Major Currencies Overview
First up, here’s a rundown of how the major pairs performed in the past week:
Dollar traders shrugged off weak U.S. economic data and boosted the currency to the top of the charts as risk aversion returned to the markets.
U.S. CPI and PPI readings are up for release this week, but the focus could stay on overall sentiment based on coronavirus updates, as well as global stimulus efforts to battle the crisis. Read more.
The Canadian dollar had a volatile run as crude oil tossed this way and that while traders remained hopeful that talks with Russia could push through.
OPEC meetings are scheduled to take place this week, and the possibility of an output deal could keep the Loonie supported. Canada is also due to release its jobs data for March. Read more.
EUR & CHF
The euro was bogged down by downbeat economic data and worsening outbreak numbers while the franc barely took advantage of risk-off flows.
The ECB meeting minutes and SNB foreign currency reserves data are due this week, so traders might have a better idea of what policymakers have up their sleeves. Read more.
Pound pairs chalked up a mixed performance as counter currency flows were much stronger and economic data from the U.K. wasn’t so impressive.
The monthly GDP reading is on this week’s docket, along with manufacturing and industrial production data, but the spotlight is likely to stay on COVID-19 updates. Read more.
The yen gave its forex rivals a run for their money as risk aversion came back in play and Japanese data saw some green.
There are no major catalysts lined up from Japan this week, which suggests that yen traders could react mostly to counter currency flows and overall market sentiment again. Read more.
The Aussie was off to a good start last week, but it gave up those gains and more when risk-off flows returned to the markets.
The RBA decision is coming up next, and Chinese inflation data might also be worth watching later in the week. As always, risk appetite would likely push AUD pairs around also. Read more.
The Kiwi was hit by a double whammy of downbeat data and risk aversion, although it did manage to chalk up some pips versus the euro.
Up next, the quarterly NZIER business confidence index is due, to be followed by top-tier catalysts from Australia and China. Don’t forget to keep tabs on sentiment when trading the Kiwi, too! Read more.