The U.S. dollar opens this morning modestly stronger from last night’s close and has extended its modest gains in early trading.
Overview
The greenback has also clawed back some of its losses versus the safe-haven Swiss franc and Japanese yen as the risk mood has brightened after two days of sell-offs. Despite threats from Iran that their retaliation would be a “historic nightmare” from the U.S., a number analysts are now predicting there will not be a major escalation in the region. We hope they are correct.
Service data and factory orders will be released later today. ADP private jobs data will cross the wire on Wednesday followed by non-farm payrolls on Friday.
What to Watch Today…
- Factory Orders at 10 a.m.
Complete Economic Calendar can be found here.
EUR
The Euro dipped against the U.S. dollar despite decent data out of the region. Eurozone inflation data met estimates, rising to 1.3% year-over-year. However, the core reading that strips out the price of oil showed little inflation. A separate report showed that retail sales beat forecasts.
AUD
The Australian dollar was the biggest loser overnight, falling over a percent versus the U.S. dollar. The large brushfires in Australia are likely to have noticeable negative impact on the Australian economy, which increases the odds of a rate cut by the Reserve Bank of Australia.
AUD/USD is now at the lowest level in a month.
