A bit of optimism that has driven risk-appetite while the S&P 500 Index touched a new all-time record has made for an interesting week in equities while FX moves have been rather inconsistent and tilted now against the Buck. The effect has been wide for a variety of currencies with the MSCI Emerging-Markets Currency Index now back up to its highest point against the U.S. Dollar since the beginning of March. This all comes as a result of calm amongst investors who have cheered technology earnings news while leaving war concerns to the wayside.

Additionally, this week has been characterized by progress surrounding peace possibilities in the Middle East with the latest being comments from the U.S. President that Iran has agreed to some “key concessions” in talks. Additionally, yesterday it was announced that Israel and Lebanon would enter a temporary truce. As a whole, seems like things have turned against what was once a strengthening “Petro-Dollar” while now focus is on growth even in the midst of friction, conflict and damage to trade.

What to Watch This Week…

The complete Economic Calendar can be found here.

EUR ⇑

The Euro hit its best level since the end of February and is climbing as the week comes to an end with positivity ahead of the weekend. Inflationary concerns have made for “hawkish” sentiment to be shared within the voting members of the European Central Bank. Before meeting on April 30th, the narrative about price-growth and worries over the effects, short as well as long-term, on energy costs, seems to indicate a willingness to hike interest rates as a way to combat them. While an end-of-April rise in borrowing costs would be surprising, chances are almost guaranteed that it will arrive by June 11th.

CAD ⇑

The Canadian Dollar is also appreciating as are other peers, climbing now to its highest value over USD since mid-March. Next week will be a test of that jump for the “Loonie” with key data coming the form of Consumer Price Index on Monday as well as important Bank-of-Canada surveys for business confidence and outlook. Industrial Production and Retail Sales will also c\be scheduled toward the end of the week. Although most headlines clearly are about Middle-East worries and developments, the negotiations to come over the USMCA trade pact will be imperative as talk this week already has pointed at the U.S. administration looking to return to use tariffs.