Each week our Sales Manager Jorn Andriessen will be giving us a snapshot update of the highs and lows of the foreign exchange market. If you would like any further information, please email Jorn@airwallex.com

Summary

Equities across Asia are likely to see gains as trading begins for the week. Gold dropped and 10-year Treasury futures fell to the lowest since April 11.

The EURO rose reasonably against the USD last week and jumped 1.5% as Investors swung back into a risk-taking mode on speculation that pro-growth centrist Emmanuel Macron will become France’s next president after the first round of voting.

Coming up on 100 days in office, the Trump administration has seen little progress on major legislative matters. That could all be set to change this week House Speaker Paul Ryan pledged that a bill will be ready to avert a government shutdown through September.

How the markets are looking

A busy week in terms of data this week:

EURO

Jumped higher by 1.5% in the last week, and there is a big week ahead. On Sunday we have the important French Presidential Election, while on Thursday we have the Minimum Bid Rate which is the interest rate on the main refinancing operations that provide the bulk of liquidity to the banking system. This is followed by the European Central Bank Press Conference.

USD

The US$ Index closed lower but well off its lows last week.
On Tuesday we have Consumer Confidence which is expected to decline from 125.6 to 123.7.
Wednesday we have Crude Oil Inventories coming up.
Thursday sees the release of Core Durable Goods Orders anticipated to fall from 0.5% to 0.4%. This is followed by the usual Unemployment Claims figure thought to be 241,000 from the previous 244,000.

Friday we have the GDP number expected to decline markedly from 2.1% to 1.3%.

AUD

The AUD fell slightly against the USD last week.
Tuesday we have CPI expected to rise from 0.5% to 0.6%.
Wednesday the RBA Governor speaks.

CNY

There are two events which will affect the CNY coming up this week: on Saturday we have both Manufacturing and Non-Manufacturing PMI.

GBP

The GBP closed up strongly against the USD last week.
We will get the updated GDP number on Friday which is anticipated to decline from 0.6% to 0.4%.

YEN

The YEN fell slightly against the USD last week.
Wednesday we have the Monetary Policy Statement.
Thursday we have the BOJ Outlook Report, the Policy rate and the Press Conference.

Household Spending figure which is thought to decline to -0.6% from the previous -3.8%.