Daily Market Update

U.S. Dollar slightly up as macro data comes in

August 12, 2022

The U.S. Dollar is trading in tight ranges against its peers, improving just slightly over some of the majors. 


This week’s mood across markets has been characterized by less pessimism over the remainder of the year and the recessionary pressures plaguing economic recovery. While inflationary gauges remain high, the fact that the U.S. could be getting away from peak inflation is perceived as the start of better times ahead for consumer prices. Fed officials have been quick to point out they do not see themselves slowing down yet until 2023 in their hiking path.While the macroeconomic picture gets rosier, expect equities to continue finding room to expand. Commodity-based currencies have hit the brakes for now as oil prices seem to have subsided thus causing a trickling effect across other raw materials as shipping and other logistics get a bit easier. The S&P 500 is set for a fourth consecutive week of gains. We think now that some major data is out, there will be quiet times for the next few weeks.


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  • No major economic events are scheduled for today

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Euro fortunes have calmed down a bit this morning, although there are signs the European Union is not performing as poorly as estimated. Industrial Production for the month of June expanded by 0.7% when just 0.2% was expected, increasing the yearly average to 2.4%. Hungary and other central European nations were allowed to see more gas flows coming in from Russia after a deal was struck to maintain flows after some payment arrangement. Ukraine, however, is said to be increasing its aggressiveness, and there have been reports of damage to military facilities in Crimea that affect Russia’s ability to invade further. The shared currency could just be taking a break.



Sterling is also a bit down but could see itself improving later following economic data that was not as terrible as expected. Monthly Gross Domestic Product for June contracted by (-0.6%) when double (-1.2%) was expected. Quarterly GDP came in at (-0.1%) vs. (-0.2), thus showing that the gloom and doom may not be as dire. Additionally, Industrial Production for June also came in less contracted than expected, which means the Bank of England should be cautious, but not too much.

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