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The U.S. dollar ended the week mixed but net negative in a week filled with lots of Fed speak and historically bad U.S. economic updates.  It was likely the global move to end lockdown restrictions that had traders feeling a bit more risk friendly on Thursday to sink the Greenback into the weekend.

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:

U.S. Treasury’s Mnuchin says Trump eyeing restaurant tax changes, travel boost
NY Fed says corporate credit facilities will begin purchases in May
U.S. factory orders plunge 10.3% in March
Trump administration pushing to rip global supply chains from China: officials
Fed’s Barkin: New business practices, job retraining key to U.S. recovery
US Treasury seeks to borrow a record $3 trillion this quarter
U.S. mortgage firms push for support as borrowers halt payments
Fed says it will start buying corporate bond ETFs in early May


A fresh round of negative global economic news (global factory activity sinks to new lows) and renewed tensions between China and the U.S., had traders leaning in risk-off mode to start the week, likely contributing the Greenback’s net positive start on Monday.

Tuesday:

U.S. trade deficit soars 12% in March as coronavirus slams exporters and tourism
U.S., UK launch post-Brexit video trade talks amid coronavirus recession
IHS Markit U.S. Services PMI fell to 26.7 in Apr. vs. 39.8 in Mar.
April’s ISM nonmanufacturing index comes in at 41.8, vs 40 expected
Fed’s Bostic: Pace of U.S. economic recovery will vary across nation
Fed’s Evans sees return to economic growth after June but admits more pessimistic scenarios are almost as likely
Fed Vice Chair Clarida says more support may be needed, but economy to rebound next quarter

Wednesday:

US private payrolls drop by 20.2M in April, the worst job loss in the history of ADP report
Fed’s Barkin: Best ‘stimulus’ would be consistency about reopening protocols
Dallas Fed’s Kaplan expects ‘substantial number’ of bankruptcies amid oil crunch

Thursday:

U.S. job-cut announcements surge in April to record, outplacement firm Challenger says
US weekly jobless claims total 3.169 million, bringing seven-week tally to 33.5 million

Global risk sentiment shifts positive during the late U.S. session, likely on the recent theme that more economies were the path to end lockdown restrictions.  Better-than-expected Chinese trade data and more positive news on Gilead Sciences’ COVID-19 drug remdesivir likely played a factor as well, correlating with the U.S. Dollar’s bearish reversal going into the Friday session.

Friday:

U.S. labor market shatters post World War 2 records as coronavirus lockdowns bite – No big reaction to the latest jobs numbers as these were highly expected to be the worst ever. Traders are focused on lockdown restrictions easing and whether or not the economy can recover quickly
March U.S. wholesale sales were $475.0B, down 5.2% from February
Top U.S., China trade officials agree to strengthen cooperation
Trump: ‘No rush’ to negotiate phase 4 coronavirus stimulus bill