The U.S. Dollar is weak, at a one-month low overall, and in route to having its worst yearly performance in 14 years.
Speculation over the effects of monetary tightening around the globe in 2018 and a lack of faith in the “buck” in general is helping its main counterparts.
This is all happening despite good data in the form of Retail and Wholesale Inventories, which not only expanded more than expected, but also redeemed themselves from contractions in the month prior. Also, Jobless Claims remain low and the labor sector is as solid as ever.
Europe’s markets are very quiet as predicted, but the Euro rallied to its best level in over three months. Unlike the last few years, the dollar is not finishing strong, instead giving way to the shared currency, which most traders agree deserves its recent climb based on the disappearance of most downside political risks and consistent economic performance.
The Pound remains resilient defying the negativity surrounding Brexit trade deal talks and the fact that more than half of British consumers spent 50.0% less during Christmas than a year ago. Uncertainty, dips in consumption, and the potential flight of companies from the U.K. to EU havens have failed to scare people away from Sterling.