Monday's Market Minute: Watch The U.S. Dollar

This week, there’s a focus on economic data, earnings, and markets at or near all-time highs. First, a look at the calendar and what could move markets. Today is light to begin the week, but we do have a couple of Fed speakers, one of them being Raphael Bostic. Keep in mind, Bostic has been commenting on how he thinks we could scale back some of the bond purchases.

Later in the week is when things heat up, with the JOLTS report tomorrow, CPI, PPI, and Retail Sales all on the radar as expected market movers. Also, don’t forget earnings: the first big name to provide quarterly results this week will be KB Home KBH tomorrow on the close; later in the week we have Delta Airlines. But the real focus will be when things kick off Friday with the banks – Citigroup Inc C, JPMorgan Chase & Co. JPM, and Wells Fargo & Co WFC will be watched closely.

U.S. indices should also be watched after closing at all-time highs to end the week even with the worst jobs report we've seen in months. The non-farm payrolls fell for the first time in seven months and came in well below expectations at -140K. The U.S. Dollar is inching up off multi-year lows; the short Dollar trade is being called "overcrowded" by many and happens to coincide with rates on the move higher.

Last week we saw the TNX take out the 1% level in the biggest move-up rates have seen in six months. Keep in mind a weak Dollar has supported many of the trends we’ve been seeing; a strong U.S. Dollar could create headwinds for U.S. Indices, Metals, and commodities in general. So, lots to keep an eye on as we head into the second week of the new year.

Photo by Sharon McCutcheon on Unsplash