Forex Market Commentary for 20/5/2019
The euro fell on Friday, closing at 1.1158(-14 pips) against the greenback. However, the greenback was underpinned by local data and persistent US-Sino trade tensions during earlier sessions. These last couple of days, the US administration announced it will delay imposing tariffs on European cars’ imports, also that it reached an agreement with Canada and Mexico to remove tariffs on steel and aluminum, as President Trump is deterred to close the trade balance gap with the Asian giant. The EU released April inflation data at the end of the week, which resulted in line with the market’s expectations, with a modest uptick in core yearly inflation to 1.3% from the previous 1.2%. The number, however, was overshadowed by the US Michigan Consumer Sentiment Index, as the preliminary estimate for May came in at 102.4, the highest level in fifteen years and well above the expected 97.5. This new week will be mostly light in terms of macroeconomic releases, with the most relevant release being FOMC Meeting’s Minutes next Wednesday. This Monday, Germany ill release April PPI, while the EU will post an update on Current Account. The US will publish the Chicago Fed National Activity Index for April, while a couple of Fed authorities will offer different speeches.