The Greenback has been losing ground recently, reaching multi-week lows due to expectations of interest rate cuts by the Fed. This sentiment was further reinforced by lower US CPI data in April, causing the USD Index (DXY) to drop to the 104.00 zone. Investors are now looking ahead to key economic indicators such as Weekly Mortgage Applications, Existing Home Sales, FOMC Minutes, Initial Jobless Claims, Chicago Fed National Activity Index, and more scheduled for the end of May.
EUR/USD, on the other hand, has been maintaining its uptrend and flirting with the key 1.0900 barrier, advancing for the fifth consecutive week. Economic data releases to watch include Germany’s Producer Prices, EMU Balance of Trade, advanced Manufacturing and Services PMIs in Germany and the eurozone, and the final Q1 GDP Growth Rate in Germany.
GBP/USD has seen a significant march north beyond the 1.2700 mark, hitting levels not seen since mid-March. In the UK docket, upcoming data releases include CBI Industrial Trends Orders, Inflation Rate, Public Sector Net Borrowing, preliminary Manufacturing and Services PMIs, Retail Sales, and GfK Consumer Confidence.
USD/JPY has traded in a choppy fashion and ended the week with marginal losses around 155.50. Economic data on the horizon includes the Tertiary Industry Index, Reuters Tankan Index, Balance of Trade, Machinery Orders, weekly Foreign Bond Investment, flash Jibun Bank Manufacturing and Services PMIs, and the Inflation Rate.
AUD/USD has resumed its uptrend and managed to surpass the key 0.6700 barrier, closing the week with marked gains. Upcoming data releases to watch for include the Westpac Consumer Confidence Index, RBA Minutes, flash Judo Bank Manufacturing and Services PMIs, and Consumer Inflation Expectations.
Looking ahead, investors are focusing on key speeches and meetings that could shape monetary policies. Fed Chairman Powell is scheduled to speak on May 19, followed by speeches from Fed officials Bostic, Barr, Waller, and Jefferson on May 20. Speakers on May 21 include Fed officials Bostic, Barkin, Williams, Waller, and Barr, as well as ECB’s Lagarde, BoE’s Bailey, and US Treasury Secretary Yellen. On May 22, Fed officials Bostic, Collins, and Mester will speak, followed by Fed’s Bostic and BoE’s Pill on May 23, and Fed’s Waller and SNB’s Jordan on May 24.
Additionally, upcoming central bank meetings include the PBoC on May 20, the Hungarian central bank (NBH) on May 21, Bank Indonesia (BI) and RBNZ on May 22, and Bank of Korea (BoK) and the CBRT on May 23. These meetings will play a crucial role in shaping monetary policies and could impact the global financial markets.
