The US greenback held its floor in the present day, as buyers digested Federal Reserve Chair Jerome Powell’s latest feedback on the continued charge hikes and their influence on the financial system. This stability comes in opposition to the backdrop of Moody’s (NYSE:) determination to downgrade the US sovereign credit standing, citing political and governance issues.
The market is intently watching this week’s financial indicators, with Tuesday’s Consumer Price Index (CPI) and retail gross sales figures taking heart stage. Analysts are projecting a flat month-over-month headline CPI, which might see the year-over-year charge lower to three.3%. The core CPI, which excludes unstable meals and power costs, is anticipated to stay regular at 0.3% month-over-month or 4.1% year-over-year. Soft retail gross sales knowledge may trace at tighter credit score circumstances impacting US shoppers.
Later within the week, all eyes might be on San Francisco, the place President Joe Biden is ready to fulfill with Chinese President Xi Jinping in the course of the Asia-Pacific Economic Cooperation (APEC) convention. The encounter comes amidst heightened geopolitical tensions, with many hoping for a dialogue that would ease relations between the 2 financial powerhouses.
As the week progresses, issues a few potential US authorities shutdown loom, which could lead on the greenback to revisit latest lows round 105.35/40. Investors stay cautious as these developments might considerably affect market sentiment and forex valuations within the coming days.
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