Increase in demand for haven assets pushes commodity currencies lower
Data out of China showed Retail Spending grew slower than expected in April. Its release boosted demand for haven assets supporting the US dollar. USD reversed initial gains and trades largely unchanged from Friday's close. The Japanese yen is trading higher supported by this shift in risk sentiment. Commodity currencies are lower across the board with the New Zealand kiwi leading losses.
NAHB/Wells Fargo Housing Index (May), Empire State Manufacturing Survey (May), Canada Housing Starts (Apr)
US Housing Starts (Apr), Eurozone Employment, GDP (Q1)
FOMC minutes (April 28 meeting), Canada CPI (Apr), Eurozone CPI (Apr)
Initial Jobless Claims (May 15), Philadelphia Fed Business Outlook (May), Leading Economic Indicators
Canada Retail Sales (Mar)
May 17, 2021
EUR/USD 1.2145 GBP/USD 1.4096 USD/CAD 1.2093 AUD/USD 0.7754 USD/JPY 109.15 USD/CNH 6.4426 USD/ILS 3.2792 USD/MXN 19.8775 USD/CHF 0.9014 USD/INR 73.2185 USD/BRL 5.3000 USD/SGD 1.3356 USD/DKK 6.1225 USD/SEK 8.3440 USD/NOK 8.2802
Traders shifted towards risk-off trading following weak data out of China which showed slow growth for retail sales. The Bloomberg dollar index strengthened slightly trading about 0.1% higher before reversing gains and trading largely unchanged.GBPSterling is holding above $1.41 as the currency strengthens amidst relaxed virus restrictions in the nation. The pound erased losses from the Asia trading session as traders are optimistic on the news of looser restrictions.EUR
The EUR/USD remains largely unchanged, trading within a tight 45 pip range.CAD
USD/CAD hit a six-year low last week at 1.2050. Earlier in the session the currency pair traded higher as oil prices stabilized and demand for haven assets increased. The loonie is currently trading stronger, maintaining its hold below the 1.21 level.ASIA/PACIFIC
The US dollar is about 0.1% weaker than the JPY as lower risk appetite supports the yen. NZD/USD had its biggest lost since Wednesday, dropping 0.5% as the Australian dollar fell 0.2%.
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