The U.S. dollar crept slightly higher versus the Euro overnight but was mostly quiet against the rest of its major rivals. Geopolitical events abroad, including the beginning of Brexit negotiations and French elections, has dictated trade so far this week.
On our side of the pond, economic data releases will be sparse. However, there are a number of Fed speakers on this week’s slate that will keep traders on their toes. Last week, the Federal Reserve boosted interest rates by a quarter of a percent and Fed Chair Janet Yellen held a slightly hawkish tone in her press conference following the decision. This week’s speakers will either bolster the Fed’s hawkish stance and boost the dollar, or slightly contradict Yellen and put the greenback in limbo. At the time of writing, the Fed’s Dudley is speaking on a round table event in Plattsburg, New York. Evans will be speaking in New York City tonight.
The Euro experienced some choppy ranges in early trading last night but has opened our session slightly lower. European stocks shot higher, led by French equities as new French Prime Minister Emanuel Macron secured a healthy majority in parliament.
Similar to the U.S., there are no major economic releases this week.
The British pound was unmoved overnight but there was plenty of action in Britain. After about a year after the “Brexit” result, negotiations have begun today. The word “confusion” can be seen over and over in articles describing the beginning of the negotiations. The Conservative’s recent electoral set back has added to the uncertainty. We expect new to trickle out slowly over the coming months.
Bank of England Governor Mark Carney will give a speech at the Mansion House tomorrow. Last week, the Bank voted to keep interest rates unchanged. However, there appears to be a growing split among policy makers as three voted to increase rates as inflation ticks higher.