Counter currency drivers and risk sentiment is likely the reason why we saw the Greenback draw in buyers for the week, pushing it to one of the top spots among the major currencies.
United States Headlines and Economic data
Monday:
- Chicago Fed National Activity Index (CFNAI) Indicates Growth in March to -0.15 in Mar. from -0.31 in Feb.
- Existing-home sales slide nearly 5% in March as the on-again-off-again housing market retreats
- China stocks fall most in nearly 4 weeks on worries Beijing may slow policy easing – The idea of China slowing its stimulus efforts may possibly slow down global growth rates as well. This is likely the catalyst for global risk-off sentiment, and possibly why the Greenback saw broad support as well as weakness in commodity currencies like the Aussie and Kiwi.
Tuesday:
- Trump vows to ‘reciprocate’ against EU tariffs after Harley reports 26.7% drop in profit
- FHFA House Price Index Up 0.3 Percent in February; Up 4.9 Percent from Last Year
- U.S. new home sales hit one-and-a-half-year high on lower mortgages, prices
Wednesday:
- Lighthizer, Mnuchin to hold trade talks next week in Beijing: White House
- Brexit delay has not helped German business climate: Ifo economist – This weak business sentiment update for Germany likely drove down the euro for the week, which often has the affect of supporting the Greenback given their large trading relationship; this may have been one of those cases.
Thursday:
- US weekly jobless claims post biggest rise in 19 months
- Durable-goods orders surge 2.7% to 7-month high, business investment rebounds
Friday:
- U.S. Growth of 3.2% Tops Forecasts on Trade, Inventory Boost – Initially a boost to the Greenback due to the headline number, but the deceleration in price growth (0.8% in Q1 vs. 1.7% in 2018 Q4) is likely the reason why the rally reverse, and possibly on the idea that the decline in trade deficit and the business stockpiling will not carry forward to future quarters.
