U.S. Dollar returns to positive momentum

Unfortunately, the Strait of Hormuz witnessed a pickup in attacks over tanker vessels only exacerbating concerns over oil supplies and the negative effects over the global market. Naturally, risk appetite has faded as equity exchanges all experienced a downward turn. Meanwhile, some investors are wondering if they can only forward to earnings reports to see if enthusiasm for artificial intelligence can be sustainable amid turmoil macroeconomically.

According to the Bloomberg Dollar Spot Index, the Buck has been on a winning streak of 3.2% since September 9th. There are chances for some volatility later this afternoon as we get a chance to look at Fed Minutes from the last meeting. Ever since the unanimous vote to lift interest rates for the first time in three years, the U.S. Dollar strengthened by 2.3%. As troubles plague European countries and tensions remain heated across the Persian region, there is no escape but to look for the security of USD-denominated assets.You can read our thoughts on the outlook for October.

What to Watch This Week…

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EUR

The Euro fell to fresh new low, now hovering around its weakest level against the Buck since May 2025 as the situation in the Euro-zone countries remains fragile. Investors are growing only more concerned day by day that the fiscal difficulties of France in particular will lead to a political crisis. At the moment, incumbent leadership in France as well as Germany and Spain are facing tough enough opposition that there is gridlock as well as growing dissatisfaction amongst constituents. With France scheduled to have presidential elections in six months, the outlook is doom-&-gloom unless something changes with energy access as well as employment. The gap between the French treasury bond and the German “bund” is now the largest since the 2011 debt crisis.

MXN

The Mexican Peso is weakened while moving close to trading near its lowest value against the U.S. Dollar since November of last year. Productivity seems to be having a slowdown after September Vehicle Production & Exports came in lower than the month prior. Tomorrow, we will get a chance to look at inflation in the form of consumer Price Index from last month. The Minutes from Banxico last monetary policy meeting will also be released. The current benchmark interest rate remains unchanged at 6.5% so attention will be paid to notes regarding any willingness to hike or move borrowing costs at all.