Weaker dollar blamed on commodity producers selling the greenback as markets await FOMC and economic data
April 30, 2019
The US dollar sold off overnight as commodity currencies outperformed and the euro received a boost from decent GDP data. The British pound is having its best day of the month on overall dollar weakness and optimism around cross-party Brexit talks. Much of the global financial markets will be closed tomorrow for May Day holidays. Japan remains on an extended Golden Week vacation.
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April 30, 2019
EUR/USD 1.1220 GBP/USD 1.3029 USD/CAD 1.3451 AUD/USD 0.7046 USD/JPY 111.41 USD/CNH 6.7405 USD/ILS 3.6050 USD/MXN 18.9960 USD/CHF 1.0196 USD/INR 69.5563
Month-end selling of US dollars pushed the greenback lower as markets await the release of Conference Board Consumer Confidence at 10:00 a.m. Eastern. Housing price data came in as expected this morning (+3%). With the FOMC announcement and press meeting tomorrow and Non-Farm Payrolls on Friday, traders will be adjusting positions and awaiting the data.GBP
The British pound strength today is attributed mostly to US dollar weakness as commodity companies sell dollars and buy their local currencies, including the pound.
Optimism on Brexit outshown a backlash from Tory member activists as more than 10% signed a petition for Theresa May to resign causing a meeting to be called to discuss the proposal. This move hasn’t been taken in 185 years.EUR
The euro strengthened overnight after Q1 GDP came in better than expected. However, the downtrend in the euro continues and is not far from the 2-year lows set yesterday.CAD
The Canadian dollar gave back earlier gains after GDP data for Q1 came in at -0.1% vs. expectation of zero. The loonie was stronger earlier on higher oil prices. Oil markets watched events in Venezuela where opposition leads staged an announcement of the end of the Maduro regime alongside some members of the military.ASIA/PACIFIC
Chinese renminbi strengthened after PMI data for April was somewhat lower than expected but above the 50 reading indicating growth.
Japanese markets remain closed for an extended Golden Week.
The Indian rupee strengthened on overall dollar weakness while the ongoing election in India tends to amplify any currency movements.
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