USD Holds Steady After a Quiet Monday
The U.S. dollar ticked up a smidge today after a laid‑back Monday marked by four flat sessions and a sluggish trading volume. Why? The markets were on a holiday break, so the usual buzz was muted.
What’s on the Horizon?
- FOMC Minutes Coming Tomorrow – Traders are sharpening their pencils, ready to sift through the Federal Open Market Committee’s latest notes for clues on when the Fed might finally cut rates.
- Inflation Pressures Still Linger – Last week’s numbers nudged the market to think the Fed will keep rates high longer than anyone hoped.
- PMI is the Pulse – This week’s Purchasing Managers Index will give everyone a clearer picture of the U.S. economy’s health, which, despite some bruises, has shown real resilience.
Euro: Quiet Towns in a Mid‑Street
The euro has been a bit shy against the dollar, quietly hanging back as new economic data drops. The European PMI is under the microscope this week, promising insights into the region’s business landscape, which is navigating some uneasy terrains.
Other watchful points:
- German GDP growth figures.
- Eurozone CPI – could nudge chatter about an early ECB rate cut.
Yuan Gets a Boost
China saw a surprisingly large cut in the five‑year loan prime rate, the benchmark used for mortgages. This move gave the yuan a slight lift against a stronger dollar, although the effect may fade quickly as investors keep a wary eye on the property market’s lingering troubles.
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