U.S. Dollar at best levels since mid-September

The U.S Dollar keeps on climbing after the holiday with investors buying U.S. Treasury bonds with attractive yields.

Overview

Chaos around the world in terms of trade, shaky commodity markets, and a downgrade to the global economic outlook by the International Monetary Fund (IMF) are attracting market participants towards American assets. Losses to equity markets across Europe and Asia aided the dollar against most counterparts and uplifted the safe-haven Japanese Yen as well.

We have inflationary growth in the form of Consumer Price Index coming Thursday and some production figures tomorrow. Without anything scheduled today, we expect the greenback to sustain its gains.

EUR

The Euro is falling with Italy still under budget pressures from the EU and economic indicators that point at a big difference between growth in the Euro-zone and the United States. German Industrial Production contracted last month and economists are worried about the health of the biggest regional economy. Any type of boost to the Euro will need to come in the form of healthy or stellar numbers, which have been elusive lately.

GBP

Further delays to Brexit talks are damaging the Pound, which enjoyed a surge last week. A draft expected to be adopted by the EU today signaling progress will not happen along with an absence from U.K. Brexit Secretary Dominic Raab from Brussels this week. Everything has been pushed back and even an EU council meeting for next week will be postponed until sometime later in the fall. Things look dire and desperate in trying to come up with any deal and the Ireland/N.I. border issue is still up in the air.