Dollar Weaker to Start the Week; Brexit Break
The U.S. dollar is slightly weaker to start the week.
In fact, the greenback is down against all of its G-10 counterparts except for the Swiss franc and Norwegian krone.
President Trump again bucked the tradition of an independent Federal Reserve by attacking the central bank on Twitter yesterday. The President has complained that growth would be over 4.0% if it were not for the Fed increased borrowing costs. The fresh bout of criticism even led European Central Bank Mario Draghi to say that he is concerned about the independence at central banks around the world, especially in the U.S.
This morning’s economic docket showed that New York manufacturing activity improved in April. The index rose to 10.1, beating estimates of an 8.0 reading. Chicago Fed President Charles Evans will discuss the economy around lunchtime followed by the Feds’ Rosengren’s speech at Davidson College tonight.
What to Watch Today…
- No major events scheduled for today.
Complete Economic Calendar can be found here.
After flirting with 21-month lows in early April, the Euro seems to have carved out a floor and has gained modestly during the middle of the month. The Euro has benefited from an uptick in equity markets, easing of Brexit concerns and finally some decent economic data. Traders will be hesitant to push the Euro higher, however, before we get a look at the flash manufacturing and service PMI’s on Thursday.
We will be able to take a breather from the recent onslaught of Brexit news this week. The U.K. and the EU agreed on a six-month extension last week and Parliament will take a one-week recess this week. There will be a slew of economic data released later this week, but nothing has been able to push GBP/USD out of recent ranges. In the meantime, we will enjoy our Spring Brexit Break.