The U.S. Dollar is trading in weakened ranges after a tumultuous March that saw it lose 1.2% of its value overall against its ten major counterparts.
Indeed the Bloomberg Dollar Spot Index faced yet another month of losses, marking a downward streak of four months and adding to a decline of 3.1% thus far in 2018.
The greenback has faced multiple challenges in the face of trade conflicts and doubts over economic growth after some policy changes. Nevertheless, the swings are wild and the buck has prevented even deeper losses with short-lived rallies.
We have some Manufacturing and Construction data out today, but the flow of fluctuations may be quiet since many countries are still out on holiday. Chinese-American relations are a bit tense on the commercial front starting this week with the implementation of tariffs on pork goods from the U.S. into China. Trade will remain the biggest concern for the next few weeks as April sees little action in terms of central bank activity.
The Euro is moving in a tight band along with other European currencies since our friends on the other side of the Atlantic remain in celebratory mode. Plenty of manufacturing figures could rattle markets as the week develops.
The Mexican Peso rose by 3.3% in March following hawkish action from the central bank as well as renewed faith in the economy despite some concerns. Politics may dictate the Peso’s flows this next quarter as we prepare to monitor the last phase of the presidential campaign leading to a vote on July 1st. Although a leftist and somewhat anti-establishment candidate is leading the polls, fears of economic doom are subsiding and threats to NAFTA, as a direct one overnight from President Trump, are starting to be deflected for now.