The USD is trading mixed as its recent rally stalls following a series of weak global PMI reports from major economies. Markets are currently focused on geopolitical developments regarding Iran and a heavy slate of US economic surveys.
Key Takeaways
- 1.The USD rally is showing signs of flagging as the mid-May momentum slows and the DXY delivers modest losses for a second day.
- 2.Global economic data is softening, with PMIs from the Eurozone, UK, Australia, and Japan missing expectations or showing contraction.
- 3.The CAD remains stretched and technically 'cheap' compared to underlying fundamentals despite soft domestic CPI data.
Table of Contents
- Overview
- Eurozone PMIs Weaken
- USD Narrowly Mixed in Limited Trade
- FX Market Update
- USDCAD (1.3766)
- USDCAD short-term technicals
- EURUSD (1.1620)
- EURUSD short-term technicals
- GBPUSD (1.3424)
- GBPUSD short-term technicals
- USDJPY (159.12)
- TODAY'S CALENDAR
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Authors
Shaun OsborneEric Theoret
Securities
DXYUSDCADEURUSDGBPUSDUSDJPY
Themes
Global Economic SlowdownGeopolitical Tensions (Iran)Monetary Policy Divergence vs. Inflation Focus
Regions
North AmericaEuropeUKUnited StatesCanadaJapan