We saw a quiet trading session in currencies on Monday. Dollar up slightly, foreign currencies slightly lower. U.S. stock indices moderately lower; bonds higher.
Most eyes are on Washington this week as the main story is over the battle between Democrats and Republicans on the question of the next Supreme Court member. Democrats say they will filibuster the nomination of Neil Gorsuch to join the court. Republicans say that Gorsuch will become the next justice on Friday. The question is if the Republicans will invoke the “nuclear option” to get Gorsuch on the court. Presently the vote must be sixty affirmative votes to win. However, if the Republicans change the rules (the nuclear option) it will only take 51 votes to confirm. The nuclear option was first used by the Democrats under Leader Harry Reid in 2013 to stop filibusters against Obama nominees. Time will tell.
The main economic report this week will be the employment report on Friday. Markets will probably mark time until that report.