The U.S. dollar gained a bit overnight, marking its first gain in five days. However, the gains were short-lived.
This week could prove pivotal in the prolonged trade war between the U.S. and China. A delegation of Chinese officials will make their way to Washington on Thursday but there seems to still be some disconnect between the two sides and what they hope to accomplish. China is reportedly reluctant to come to terms with a wide-spread deal that President Trump prefers. If the past is prologue, we will not be holding our breath for a major breakthrough this week.
The economic docket is empty this morning. Federal Reserve Bank of Minneapolis President Kashari will take part in a discussion about Fed’s work on Native American reservations but may speak about his dovish take on monetary policy. A slow news day indeed. Things will pick up tomorrow with the release of the producer price index and a speech by Fed President Jerome Powell, followed by the minutes of the latest Fed meeting on Wednesday.
What to Watch Today…
- No major events scheduled for today.
Complete Economic Calendar can be found here.
The Euro briefly tanked overnight before rebounding nicely. The common currency came under pressure after yet another warning sign from the region’s largest economy. German factory orders fell, a week after German manufacturing data showed a sharp decline. A separate report showed that the euro area investor sentiment dropped to -16.8 in October, the weakest level since April 2013. While the euro has recovered some this morning, it remains within striking distance a two-year low versus the greenback.
The Canadian dollar looks to shake off a week’s worth of losses and take advantage of rising oil prices. The price West Texas crude fell nearly $4.00 last week but has gained over a percent so far today, allowing the loonie to gain about a half a percent.