Dollar Flat; Equities Remain in Recovery Mode
AUGUST 19, 2019
The U.S. dollar opens the week mostly unchanged from Friday’s close.
Indeed, the Bloomberg dollar index moved only 0.1%. It is the dog days of summer but there is still plenty on this week’s docket keep us busy.
This morning U.S. Commerce Secretary Wilbur Ross said that the U.S. is going to give Huawei another 90-day extension to conduct some business with the U.S. The comment allowed equity futures to move more solidly into green territory.
There is no major economic data slated for release today but Boston Federal Reserve President Eric Rosengren will be on Bloomberg TV this afternoon. Policymakers will descend on Jackson Hole during the second half of the week which always bears watching. Fed Chairman Jerome Powell will speak on Friday and traders are expecting that he will confirm a rate cut next month.
What to Watch Today…
- No major events scheduled for today.
Complete Economic Calendar can be found here.
EUR/USD is in familiar ranges this morning. Germany was in the headlines over the weekend as Finance Minister Olaf Scholz indicated that the normally austere government could spend 50 billion euro to prop up the economy. Germany’s GDP contracted slightly in the second quarter, putting Europe’s largest economy in danger of slipping into a technical recession.
Italian politics remains messy as Deputy Premier Matteo Salvini continues his push to unseat Prime Minister Giuseppe Conte.
There will be no summer holiday for Brexit uncertainty. Opposition leader Jeremy Corbyn continues his effort to force a general election and make sure a no-deal Brexit will not be an option. Later this week, new Prime Minister Boris Johnson will travel to mainland Europe to meet with German Chancellor Angela Merkel and French President Macron to present his plans for a possible no-deal Brexit if terms are not finalized by October 31st.