The U.S. dollar is mostly unchanged from Friday’s close against the majority of its counterparts.
The greenback was unable to take advantage of a strong jobs report on Friday, but the U.S. Dollar Index was able to close the weak modestly higher for the third straight week. The U.S. economy added 313K jobs in February, beating forecasts by over 100K. Perhaps, the dollar’s rally was stunted by a breakdown of the number that showed wage growth that barely missed forecasts.
The economic docket for the week is a busy, but there is no major data slated for today. The Consumer Price Index will be released on Tuesday, followed by retail sales on Wednesday. Empire state manufacturing will cross the wires on Thursday, while JOLTS and Consumer sentiment will round out the week on Friday.
Traders will also keep a close eye on geopolitical developments. A South Korean delegation made a surprise announcement at the White House late Friday that President Donald Trump has agreed to meet with the North Korean leader. The unorthodox decision has some diplomats scratching their heads. Others believe a meeting will not actually take place. Either way, rhetoric and posturing in the coming days will affect markets so we will be watching closely.
The Japanese yen has outpaced its counterparts in early trading on lower Japanese stocks amid a potential political scandal. While world markets were generally higher, the Nikkei is down modestly. Japanese Finance Minister Taro Aso has come under renewed pressure thanks to a controversial land deal. If Taro falls, it would put pressure on Prime Minister Shinzo Abe and “Abenomics”. This story may end up being a blip on the screen but yen traders will follow it closely.
The British pound was quiet overnight but that could change as early as tomorrow. Chancellor Phillip Hammond is scheduled to give his Spring budget statement tomorrow. Traders are expecting Hammond to announce a cut to borrowing as make tweaks to economic and revenue forecasts. Analysts, however, point out that the biggest changes to the budget are not likely until the Autumn budget.
There is no major economic data scheduled for release this week in the U.K.