The U.S. Dollar continues to strengthen as markets remain wary from negative headlines globally regarding the resurgence of COVID with the Delta variant.
Overview
Stocks are feeling pressure although some buyers out there are looking to buy the on the dip. Some large companies are revealing their earnings with IBM having its best revenue quarter in three years. The mixed bag comes as domestic consumption seems on the rise, but there are regions where infections and hospitalizations are making officials concerned they will need to go back to safety measures, at least masks requirements indoors, and possible closings.
At the time of writing, Housing Starts and Building Permits figures for June were released. The former impressed big time while the latter fell short of expectations. Housing Starts came in at 6.3% over 1.2% estimated, its biggest jump since December. We shall see if anything sparks a move the other way as markets dwindle based on doubts on growth, inflation, but more importantly, COVID.
What to Watch Today…
- No major economic events are scheduled for today
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EUR ⇓
The Euro has declined some more ahead of the European Central Bank’s meeting on Thursday in which they are expected to solidify their commitment to keeping an easy financial environment. It is otherwise a slow week for the Euro-zone where most people are enjoying some holiday time and return to beaches, restaurants, and other previously shut places. We will see the decision and then Purchasing Managers Index numbers in the manufacturing sector on Friday.
CAD ⇓
The Canadian Dollar continues to trade around its weakest level since February 5th as energy markets tumble in preparation for an increase in the supply of oil by OPEC+ members. Without any serious data releases until August, we likely will continue seeing high volatility for the currency as global risk appetite fades and then the U.S. weighs whether it will intervene in supposedly combating inflationary growth. A turbulent world is now favoring holding on to the buck as the safest of assets.
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