Dollar Slightly Stronger; Sterling Under Pressure
APRIL 06, 2021
The U.S. dollar is slightly firmer this morning, clawing back some of its losses from yesterday’s session.
We will be keeping an eye on the International Monetary Fund and the World Bank as they kick off their spring meetings. U.S. Treasury Secretary Janet Yellen will be arguing for a global corporate tax minimum of 21%. She will also sit on a panel on the climate today. Fed Chief Jerome Powell will take part in a discussion on the global economy on Thursday.
After a slew of mostly positive data yesterday, today’s docket is comparatively light. Yesterday, service data showed more signs the U.S. economy is picking up steam as the economy reopens. JOLTS job openings data for February are due out at 10 a.m. Richmond Fed President Barkin will speak this afternoon and President Biden will give an update on the vaccine progress at 3:45 p.m.
What to Watch Today…
- JOLTS job openings at 10:00 a.m
EUR/USD is mostly unchanged from yesterday’s close. The Euro was able to climb to a two-week high against the U.S. dollar yesterday as risk sentiment was positive, at least in those markets where equity markets were open. The Stoxx 600 index is in rally mode today, playing catch up from yesterday’s risk-on mood. European equities have now erased their pandemic losses. The Euro’s gains may be limited as the disparity between the success of the vaccine rollout between the U.S. and Europe seems to grow with each passing day.
After gaining yesterday, the British pound tumbled as European traders came back to their desks after the Easter holiday. The sterling had seen some relief in the past few days as the U.K. made strides to reopen the economy. Prime Minister Boris Johnson confirmed that services such as pubs and restaurants will open next week, the ban on foreign travel might remain for a longer period. The earliest date for non-essential international travel will be May 17th but that date could be pushed back further if infections continue to surge globally.