Currencies had been bid to start the day but have given back most of their gains to the dollar into the North American open.
Interestingly, U.S. equity futures are still holding up well as they attempt to extend the recovery from Friday’s decline, which followed a weak set of U.S. economic data. The big question now is whether the softer data will prompt the Fed to shift toward a more dovish stance on monetary policy. If this happens, it could support risk assets, but for now, the currency market remains skeptical.
In Europe, markets are still digesting the German election results, though the initial response was positive. The euro also got a slight boost on news that President Zelensky would be willing to resign if a peace deal were reached. On the data front, German Ifo data came in weaker than expected, which may have contributed to the latest euro selling after an earlier rally.
Looking ahead, key events include the Chicago Fed National Activity Index, Dallas Fed Manufacturing data, and speeches from Bank of Canada and Bank of England officials.
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.
