Deeper Analysis
May 2021 in Figures
May 31, 2021
Commodity prices and many commodity-sensitive currencies performed well during May. The weighted dollar index depreciated 1.2%, squandering all of its rise from the first four months of 2021, and dollar losses in May amounted to 1.5% or more against six of the eight currencies featured in the table below. Although central bank policy interest rates […] More
New Overnight Developments Abroad - Daily Update
Active Day for Data Releases; U.S. Markets Closed for Memorial Day
May 31, 2021
First-quarter GDP data were reported by several countries. Turkish GDP advanced 1.7% on quarter. This was the third consecutive quarter of positive growth following an 11.0% plunge in the second quarter of 2020, and it lifted the year-on-year growth rate to a 3-year high of 7.0%, exceeding analyst expectations. A 0.9% recovery of the beleaguered […] More
Foreign Exchange Insights and Next Week
Next Week’s Menu: May 29 – June 4, 2021
May 28, 2021
Central Banks: Monetary policy reviews are scheduled next week in India, Australia, and Israel. Holidays: On Monday, Americans will be observing Memorial Day, and British markets will be shut for the late spring bank holiday. Pancasila Day falls on Tuesday in Indonesia, and Republic Day in Italy falls on Wednesday. Austria and Brazil are some […] More
New Overnight Developments Abroad - Daily Update
Across-the-Board Strength in the Dollar Early this Friday
May 28, 2021
Prior to today’s release of U.S. data, the dollar had advanced 1.3% against the Turkish lira, 0.6% versus the Swiss franc and Australian dollar, 0.4% vis-a-vis the loonie, peso and weighted DXY index, 0.2% versus the yen, and 0.3% against the euro and sterling. U.S. stock futures had extended yesterday’s gain by around 0.5%, and […] More
New Overnight Developments Abroad - Daily Update
Markets Looking for Clues to How Central Banks React to Spike in Inflation
May 27, 2021
In analyzing foreign exchange movement, the calendar year divides into three seasons, with the middle summer period –when trading volume oftentimes thins and dollar movements can be erratic and unrepresentative at times — lying between the U.S. Memorial Day and Labor Day weekends. The dollar is approaching the end of the winter-spring with a trivial […] More
New Overnight Developments Abroad - Daily Update
Holding Pattern Ahead of U.S. Data Getting Released Tomorrow and Friday
May 26, 2021
Not much data have been released today, but action is likely to pick up later in the week with the release of several key U.S. indicators such as GDP, personal income and spending, durable goods orders, trade deficit, and U. Michigan consumer sentiment index. That said, investors have become less fearful about the risk that […] More
New Overnight Developments Abroad - Daily Update
Dollar Slips to Lowest Level Since First Week of 2021
May 25, 2021
Several Fed officials speaking yesterday reaffirmed commitment to current stance for some time longer. In response, the dollar fell 0.4% against the euro, 0.2% versus the Swiss franc, Australian dollar, Chinese yuan, Mexican peso, and its weighted index, and by 0.1% relative to the loonie and sterling. The dollar also firmed 0.1% against the Japanese […] More
New Overnight Developments Abroad - Daily Update
Marginally Softer Dollar
May 24, 2021
The dollar has dipped 0.3% against the euro and Turkish lira, 0.2% versus its weighted DXY index, and 0.1% relative to the kiwi and yuan. At the same time, the dollar shows overnight gains of 09.2% against sterling and 0.1% vis-a-vis the loonie, peso and Aussie dollar, and it is flat versus the yen and […] More
Foreign Exchange Insights and Next Week
Next Week’s Menu: May 22 – 28, 2021
May 21, 2021
Central Banks: Monetary policies will be reviewed in South Korea, New Zealand, Indonesia and Hungary. Bank of Japan Governor Kuroda and Reserve Bank of New Zealand Governor Orr speak publicly. Holidays and Special Events: Whit Monday to be observe in several European countries such as Germany, Switzerland and Norway. Victoria Day also falls on Monday […] More
New Overnight Developments Abroad - Daily Update
Dollar and Equities Strengthened Overnight
May 21, 2021
Preliminary May purchasing manager survey findings for Euroland show a 39-month composite index high despite marginally slower growth in manufacturing due to intensifying supply chain delays. Service sector activity is benefiting from a relaxation of Covid restrictions, and overall optimism regarding the one-year outlook remained high in May in spite of higher inflation. The French […] More
