USD - United States Dollar
An uptick in US manufacturing activity in May helped the US dollar edge above five-month lows. The US Dollar Index was up 0.26% this morning, trading at 90.07 at the time of writing.
The US Institute for Supply Management (ISM) claimed on Tuesday that manufacturers are struggling to cope with a boost in orders due to shortages in parts and labor. The dollar initially slipped on the news before climbing back up modestly.
Investors are currently fixated on Friday, as US Federal Reserve Chair Powell is expected to speak and the May employment figures are released. With two such important events in one day, it is likely we will experience some US dollar volatility.
Inflation in the eurozone rose sharply last month to 2%, which is just above the European Central Bank’s target. Despite the recent worry around inflation, the ECB have stated that they will not overreact and that it is not the right time for a rate change. This will continue to weigh on the euro. EURUSD was down slightly 0.13% at 1.2197 at the time of writing.
The pound moved lower against the dollar, steadying at the $1.41 range after briefly touching a three-year high on Tuesday. GBPUSD was trading at 1.4159 at the time of writing. GBPUSD increased by 2.65% in May and 0.3% in April, however, has been very range bound over the past two weeks. Analysts are predicting a sharp spike in COVID-19 variant cases over the coming days after a bank holiday where so many travelled. If the UK lockdown does end on June 21st, expect a rally in GBP-based currency pairs.
1.216 - 1.225 ▼GBP/USD:
1.411 - 1.418 ▲AUD/USD:
0.771 - 0.777 ▼USD/CAD:
1.201 - 1.209 ▼