The U.S. Dollar is mostly unchanged with Sterling being the exception as it rises based on Brexit uncertainty.
On Friday, drama between the EU and Prime Minister Theresa May caused Pound to lose, but it is on the recovery mode as markets digest May’s proposals and one written and presented by rebel Tories in her conservative party. Movements against the majors, particularly the Euro and Pound, have caused the buck to be trading around its weakest levels since July.
We have plenty to observe this week, just not today as we keep absorbing trade-tension articles. New Home Sales, Durable Goods Orders, Gross Domestic Product and Income figures will wield some influence this week. Additionally, the Fed, which could hike, will be the main risk-event towards dollar guidance.
The Euro keeps its positive trend as European Central Bank officials push hawkish agenda. ECB President Mario Draghi said that inflation is certainly growing at a better-than-expected level. As of right now, the shared currency is also benefitting from the issues related to the U.S.-China trade impasse. Consumer Price Index figures on Thursday and Consumer confidence may further solidify the Euro’s ascendance.
The Pound is up as the trade concerns in the U.S.-China situation make Brexit take a back-seat. While it’s clear that U.K. politics have been mostly gridlocked around Brexit, the issues with China do open up possibilities of future trade for the U.K. Asian markets could open up to a suddenly-willing Britain. The swings are part of the anxiety and uncertainty, so any issues related to acceptance of terms or the return to a no-deal possibility can get rid of recent gains.