Tuesday's Market Minute: Watching Rates & US Dollar

This week has some relief from the break-neck, fast paced, rapid fire release of economic data and earnings we’ve seen the last few weeks; let’s take a market minute to get ahead of what some movers. In terms of economic data this week, traders and investors will be keeping an eye on the JOLTS Wednesday to kick things off. The JOLTS data is the last page in this month’s chapter of the jobs focus. The number will be closely watched as it continues to suggest a pandemic-induced historic spread between job openings and unemployed workers here in the U.S. This week we also have Beige Book, weekly Jobless Claims, and PPI on Friday to cap it all off. We also have a couple companies reporting quarterly results to watch out for like Lululemon Athleica Inc LULU, Oracle ORCL, GameStop GME, Restoration Hardware RH, Coupa Software Inc. COUP, and Casey’s General Stores Inc CASY.

We also have some central bank activity to keep an eye on this week. The RBA, as expected, left rates unchanged but has moved ahead with a gradual taper of asset purchases: $4B through February. Tomorrow the Bank of Canada meets, and Thursday we’ll hear from the ECB. Comments and actions from central bankers abroad will be seen as a possible precursor as to what we can expect from the FOMC later this month.

We also have some central bank activity to keep an eye on this week. The RBA, as expected, left rates unchanged but has moved ahead with a gradual taper of asset purchases: $4B through February. Tomorrow the Bank of Canada meets, and Thursday we’ll hear from the ECB. Comments and actions from central bankers abroad will be seen as a possible precursor as to what we can expect from the FOMC later this month.

With U.S. indices at or near all-time highs and commodities in a bit of a holding pattern, rates here in the U.S. are sideways. We’ve seen no rejection of the trend up in stocks as current economic conditions continue for a risk-on sentiment for investors. Also, keep an eye on the U.S. dollar; it’s on the move lower and this could stir things up if it continues – nothing to get to worked up about as long as we hold above Jan. low around 80.00, but if it falls below things could get interesting, as oftentimes the ripple effect the U.S. Dollar creates can be widespread.

Image by Leonhard Niederwimmer from Pixabay