Weekly Overview – USD on the retreat
▸USD fell across the board on back of disappointing US data (weak housing starts, building permits overshadows decent industrial production) along with concerns over US politics, which we expect will continue to weigh heavy on the USD. Markets have starting to eye a potential dovish Fed on the June meeting.
▸US stocks are lower for the month, while Europe is performing well with Spain still outperforming. No signs of “Sell in May and Walk Away” is present currently.
▸Gold pushing higher on back of weaker USD, with AUD and NZD following suit. Oil going higher ahead Thursday’s OPEC meeting, pushing bids in CAD and NOK.
▸Volatility has come back a bit since last week, but we are still in a very low vol environment.
▸This week will start out slow with German IFO and US New Home Sales being the main points ahead of the FOMC minutes on Wednesday. UK GDP will be interesting on Thursday and should create some stir in the markets, while US GDP on Friday will finish off the week.
▸Bank of Canada releases rates on Wednesday, but we do not expect any changes in the leading interest rates.
See our weekly overview here!: 20170522 – weekly
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