Buck steady as trouble hits tech firms
The U.S. Dollar is trading in mostly familiar ranges following the observance of the Veterans Day holiday and a rebound in global risk appetite following scandals that rocked one of tech’s biggest firms.
Indeed, controversy over leadership at Nvidia, a major driver of stock growth in recent years, is making investors nervous that a major shake-up may be necessary as concern and scrutiny over the company’s future only increases.
Nvidia’s share value is already down 7.6% in pre-market trading. Meanwhile, a few of its rivals picked up steam while Asian exchanges declined further. In general, there is a bit of fear in the artificial intelligence ecosystem, so developments, as well as nervousness in equities may keep the U.S. Dollar afloat.
As activity ramps up post-holiday midweek, we will get the release of the 4-week average for Initial Jobless Claims at 8:30 AM and Existing Home Sales for October later at 10 AM. Tomorrow, we close out the week with inflation in the form of Producer Price Index from last month. Any reports of easing of tensions between the U.S. and Iran may move the needle with potential, once again, for a clearer path towards a peaceful resolution. For now, the Buck continues to trade at its strongest level overall since mid-May 2025, according to the Bloomberg Dollar Spot Index.
What to Watch This Week…
- Euro-zone GDP, Friday
- Monex USA Online is always open
The complete Economic Calendar can be found here.
EUR
The Euro is hovering around its weakest levels since the summer of last year as a round of risk-aversion has taken the market while fundamentals out of the U.S. have impressed. In contrast, European growth figures have not been showing signs of overcoming the stagnation, but tomorrow there is a chance for countering that narrative. Q3 Gross Domestic Product is expected to show an expansion of 0.4% with annual growth at 1.3%. If figures disappoint, expect the Euro to crumble; however, anything above the estimate will be good for a resurgence. More numbers for the euro-zone for September and last month will come out next week.
MXN
The Mexican Peso is just about half a percent away from where it was when November began, weakening in recent days in contrast to the resilience shown after central bank loosening. Banxico’s central bank officials decided to cut interest rates by 25 basis points, but their notes on the commitment to keeping that rate unchanged for a while signaled “hawkishness,” making it a confident reduction. Nevertheless, things have lined up for USD strengthening, especially as it looks like the Fed will be prudent in raising interest rates in December.