U.S. Dollar Awaiting Minutes and other Events This Week
JULY 06, 2021
The U.S. Dollar is trading in tight ranges following the holiday weekend here in the U.S. characterized by optimism from the Biden administration while oil markets suffered a bit of a shock.
OPEC+ members failed to meet as Saudi Arabia and the United Arab Emirates engage in a diplomatic feud, ultimately leaving markets adrift about production for the remainder of the year. After reaching its highest level in six years, WIT Crude is now speculated to potentially reach $100.00/barrel. We are seeing motion in the Antipodean currencies and bet other commodity-based currencies will be affected.
The White House announced that the U.S. should consider itself able to move freely as the pandemic has been confronted with an ongoing inoculation campaign. China is expected to butt heads with the U.S. over digital dominance as both countries review data restrictions between them. We see turbulence ahead as both countries remain in tension on trade.
What to Watch Today…
- No major economic events scheduled for today
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The Euro fell to its weakest point since April as markets continue to digest the news of oil troubles. Data out of the Euro-zone is failing to impress as Factory Orders figures for May only advanced 54.3% when almost 60.0% was expected. It also represents a slowdown from the month prior when it was at 80.2%. We see Euro Struggling as the European Central Bank remains dovish and data seems lagging for what was once expected for this point of the year.
Sterling is in the same situation it was last week awaiting for a deluge of Manufacturing and Industrial data this week. We shall see what materializes after last month the government decided to delay fully re-opening. Expect the Pound to be volatile as we head into a third-quarter where activity is supposed to pick up in the midst of some trading doubts.