U.S. Dollar positive after turbulent week
The U.S. Dollar is trading in mostly stronger ranges this morning as the focus remains on geopolitical tensions and stock markets hitting the brakes after nearly reaching record highs.
With earnings and some major data prints already in the rearview mirror, all eyes will be on gauging inflation and how consumers feel about their overall situation. Over the weekend, no progress was made toward an agreement that would ensure a ceasefire, as well as conditions for traffic through the world’s most crucial energy chokepoint, the Strait of Hormuz. Oil and energy prices are once again on the rise, while all other FX lost momentum after gaining ground against the Buck last week.
On Wednesday, we will get important Consumer Price Index figures for July, which are expected to record an expansion of 0.1% after contracting (-0.4%) the month prior. Thursday will follow with supply-side price growth as we look at the Producer Price Index. To end the week, we will have a chance to review Retail Sales and responses to the University of Michigan Consumer Sentiment survey.
What to Watch This Week…
- Euro-zone GDP, Friday
- US CPI on Wednesday, 8:30 AM
- USA Online is always open
The complete Economic Calendar can be found here.
EUR
The Euro is trading at the exact same level as when August began, but it has improved by 1.7% against the Buck since July 28. The resurgence is due to several factors, including Fed “dovishness,” which is clearly negative for the U.S. dollar, as well as some resilience in economic indicators despite awful headlines and shifting narratives regarding the Middle East. One survey of investors, the Sentix Investor Confidence Index, revealed a surprisingly positive response that exceeded expectations for continued negativity about the financial environment. This comes ahead of key figures to be released toward the end of the week, with Industrial Production for June out on Thursday, while Q2 Gross Domestic Product and the Employment Situation come out on Friday.