The U.S. Dollar is trading in familiar ranges following a week of more progress on the COVID battlefront while still waiting for a resolution to the rescue package bill negotiations.
Overview
Global markets are attempting a comeback from the turmoil that kept record rallies from continuing. Energy costs continue to improve along with commodities, but there is concern about how sustainable the recovery is and if central banks need to be concerned with rising yields suggesting stronger-than-desired inflation. Authorities such as Fed’s Jerome Powell have tried to talk down any worries as he feels it is natural in this pandemic recovery to see everything rise faster than typically aligned.
Data-wise we will be seeing ISM Manufacturing figures for February at 10 AM along with January Construction Spending which should be positive. We will also watch for any progress in Congress while we see if other cities such as Miami announce plans to offer BitCoin as a way to pay, thus giving the cryptocurrency further legitimacy as an asset and medium of exchange.
What to Watch Today…
- Construction Spending 10 AM
- ISM Manufacturing 10 AM
EUR ⇑
The Euro moved around in February as the continent made progress in the planning and distribution of vaccines, allowing for countries to ease some of the lockdown measures as the condition starts receding. This morning we got a glimpse of February Markit Manufacturing, which did expand more than expected and helps paint a rosier economic picture for Q1.
We will get inflation in the form of Consumer Price Index on Tuesday, Producers Price Index Wednesday, and Unemployment as well as Retail Sales on Thursday. Any indication of a stable recovery or better-than-expected will certainly help Euro keep its gains. Meanwhile, the central bank could announce plans to help the economy while monitoring newer markets like crypto.
GBP ⇑
The Pound rose rapidly in February and we shall see if there is actually any room left for appreciation after an announcement to keep taxes low. Indeed, the Chancellor of the Exchequer, Rishi Sunak, explained that there will be no tax hikes that could dent the recovery. We will get Purchasing Managers Index figures tomorrow and will watch out for any news items related to the need for London to get a financial services pact with the EU.
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