It seems financial markets are feeling more at ease following President-elect Trump’s nomination of Scott Bessent as the next Treasury Secretary. Bessent has expressed a willingness to implement tariffs gradually to avoid shocking the market.
On the back of this, there has been renewed risk appetite and some mild profit-taking on Trump trade dollar long positions. However, as of the North American open on Monday, we are already seeing renewed dollar demand.
Meanwhile, another round of soft data from the Eurozone, this time in the form of German IFO readings, has failed to aid the Euro’s recovery from its lowest levels against the dollar since November 2022.
In the UK, the pound has come under pressure following dovish comments from both the Bank of England’s Deputy Governor and BOE policymaker Catherine Mann.
Looking ahead, key data releases include Canadian manufacturing sales, the Chicago Fed National Activity Index, and Dallas Fed manufacturing figures.
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