The U.S. Dollar is suffering losses all across the board this morning and retreating after Producer Price Index figures revealed yet another deep contraction in the level of prices and how much spending there is business-wise.
Overview
Additionally, the world is left to wonder how a full U.S could re-open anytime soon as California has decided to extend the stay-at-home orders for multiple months. COVID-19 keeps causing havoc as Sweden, a country where no quarantine measures were applied, is being impacted by and major increase in deadliness. The virus is deepening uncertainty as each region experiences its own flare ups and reduction in swings. Currently, the U.S. government is looking into implementing another emergency aid package to keep people home and safe.
Unfortunately, China and the United States are not having the friendliest of times as issues are sparking on a few fronts. American prosecutors are warning that U.S. authorities should not feel comfortable allowing deals with Huawei and there is new waves of finger-pointing over who did what or not as this pandemic broke out. We shall monitor statements and new bills coming up, but clearly inactivity and no signs of endgame are taking their toll on everything and everyone.
What to Watch Today…
- No major events scheduled for today
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EUR
The shared currency is not losing value at the moment despite a worrisome Industrial Production release earlier. A reduction of (-11.3%) in April is the biggest decline seen in a month since February 2015. It may not be a shock that productivity has taken such a hit, but expectations were just (-0.5%). Each member nation is starting to report its level of activity as these are the first few days of restrictions being lifted. We will see if any EU leaders make comments that make a dent in markets and we will wait for developments in the ECB vs. German High Court saga.
CAD
The Canadian Dollar along with its brethren in “Aussie” and “Kiwi saw a jump of 1.0% in the last few days, but this is now being tested as the globe begins re-opening. Oil prices rose with the belief that China’s recovery would actually be faster than predicted, but commodities are now easing a bit. April witnessed quick moves and aggressive ones as part of the difficulty in establishing guidance. With Sweden affected in such a deadly way, we shall pay attention to how countries such as South Korea cope with people returning to regularity and if this indeed is a risk without a vaccine or proven treatment on all patients.
