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

Investors became more optimistic as the new week dawned without any major international incidents that dampened the prospects for global growth.

The dollar pared a decline sparked by the U.S. decision not to label any countries currency manipulators, while safe haven demand eased after North Korea’s failed ballistic missile launch and Turkey’s referendum (The Turkish lira rose 1.2 percent).

Faster growth in China boosted optimism about the strength of the global economy, while readings on American housing and New York manufacturing lowered the odds for higher interest rates.

U.S. stocks rose to be the highest they have been in the past six weeks, while the dollar weakened as geopolitical threats eased and a fresh set of American economic data dampened the odds for a Federal Reserve rate hike in June.

How The Markets Are Looking

It's been a quiet week in terms of data due to the Easter holiday season:

AUD: The AUD rose strongly against the USD last week.

  • There is only one item for the AUD this week which is the Monetary Policy Meeting Minutes on Monday.

USD: The US$ Index closed meaningfully lower last week.

  • On Tuesday we have Building Permits thought to be 1.25M from the previous 1.22M.
  • Wednesday we have Crude Oil Inventories.
  • On Thursday we start with the FED Manufacturing Index expected to fall from 32.8 to 25.6.
  • The usual Unemployment Claims figure is anticipated to rise from 234,000 to 241,000.
  • Finally a FED official speaks.

EURO: The EURO rose very marginally against the USD last week.

On Monday we have the German Business Climate number thought to be 111.2 from 111.0.

  • There is no data for the EURO this week.

GBP: The GBP closed up reasonably well against the USD last week.

  • On Thursday the BOE Governor speaks. Friday sees the release of Retail Sales thought to fall from 1.4% to -0.3%.

CNY: On Thursday we have both manufacturing PMI and Non-Manufacturing PMI. The former is expected to rise from 51.6 to 51.7.

YEN: The YEN rose strongly against the USD last week.

  • Only one item for the YEN next week which takes place on Monday when the BOJ Governor speaks.