The U.S. Dollar is trading in weaker ranges to start a new month, following the trend from yesterday that witnessed a slew of data affect the outlook for the U.S. economy.
Overview
Overall, the theme of the week seemed the acceptance of historically record low numbers and contractions accompanied by a search worldwide for a path towards re-opening the economy to avoid further damage.
The buck’s run as a go-to safe-haven seems threatened at the moment by more optimistic chances of a return to activity in other regions. While each state in America is wondering how to cope, EU member nations as well as the United Kingdom are looking to confirm plans next week and even English Premier League foreign players are to report by May 8th. This major sports entity and others may be the first initial steps in staging a comeback to live production.
Earnings reports for tech giants indicated a possible return to risk-averse mood across markets, but April proved to be one of the best monthly performances for some exchanges since 2011. May shall test our willingness and ability to revamp our lives, but it will be very slow and with hesitation as infections, nor the deadliness, have ceased. We shall see if contractions in Construction Spending as well as Manufacturing are worse than anticipated when they are released at 10AM.
What to Watch Today…
- Construction Spending 10AM
- ISM Manufacturing 10AM
Complete Economic Calendar can be found here.
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EUR
The Euro has recuperated some ground and is now trading at its highest level in over two weeks. Data is as awful as it has ever been, but the amount of emergency thrown at major economies like Germany to contain the spread and the announcements by the European Central Bank this week give hope to the continent that the worst is already behind them. The greenback waning could become a feature of May as markets absorb the real impact of the long-lasting effects of the pandemic.
AUD
Since risk-aversion is growing and COVID-19 looks more like a long-term issue we will have to slowly battle and win against, the outlooks for the Oceanic region are just further downgraded. The rallies that were sparked earlier as April came to an end seemed to have less fuel to them than thought as experts warn that labor will be significantly worse than estimated for Australia and New Zealand. The nature of globalized supply chains affect this distant region the most especially as no coordinated plan to open most of the world has not been set into motion yet. Aussie and Kiwi fell by over 1.5% today.
