U.S. Dollar returns to positive territory

The U.S. Dollar erased most of its losses for the week as overnight action and potential new barriers to a solution to the trade conflict revived the greenback’s role as safe-haven.

Overview

Additionally, the economy continues to establish its expansionary trend with Producer Price Index (PPI) figures exceeding over double their expectation. October’s PPI, excluding food and energy costs, was forecast to read at 0.2%, but growth hit 0.5%.

Positive indicators only make it easier for the Federal Reserve to increase interest rates and follow their hike-path, as indicated in yesterday’s FOMC Meeting Announcement. Later today at 10AM we will see if the University of Michigan Consumer Sentiment survey helps in highlighting ongoing prosperity. At the time of writing, the buck’s advance now represents a gain for the week, making a month of appreciation.

What to Watch Today...

  • • University of Michigan Wolverines Consumer Survey 10AM

EUR

The Euro is now sliding on worries about Italy being unable to come up with satisfactory changes to their budget in time on Tuesday. Furthermore, the European Commission’s Economic bulletin sees moderate growth for the Euro-zone region in 2019 and 2020, while hoping to see resolution on trade, Brexit, and fiscal concerns on the periphery. The Monday holiday will be a welcome break on the consistent bad news.

GBP

The Pound is weakening once again on terrible Brexit developments back in the United Kingdom as some Tory conservatives have been reported to be keen on rejecting any deal Prime Minister Theresa May presents, even if includes solutions to the Irish border question. Also, the Northern Irish Unionists, allies desperately needed, are said to be lacking interesting in anything they have seen thus far from the British leader. The risk of possible snap elections is now growing and once again, a friendly reminder, something must be agreed upon with the EU November 21st.