The United States Dollar regained some ground against most majors this morning, marking Buck’s first weekly gain in more than a month.
Overview
Rising tensions between the US and China are dampening global risk appetite as President Joe Biden plans to sign an executive order limiting investment into China by American businesses, a marked escalation in the US economic campaign against the global superpower. Though the nation’s economic outlook has beaten expectations recently, rising tensions with the United States give international markets pause and dampen risk sentiment globally.
Speakers from the Federal Reserve over the course of the week also gave the Buck some limited strength, as most reaffirmed the need for at least one more rate hike at the central bank’s next meeting on May 2nd and 3rd. Before next week’s media blackout preceding the meeting, one more speech remains on the docket, and the release of US PMI this morning. Overall choppy trade dominates markets as traders search for further signals on the Fed’s path forward after May.
What to Watch Today…
- No major economic events are scheduled for today
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CAD ⇓
The Loonie slid further against USD this morning as Canadian retail sales fell 0.2% in February. Though above expectations, the negative figure still shows slowing demand in the Canadian economy. The flash figure estimate for March indicated a fall in retail sales of 1.4% as well. Though oil prices posted a slight gain today, tensions between the US and China are driving price action and keeping CAD depressed.
GBP ⇓
Even as myriad economic data releases from the UK this week all surprised to the upside, Pound Sterling is taking losses this morning. Earlier today Deputy Prime Minister Dominic Raab announced his resignation over allegations of bullying amongst his staff. Raab’s resignation is already the third high-level departure in Prime Minister Rishi Sunak’s short tenure as head of state, raising questions about the longevity and effectiveness of his government. Strong data proved to be no match for internal turmoil and international geopolitical tensions.
