Daily Market Update

U.S. Stays Mostly Put as Other Markets Rally 

April 19, 2018

The U.S. Dollar is trading in mixed, yet tight ranges, following underwhelming data in Europe and the U.K.

USD

Equities and commodity markets are up as a new wave of risk-appetite has taken the global markets. International overall growth is set to reach 3.9%, per the IMF, this year. Safe-haven assets have been losing ground while resource–based currencies are climbing.

Bond yields are also up for European and British commodities, especially the German ones which experienced their biggest increment in value in 10 weeks. Positivity remains around European assets with speculation over higher rates and growth in the continent.

Nevertheless, the greenback is not sinking either, as upward swings benefitted yesterday. It’s just the swings. Purchasing Managers Index figures come out tomorrow gauging services and manufacturing activity, a possible potential boost for the buck.

 

MXN

Our neighbors have also been dancing all over. The Mexican Peso is down by half a percent today based on profit-taking once the Peso surged last week with oil and commodities rising in price. We must include also that the Canadian Dollar has been helped as well, but saw a break from its surge yesterday after the Bank of Canada kept interest rates unchanged and did not upgrade any outlook on growth.

NAFTA progress is reported to be ongoing as negotiations have been held in private, but it is clear concerns over its demise have faded. The “loonie” is now up 2.7% for April thus far.

 

GBP

The Pound is up slightly after dropping by over half a percent yesterday based on under-performing indicators measuring inflation as well as Retail Sales. March Sales contracted by (-0.5%), exceeding the gloomy expectation of (-0.4%). However, things are looking to remain positive for Pound long-term as most economists foresee the Bank of England raising rates regardless.

 

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