The U.S. Dollar stuck around familiar ranges as the U.S. weighs the pros and cons of launching a re-opening of the economy.
Overview
Dr. Anthony Fauci will be addressing the Senate later today with a dire warning over returning to “normalcy” too quickly and will push for further aid in order to keep people at home. The event shall start around 10AM. While the New York region is showing signs of overcoming the worst part of the curve, other parts of the country are seeing various degree of infection. Secretary of the Treasury Steve Mnuchin said he would like to see some of the programs that have been put in place recently flourish and we need to give it some more time. The buck is neither appearing as a source of safe-haven nor rising for any reason. Much like the world, flows are quiet.
With WTI Crude prices rising above $30.00, you may see MXN and CAD get a bump throughout the day. Talking about prices, Consumer Price Index figures for April (-0.8%) represented the biggest drop since 2008. Clearly, there is no guidance for producers and the physical inactivity forcing store closings has pushed many businesses to incentivize. We will monitor all kinds of possible headlines, but we are most interested in finding out the details of a White House report highlighting the issues facing the heartland as it gets higher levels of infection.
What to Watch Today…
- No major events scheduled for today
Complete Economic Calendar can be found here.
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EUR
The Euro is stuck as the rest of the world keeps eyes on the success of re-opening and whether others can take note on how to approach their situation. In the epicenter of Wuhan, China, officials announced that they will be able to test all 11.0 million residents. The next six weeks will be defined by how many people can go back from being laid-off to employed again. Labor will be the ultimate factor in determining how recessionary the future may look like.
France’s President Emmanuel Macron has felt pressure to reopen and Germanys officials are going to be giving their take on the EUs response to the German highest court decision on QE. The resolve to move forward from the bloc’s largest economies is being tested and will help in assessing where the Euro will go.
GBP
The Pound is going to be moving one way or the other as the U.K. plans to slowly re-open. Prime Minister Boris Johnson and Chancellor of the Exchequer Rishi Sunak plan on adding more financial aid and both say there is a need to take baby steps” as we gauge how Austria and South Korea do, since they have been praised for being more prepared and willing to try getting people back to regular life. We will get look at the economy tomorrow gauging GDP. We feel Sterling has room to grow, but Brexit issues and negotiations will test momentum.
