U.S. Dollar tumbles to 3-month low
The U.S. Dollar is trading in unfavorable ranges, having touched its weakest point in three months amid enthusiasm for tech stocks fueling risk appetite while diplomatic efforts in the Middle East stall.
A report from artificial intelligence-leading firm Anthropic PBC boosted advances in equities, with the American Nasdaq 100 and S&P 500 index futures jumping ahead of Monday’s U.S. trading session. Described as “stellar,” the firm’s revenue generation is strong enough to convince investors that A.I.-related investments will keep going. Without much in the way of significant data figures for the week, markets may be mostly driven by headlines, particularly regarding progress, or lack thereof, in talks to bring the armed conflict to a halt.
Fighting over the weekend between Israel and Hezbollah, an Iran-backed militia, exacerbated energy concerns, with Brent crude oil prices rising above $90.00 per barrel. Furthermore, traffic through the crucial Strait of Hormuz slowed as a result of attacks on tankers. U.S. officials vowed to add more economic pressure on Tehran to force it into a deal that could end the war. We shall see how the narrative develops this week as we approach the six-month mark. Domestic data-wise, there will be some items to watch, such as tomorrow’s Industrial Production for July, the Fed meeting minutes out Wednesday, and Purchasing Managers’ Index numbers for August out Friday.
What to Watch This Week…
- Industrial Production, Tuesday, 9:15AM
- S&P Global PMIs, Friday, 9:15AM
- USA Online is always open
The complete Economic Calendar can be found here.
EUR
The Euro is currently hovering around its strongest level against the Buck since June 15th, gaining some momentum as risk appetite improves. Last week showed that the Eurozone overall is advancing in terms of growth, showing signs of resilience after worries at the end of Q1 that the effects of armed conflict could prevent economic improvement. While costs remain high, the Ancient Continent remains productive. Tomorrow, we will get the ZEW Survey on expectations for the month, while on Wednesday we will look at inflation with the Consumer Price Index for July. The end of the week will be characterized by PMI figures here and across the Atlantic.
MXN
The Mexican Peso continues to strengthen and is now trading at its strongest value against the U.S. Dollar since the end of May 2024. This week will be light compared with next week in terms of data points, with only the Banxico meeting minutes out Thursday and Retail Sales from June released on Friday, while next Monday starts heavy with Gross Domestic Product for Q2 and CPI indicators for August. Thus far, since the beginning of July, the “Super Peso” has climbed by 3.2% in value.