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The U.S. dollar was a net loser on the week thanks to a combo of early global risk-on vibes (as the economies around the world slowly re-opened), gloomy economic updates in the U.S., and more Fed stimulus.

A geopolitical flare up did bring back some buyers on Friday, but not enough to recover the a losing week for USD bulls.

Overlay of USD Pairs: 1-Hour Forex Chart
Overlay of USD Pairs: 1-Hour Forex Chart
USD Weekly Performance from MarketMilk
USD Weekly Performance from MarketMilk

United States Headlines and Economic data

Monday:

Contraction in Texas Manufacturing Sector Worsens

Fed expands municipal debt purchase plan to allow smaller counties and cities to participate

We saw a positive lean in global risk sentiment at the beginning of the week as more countries were looking at re-opening their economies.  This was a likely contributor to weakness in the U.S. dollar given its “safe haven” status until the Thursday session.

Tuesday:

More U.S. states ease lockdown restrictions

The Richmond Fed composite index plummeted from 2 in March to −53 in April, its lowest reading and largest one-month drop on record

The Conference Board Consumer Confidence Index for the U.S. fell to 86.9 in April, down from 118.8 in March

U.S. Home prices were gaining serious strength just before coronavirus shutdown, up 4.2% annually per Case-Shiller

U.S. goods trade deficit rises as auto exports tumble

Wednesday:

US GDP shrank 4.8% in the first quarter amid biggest contraction since the financial crisis

U.S. Pending home sales tank nearly 21% in March

Fed pledges to keep rates near zero until full employment, inflation come back – Not a major market mover but the confirmation of stimulus for the foreseeable future likely continued to put pressure on the Greenback, which was mostly reflected in its performance against the higher-yielding currencies.

FOMC’s decision highlights

Thursday:

Trump says China will ‘do anything they can’ for him to lose election

U.S.-China relations are bad and getting worse, with major ramifications for trade and investment — and the U.S.’s presidential election

US weekly jobless claims hit 3.84 million, topping 30 million over the last 6 weeks

US consumer spending plunges 7.5% in March

Excluding food and energy, the PCE price index decreased 0.1% in March.

Chicago PMI fell to 35.4 in April vs. 47.8 previous

Federal Reserve to expand reach of Main Street lending program

Big spike lower in the Greenback against some of the majors during the U.S. session, likely on the round of negative U.S. economic updates, and possibly on the month-end fixing portfolio managers have to make to portfolios.

Friday:

U.S. manufacturing skids to 11-year low in April as orders sink: ISM

IHS Markit U.S. Manufacturing PMI: Sharpest contraction in output in series history due to COVID-19 impact

U.S. construction spending unexpectedly rises in March

U.S. rates to stay low, Fed will need to do more, Kaplan says

Wall Street slides at open as Trump warns of new tariffs on China – the Greenback somewhat bounced back during the Asia session off of these headlines, falling into its “safe haven” role before the end of the week. Unfortunately it wasn’t enough to bring USD into the green against any of the major currencies to become the biggest loser of the week.