Temporary Pause for the Dollar After a Four-Day Winning Streak

Temporary Pause for the Dollar After a Four-Day Winning Streak: The dollar index fell to 104.8 on Friday, pausing after four consecutive sessions of gains,
as traders continue to assess the timing of the Federal Reserve’s first interest rate cut.

 

Content

Key Events and Economic Data Expected This Week
Oil Rebounds

Temporary Pause for the Dollar After a Four-Day Winning Streak

 

 

 

 

Key Events and Economic Data Expected This Week

In the United States, investors will closely watch the Personal Consumption Expenditures (PCE) Price Index,
personal income and spending, and speeches from several Federal Reserve officials.
Additionally, attention will be paid to the second estimate of Q1 GDP growth, corporate earnings,
CB Consumer Confidence and pending home sales.
Globally, the focus will be on inflation rates in Germany and the Eurozone.
GDP growth rates for Switzerland and Canada will be released, along with unemployment rates in the Eurozone.
Key indicators to watch include Germany’s GfK Consumer Climate Index and China’s NBS Manufacturing and Services PMIs.
Finally, in Japan, the focus will be on Governor Ueda’s opening remarks at a Bank of Japan-hosted conference,
along with consumer confidence data, Japan’s CPI, retail sales, unemployment rate, and industrial production.

 

Oil Rebounds from a Three-Month Low, Records Weekly Loss

West Texas Intermediate (WTI) crude futures rose 1.1% to settle at $77.72 per barrel on Friday.
Still, they recorded a 3% weekly loss as U.S. economic data strengthened expectations that
interest rates may remain high for an extended period, hurting the U.S. economic outlook and energy demand.
Additionally, some Federal Reserve officials indicated readiness to raise interest rates if inflation rises,
according to the latest FOMC minutes. U.S. Energy Information Administration data showed an unexpected
increase in U.S. crude inventories last week.
However, a positive note regarding U.S. gasoline demand reached its highest level in November,
providing some support for oil prices ahead of the U.S. summer driving season.
With the focus shifting to the rescheduled OPEC+ meeting on June 2 (previously scheduled for June 1),
market participants await potential extensions of production cuts by key producers to address global oversupply concerns and support prices.

 

 

 

Temporary Pause for the Dollar After a Four-Day Winning Streak

The dollar index fell to 104.8 on Friday, pausing after four consecutive sessions of gains,
as traders continue to assess the timing of the first interest rate cut by the Federal Reserve.
Global PMI data from S&P in the United States showed strong business activity and increased price pressures in the U.S.
In May, coupled with the hawkish stance from the FOMC minutes, prompting investors to push back rate cut expectations.
The probability of easing in December has now risen to about 82%.
The dollar declined against the euro, the British pound, and the Australian dollar.
Over the week, the dollar gained approximately 0.3%.

 

Temporary Pause for the Dollar After a Four-Day Winning Streak

The most important economic data and news expected next week

The most important economic data and news expected next week

Next week from the US, investors will be closely monitoring PCE price indices
personal income and spending data, and speeches from various Federal Reserve officials.

 

Topics

US data reports

Euro

US stocks

 

US data reports

 

Pivotal metrics such as the ISM Manufacturing PMI,
the second estimate of the GDP growth rate, durable goods orders,
consumer sentiment, and new and pending home sales will also be under scrutiny.
At the international level, attention will be drawn to inflation rates in Japan, Australia and the Eurozone.
Emphasis will also be placed on the GDP growth rates of Turkey, Switzerland and Canada.
Furthermore, manufacturing PMIs for pivotal countries
such as China, Russia, Switzerland and Canada will provide
insights into the health of their respective industrial sectors.
Finally, markets will await the interest rate decision from the New Zealand central bank,
and unemployment rates in Germany, Mexico, Japan and the Eurozone.

 

Euro witnessed strong gains during last week’s trading

The euro witnessed a rise in the European currency market on Friday against a group of global currencies,
as it maintained its gains for the eighth consecutive day against the US dollar,
and approached its highest level in three weeks.
The euro is preparing to achieve outstanding weekly performance in 2024,
given the decline in the possibility of a cut in interest rates in the eurozone next April.

These prospects declined this week after a series of positive economic data in the Eurozone,
and more hawkish statements from European Central Bank leaders,
reduced fears of widening the current interest rate gap between Europe and the United States.

 

 

US stocks await US consumer confidence

The markets are awaiting the release of the US Consumer Confidence data (CB),
which is scheduled to be released during next Monday’s trading,
as economists expect the upcoming numbers to vary to be consistent
with the previous reading of around 114.8, as an actual reading higher
than 114.8 will strengthen the position of stocks,
whose indicators are moving in positive pricing as a result of
the good numbers of corporate results and also
The strength of the labour market and the strength of the American consumer?

 

 

The most important economic data and news expected next week