Though the pace of dollar momentum has slowed, the dollar remains dominant, with the dollar index extending its run to its highest level since early November. The market has successfully priced in a dollar-bullish U.S. administration, and the appetite to stay with the dollar remains strong.
It’s now clear that Republicans will retain control of the House, giving Donald Trump a clean sweep and a solid runway to push his campaign promises.
The current economic landscape under Trump’s administration—a strong dollar—appears to be working well for U.S. stocks, which remain near record highs. This strength, however, is adding strain to economies outside the U.S.
The euro, for instance, has been hit hard, dropping to a new yearly low against the dollar this week, with speculation growing that the ECB may consider a larger 50-basis-point rate cut at its next meeting.
Earlier today, we saw softer employment data from Australia, while Euro area data was mixed, showing solid employment and GDP as expected, but weaker industrial production.
Looking ahead, key events include U.S. producer prices, initial jobless claims, ECB minutes, ECB commentary, and a speech by Fed Chair Powell.
For the exact date and time of these major economic events, import the BlackBull Markets Economic Calendar to receive alerts directly in your email inbox.
