17/03/2026
Markets adopt a cautious stance to begin the week after United States (US) President Donald Trump announced late Friday that the US will impose 100% tariffs on Chinese imports.
The US government shutdown continues, with Democrats and Republicans failing to make any progress on reopening the government, and the Senate will not return until Tuesday.
The focus today is entirely on central bank officials, including Federal Reserve (Fed) Chair Jerome Powell, who will deliver welcoming remarks at the Community Bank Conference via a pre-recorded video. Fed Governor Michelle Bowman, Minneapolis Fed President Neel Kashkari, and Fed Governor Michael Barr will also be speaking.
The US Dollar (USD) is extending its rebound midweek, with the USD Index climbing to its highest level since early August near 99.00. This strength comes from increased safe-haven demand due to political developments in Japan and France.
Political instability in France is the dominant market driver in Europe, with Prime Minister Sebastien Lecornu’s resignation leading to a sell-off in the Euro.
The US Dollar (USD) is starting the week with a firmer bias, with the USD Index (DXY) jumping 0.3% to trade near 98.00. This strength comes despite the continuing US federal government shutdown, which enters its sixth day.