The U.S. Dollar is trading in mixed ranges, finding itself weak against majors such as Euro and Pound, but in steadier levels across the board.
Trade concerns may take a break today as President Donald Trump is expected to speak at the United Nations at 10:15AM and the Fed is scheduled for tomorrow afternoon. The greenback benefitted from 10-year treasury bonds climbing to 3.1%.
We have Consumer Sentiment scheduled at 10AM right before the President’s address to the UN General Assembly. Although it has not caused much turbulence in FX markets, it should be noted that Sweden’s parliament ousted Prime Minister Stefan Lofven in a vote. Recent elections came as a surprise with the establishment losing seats and anti-EU right-wingers taking a major hold of parliament.
The Euro is still moving around its best levels against the buck in three months based on confidence by European Central Bank officials. No matter what headlines out of Italy or doubts over trade, many economists point to the end of quantitative easing and a solid pace of growth as factors worth pushing the value of Euro up.
Nevertheless, political pressures in Germany, Sweden and other member nations on the periphery are cause for long-term concern. The European Union depends on cohesiveness and nationalist groups trying to close borders does not bode well for a prosperous or peaceful future. The shared currency is on its way up for now as the greenback dwindles with other anxieties.
The Pound remains strong as steadying around its best levels since the beginning of July. Prime Minister Theresa May is still facing challenges back in the U.K., but the EU wants to move forward and delaying the deadline for an initial deal out to November will give the PM some time to negotiate.
The summit in Salzburg last week concluded that indeed all parties involved in negotiations are exhausted and would like some sort of framework at least agreed upon soon. In the U.K., the media and politicians are openly discussing the chances for a second referendum on the “Leave” question, which would be to reverse the process Brexit sparked.