The U.S. Dollar is dominating across the board based on re-adjustment and reaction to the U.S. sanctions against giant Chinese communications company Huawei.
The trade conflict taking place between the two largest economies of the globe and involving products that are used all around the world such as cellphones, most certainly has thrown a monkey wrench into the world economy and the dynamics of supply chain management. Naturally, the buck has strengthened since now the chaos is harder to decipher and untangle.
More data scheduled for this week should give us a glimpse into how the fundamentals are doing and perhaps get away from headlines. Lies, headlines regarding the future of many trade fronts will be what moves markets. Nevertheless, we shall monitor Purchasing Managers Index on Thursday and Durable Goods Orders on Friday. Tomorrow, we will see if any details within the FOMC Minutes show anything that was not obvious when the Fed made its decision to stay put at their last meeting.
What to Watch Today…
- FOMC MINUTES 2PM
- THERESA MAY SPEAKS 11AM
The Euro is trading at its weakest level since the end of April, primarily unable to rise regardless of good signs that the economy is healthier than thought. We shall see if Consumer Confidence comes out of negative territory or at least rises from the (-7.7) reading it had last month.
Europeans have not shown overall positive confidence in a year. Any surge for Euro will come with a combination of solid economic figures added to easier-to-digest trade deadlines.
The Pound is not finding any reprieve as news keep pouring out of the U.K. that place the country in a bad situation ahead of end-of-May EU Parliament elections. Nigel Farage, the leader of the Brexit/Independence Party, may have gotten hit with a milkshake on the streets, but within government walls he is hitting politicians with an ugly truth: his party might have more representation than traditional parties in the EU parliament at the end of the month.
The prospect of an aggressive approach towards a no-deal is panicking business leaders who have already voiced despair over how this all has been handled, and it could get worse. Talks of Scottish Independence and a special designation for London are now back on with many thinking that remaining will not happen unless there is a second referendum. Prime Minister Theresa May will speak at 11AM to pitch her final deal version to Parliament.