Daily Market Update

U.S. Dollar Settling in Ranges After 2-Week Advancement

November 09, 2017

The U.S. Dollar is trading in choppy ranges this morning after major counterparts mounted a slight comeback overnight that is fading this morning.

USD

The European Commission upgraded its economic forecasts, which led to Euro appreciation that is now reversing. Naturally, many traders expected European stocks to gain steam, but this was short-lived and the greenback is strengthening as a safe-haven. Other markets, such as metals have also seen a loss in prices that have aided the world’s most traded tender.

Currently, the buck is fluctuating around its weakest level in 2 weeks after surging based on good economic data. Focus for what’s left of this week will be on headlines emanating from President Donald Trump’s trip in Asia. Tempus, Inc. will be open to serve on Friday and Monday sandwiching in the Veterans Day holiday.

 

EUR

The Euro is trying to get away from its weakest levels in five months, but even an optimistic survey from the European Commission failed to propel the currency. Growth in the Euro-zone is predicted to stay at a healthy pace, but the lack of interest rate increments in comparison to the U.S. Fed keeps the shared currency humbled.

It is likely that inflationary data next week will be the most closely watched statistic that could have any impact. The German Trade balance showed a surplus, which initially boosted the Euro, but the rally did not last. There is potential for some profit-taking on dollar positions and it could provide reprieve for Euro if it materializes.

 

GBP

Sterling is again being held back by the political drama that has ensued over Brexit and the atrocious state of Prime Minster Theresa May’s administration. In a matter of two weeks, two cabinet members have been involved in career-ending situations. More importantly, the Royal Institute of chartered Surveyors released their report on a decline in consumer confidence as members opined on every aspect of the economy from housing to employment, key issues as Brexit talks struggle to reach resolution.

In fact, negotiations have resumed, but there is now a three-week deadline set by the EU for UK officials to establish how much they will pay in final bill. Pound is vulnerable to further losses as a result.

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