The U.S. Dollar has managed to maintain its gains of an overall average of 0.5% thus far this May, according to the Bloomberg Dollar Spot Index.Fluctuations in the FX market have not been totally unfavorable to the greenback, which has found its way back as a result of growing uncertainty over trade with developments that affected main communications company Huawei. The trade war targeting the company adds on to fear about the global supply chain being affected along with contracts tom build 5G networks in various regions.
Oil prices were on their way up at the time of writing on news that OPEC producing countries agreed to maintain certain constraints. Mexican Peso and Canadian Dollar were rising in value. Meanwhile, Australian Dollar surged as elections over the weekend gave victory to Prime Minister Scott Morrison, maintaining the Liberal-National coalition in power. The win satisfied investors since it shows business will continue as usual without disruption from a new government.
No major events scheduled for today. Complete Economic Calendar can be found here.
The Euro remains humbled by a strong dollar in the midst of turbulent markets and stayed weak regardless of helpful data for the overall Euro-zone economy. German Producer Price Index figures revealed an expansion of half a percent in April, thus overcoming a contraction the month prior and also exceeding expectations of 0.3%. While the bloc recovers, expect news regarding politics and trade to further dictate whether Euro loses to the buck only because of the safe-haven role USD is heavily playing. Purchasing Managers Index and Consumer Confidence will be stats to dissect later in the week.
With only three or four weeks likely left in her tenure, Prime Minister Theresa May is already seeing a list of characters displayed all over the media as her replacement. Indeed, Tory leadership and other members made it clear that they were looking into options such as former Foreign Secretary Boris Johnson and similar politicians like him who seeks an actual exit regardless of the terms. Pound Sterling will likely remain at its weakest point since January 10th.
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