The EUR is the strongest and the CHF is the weakest as NA traders enter for the day

The EUR is the strongest and the CHF is the runaway weakest of the major currencies as the North American session begins. The USD is weaker as flow of funds heads out of the safety of the US dollar – and other currencies like CHF and JPY – and into the European currencies.

The moves are being helped by hopes for a peace agreement in Ukraine. Russia calls Ukraine talks constructive. That has stocks higher and also yields moving to the upside. Oil is trading lower. OPEC meets this week and is expected to keep the 400K BPD increase plan intact although there is question if production goals can be met. There is storm damage to the Capsian Pipeline Consortium that will likely limit Russian oil exports. There is also the question of weaning off Russian oil going forward. On the negative side, Shanghai rolling Covid lockdown remains a concern, and peace is still better than war.

In the US, the JOLTS job openings for February will be released at 10 AM along with consumer confidence for March. The consumer confidence is a more timely economic report. Included in the report is the present and expectations indices. The present situation remains well above the future expectations. Consumer confidence is expected to fall to 107.0 from 110.5 last month. Last month the present situation index moved up to 145.1 from 144.5. The expectations index meanwhile decline to 87.5 from 88.8 as  inflation 
Inflation

Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is measured by the level of the total money supply of a specific currency, for example the US dollar, which is constantly increasing. However, an increase in the money supply does not necessarily mean that there is inflation. What leads to inflation is a faster increase in the money supply in relation to the wealth produced (measured with GDP). As such, this generates pressure of demand on a supply that does not increase at the same rate. The consumer price index then increases, generating inflation.How Does Inflation Affect Forex?The level of inflation has a direct impact on the exchange rate between two currencies on several levels.This includes purchasing power parity, which attempts to compare different purchasing powers of each country according to the general price level. In doing so, this makes it possible to determine the country with the most expensive cost of living.The currency with the higher inflation rate consequently loses value and depreciates, while the currency with the lower inflation rate appreciates on the forex market.Interest rates are also impacted. Inflation rates that are too high push interest rates up, which has the effect of depreciating the currency on foreign exchange. Conversely, inflation that is too low (or deflation) pushes interest rates down, which has the effect of appreciating the currency on the forex market.

Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is measured by the level of the total money supply of a specific currency, for example the US dollar, which is constantly increasing. However, an increase in the money supply does not necessarily mean that there is inflation. What leads to inflation is a faster increase in the money supply in relation to the wealth produced (measured with GDP). As such, this generates pressure of demand on a supply that does not increase at the same rate. The consumer price index then increases, generating inflation.How Does Inflation Affect Forex?The level of inflation has a direct impact on the exchange rate between two currencies on several levels.This includes purchasing power parity, which attempts to compare different purchasing powers of each country according to the general price level. In doing so, this makes it possible to determine the country with the most expensive cost of living.The currency with the higher inflation rate consequently loses value and depreciates, while the currency with the lower inflation rate appreciates on the forex market.Interest rates are also impacted. Inflation rates that are too high push interest rates up, which has the effect of depreciating the currency on foreign exchange. Conversely, inflation that is too low (or deflation) pushes interest rates down, which has the effect of appreciating the currency on the forex market.
Read this Term concerns way on consumer’s expectations.