U.S. Dollar slightly down against all but Euro
The U.S. Dollar is trading in mixed ranges as global markets try to shake off the pessimism from last week while concerns over political stability in Europe intensified.
A tough weekend that featured violence in the streets of Paris and other major French cities as hundreds of thousands joining national protests has many wondering if there will be a need for rapid changes in leadership. Naturally, this has added negative pressure on the Euro’s value while other peers are doing the opposite and gaining ground against the U.S. Dollar.
Energy markets, which have been a part of the pain experienced across European economies, remain on edge after Saturday's comments from the U.S. President and Secretary of State that waiving Russian oil sanctions was still being weighed as an option. This development left traders wondering if there indeed will be a 60-day period of assessment after backlash from many sides over the idea. Domestically, this week will be light on data with the S&P Global U.S. Composite Purchasing Managers Index for October being the main item to watch. On Friday, PMI will also come out at 9:45 AM right before the 10:00 AM release of the University of Michigan’s final survey on sentiment and current conditions.
What to Watch This Week…
- Housing Starts, Tuesday, 8:30AM
- U.S. PMIs, Euro-zone PMIs on Friday
- Monex USA Online is always open
The complete Economic Calendar can be found here.
EUR
The single currency, after taking heavy losses against USD to open this year, is attempting to claw back some ground this morning and has gained just shy of a quarter of a percent against USD. The EUR/USD pair is now sitting much closer to prices last seen just before both the Fed and ECB meetings last month, more in line with the macroeconomic data out of the region. French CPI this morning showed inflation increased 4.1% annually, with Germany’s year-over-year inflation slightly lower at 3.8%.
MXN
The Mexican Peso is mostly flat at the moment but continues to weaken in October. A bit of negativity over USMCA pact negotiations has clouded MXN a bit, but for now the focus will be on central bank policy and if changes to armed conflict can bring alleviation across global markets. Recent notes from Banxico officials indicated that a few voting members would consider it appropriate to return to cutting interest rates if inflationary conditions were eased. We will get October consumer price index numbers on Thursday, which may move the needle.