhat while leaders vow to address the concerns of students and workers. There is little else to assess beyond how the larger eurozone economies will handle political upheaval while also pursuing diplomatic solutions to conflicts affecting supply chains. Since the start of September, the shared currency has lost over 3.1% of its value as negative factors and the Federal Reserve’s increasingly hawkish stance have weighed on its trajectory.

MXN

The Mexican peso is down by almost half of a percent as emerging-market currencies in general are suffering from disruptions to energy markets and trade. Although retail sales data showed better results than anticipated, the currency is dampened by a sense of disinterest as capital is directed toward technology stocks. In the “peso brotherhood,” the Philippine peso (PHP) depreciated to an all-time low. The currency has been hitting new lows throughout the year amid economic pressures from tariffs and the effects of rising costs across products.