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Monday 15th May 2017 was a day with light fundamental news and continuation of trends which started last Friday 12th May 2017, with the depreciation of US Dollar versus almost all its major counterparts. We had a rally in the commodities and this boosted also the Australian Dollar, which tends to move higher when commodities prices move higher.

US Dollar

With not any very important economic data yesterday, the reasons behind the depreciation of the US Dollar yesterday were some external factors. There was a strong rally in oil prices, and gold, and another poor reading from Empire Manufacturing Survey for the month of May 2017, which showed poor business and manufacturing conditions.

Empire Manufacturing Survey for the month

This adds to the weaker than expected Retail Sales and CPI readings we noticed on Friday 12th May 2017. Sometimes the forex market continues its trends, even in the absence of important news, just by focusing on what happened the previous days.

USD/CADThe main event however was the large rally in oil prices, followed by rally in commodities, which had as a result the Canadian Dollar to strengthen significantly as the USD/CAD moved lower from 1.3723 to 1.3528.

USD/CAD
USD/CAD downtrend

We do not know if the cyberattacks caused any geopolitical risk, but gold continued moving higher and so the Euro and Swiss Franc appreciated also versus the US Dollar, and so did also the Australian Dollar backed by the rally in commodities and British Pound.

EUR/USD
EUR/USD uptrend

eur/usd

So EUR/USD moved higher from 1.0920 to 1.0991, GBP/USD moved higher from 1.2872 to 1.2940, USD/CAD went down from 1.3723 to 1.3596, AUD/USD moved higher from 0.7380 to 0.7447 and USD/CHF lower from 1.0020 to 0.9956.

Japanese Yen

USD/JPYThe Yen was the only currency which showed some weakness yesterday and did not manage to appreciate versus the US Dollar as the USD/JPY moved higher from 113.09 to 113.86.

JPY/USD

This move happened although we had a strong reading for Machine Tool Orders for Japan, showing increased business confidence.

What can move FX market today?

 Consumer Price Index for the British Pound

Today we have important economic data mainly from the Euro-Zone, with Italian Gross Domestic Product, The Consumer Price Index for the British Pound, and the German ZEW Survey plus Euro-Zone Gross Domestic Product.

German ZEW Survey

There are also several readings related to US economic data. And it will also worth watching again if the rally in commodities will continue and US Dollar will continue being weak and depreciating.

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NOTE: This article is not an investment advice. Any references to historical price movements or levels is informational and based on external analysis and we do not warranty that any such movements or levels are likely to reoccur in the future.
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