Currency Market Trend Analysis: May 14, 2018

Ryan May 14th, 2018

By The Numbers: Your FX Week In Review

Foreign currency value versus USD is decreasing

Foreign currency value versus USD is increasing

*Indicators show the percent change over the past week.

Currency Calendar

Date	Releases / Holiday
May 15, 2018	Eurogroup Meeting	EUR
May 15, 2018	GDP QoQ/YoY	EUR
May 15, 2018	ILO Unemployment Rate	GBP
May 15, 2018	Inflation Report Hearings	GBP
May 15, 2018	Retail Sales MoM	USD
May 16, 2018	EcoFin Meeting	EUR
May 16, 2018	Consumer Price Index MoM/YoY	EUR
May 16, 2018	Housing Starts	USD
May 17, 2018	ADP Employment Change	CAD
May 17, 2018	Canadian/Foreign portfolio investment	CAD
May 17, 2018	BoC Review	CAD
May 18, 2018	Producer Price Index MoM/YoY	EUR
May 18, 2018	Retail Sales MoM	CAD
May 18, 2018	Consumer Price Index MoM/YoY	CAD

Upcoming bank holidays and impactful report releases for select countries.

Market Analysis

Canadian Dollar

CAD/USD opened last week at 0.7785 and closed at 0.7815 – appreciating by 0.39% with the help of the rally of crude oil prices.

President Trump’s decision to abandon the Iran Deal has helped bring oil prices back up and helped the CAD recover previous losses.

Along with the liquid gold increase, Canada also experienced an increase in full-time employment and wages. A Bank of Canada review, Retail Sales and the CPI is up later this week.

1. ADP Employment Change: Thursday, May 17^th

2. BoC Review: Thursday, May 17^th

3. Retail Sales MoM: Friday, May 18^th

4. Consumer Price Index MoM/YoY: Friday, May 18^th

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British Pound

GBP/USD opened last week at 1.3530 and closed at 1.3542 – appreciating by 0.09% with rates remaining unchanged and US data coming out weak has let the GBP have a small jump last week.

With the BOE on-hold with raising rates, the economic state is not in ideal conditions for a rise. Investors say a rise might be more likely in August or November. All eyes are on the unemployment rate and inflation reports coming out on Tuesday along with the royal wedding on Saturday.

1. ILO Unemployment Rate: Tuesday, May 15^th

2. Inflation Report Hearings: Tuesday, May 15^th

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European Central Bank Euro

EUR/USD opened last week at 1.1965 and closed at 1.1945 – depreciating by 0.17% due to deceleration of economic growth in the EU.

The US and EU both came out with lower than expected economic data last week, bringing down the pair. There could be some light on the horizon with the upcoming data releases in the EU. Most investors will be waiting for the inflation reports from the EcoFin meeting on Wednesday to know the full state of the EU.

1. Eurogroup Meeting: Tuesday, May 15^th

2. GDP QoQ/YoY: Tuesday, May 15^th

3. EcoFin Meeting: Wednesday, May 16^th

4. Consumer Price Index MoM/YoY: Wednesday, May 16^th

5. Producer Price Index MoM//YoY: Friday, May 18^th

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About the Author

Remon Shehata - Data Analyst

Remon educates corporate clients on foreign currency markets lending industry best practices that enhance client knowledge and create specialized solutions that fit each business. Interested in having a custom international payments strategy or foreign exchange risk plan? Request A Call

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