U.S. Dollar quiet as the eventful week begins
OCTOBER 28, 2019
The U.S. Dollar opened the busy week in mostly familiar ranges with notable loses versus the South African Rand.
While the week starts off fairly slow, there is plenty on this week’s docket that can set the dollar direction for the end of the year and into 2020.
The Chicago Fed and Dallas Fed will be released this morning. Consumer Confidence and Pending Home Sales will follow tomorrow ahead of the Federal Reserve’s meeting on Wednesday. Additionally, we will get the initial reading of third-quarter Gross Domestic Product that morning, which is expected to show a slowdown at 1.6% after growing by over 2.0% in the first half of the year.
What to Watch Today…
- No major events scheduled for today.
A complete Economic Calendar can be found here.
The Euro has advanced by 1.8% thus far in October, looking to close with again for the month regardless of the worrisome data behind it. We shall see the effects of trade uncertainty and low productivity in the first assessment of GDP growth for the third quarter.
The expectation is quite low at 0.1%, a reduction to half of what it was in Q2. Individual member nations will also be releasing a slew of economic indicators as we move through the week. The EU’s willingness to delay the Brexit deadline has not necessarily produced any further appreciation for the shared currency.
The Sterling held tight ranges against the U.S. Dollar. Late yesterday, the European Union announced it agreed to delay Brexit by three months until January 31st. The extension furthers diminishes the chances of a no-deal Brexit but “uncertainty” will continue.
U.K. Prime Minister will now continue his push to have an early general election. Johnson will need to secure a two-thirds majority in today’s vote in the House of Commons, which seems unlikely. Voting is expected to occur around 1 pm Eastern today.