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 Swiss franc.

Markets are shut in Germany and Switzerland for Whit Monday and will be also closed for Victoria Day in Canada.

Stock markets were narrowly mixed in Asia and Europe. U.S. stock futures imply a rise of slightly less than 0.5% at the open.

U.S. and British 10-year sovereign debt yields edged a basis point lower. WTI oil rebounded 2%, and gold firmed 0.3%.

U.S. President Biden’s ambitious domestic policy plans continue to lack Republican support, and geopolitical problems are interfering with his ability to focus attention on repairing matters at home.

It’s been a light day data-wise.

Retail sales in New Zealand last quarter proved far more resilient than analysts were anticipating with advances of 2.5% on quarter and 6.8% compared to their level in the first quarter of 2020.

In Taiwan, retail sales and industrial production recorded robust year-on-year increases in April of 18.3% (a 123-month high) and 13.6% (a 2-month low). The jobless rate was 3.71%.

In Poland, retail sales and industrial production posted record on-year increases in April of 25.7% and 44.5%.

In Singapore, CPI inflation rose 0.8 percentage points to an 83-month high in April of 2.1%, having been as low as zero percent at the end of 2020. Although at a 16-month high, core CPi remained benign at 0.6%.

Finnish PPI inflation in April of 8.7% represented at least a 25-year high and a stark reversal from -7.1% in May 2020.

South African business confidence slipped in March to a 4-month low.

But consumer sentiment and business confidence improved this month to 15- and 21-month highs in the present month in the Czech Republic.

The monthly Chicago Fed National Activity index is due shortly, but in the absence of meaningful data news this Monday, investor attention will be turned to central banker comments. ECB President Lagarde before the weekend disparaged speculation that monetary policy in Euroland might soon begin to taper, and several Fed officials are scheduled to speak publicly today.

Copyright 2021, Larry Greenberg. All rights reserved. No secondary distribution without express permission.




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