The USD remained well demanded on Monday session, gaining more than 0.30% against a basket of major currencies, with April closing as its best month since Nov 2016. The USD benefited from a risk-off environment amid reports signaling Beijing won’t discuss some of Washington’s demands on trade. While the USD remained firmly bullish towards the end of the US session, US Equity Indexes and US treasuries failed to hold in positive territory.
The USD is now approaching the year to date highs reached on January, which could act as pivotal levels, that if broken to the upside, should fuel further short-term strength.
In relation to the data released on Monday, U.S. personal income came slightly lower than expected (0.3% vs. estimate of 0.4%) while personal spending and PCE came in line with expectations.
Going forward, traders will pay attention to the Economic data calendar for the rest of the week, with important Production and Employment economic reports, a Federal Reserve rate decision and the quarterly refunding announcement expected in the next couple of days.