The dollar has strengthened against sterling and the euro this morning. This looks as much to do with Europe facing economic headwinds and the UK a delay to reopening than anything decisive happening in the US.
However, we could see movements later in the week as investors consider economic data on potential inflationary pressures building.
The big event of the day will be the USA’s balance of trade for April, where anything less than the $69bn deficit will be seen as positive. We have to wait until Thursday for the big data event of the week, inflation and jobless claims.
For more on currencies and currency risk management strategies, please get in touch with your Smart Currency Business trader on 020 3918 7255 or your Private Client trader on 020 7898 0541
