US dollar under pressure
The US dollar has reversed course and is coming under pressure as new York trading picks up. There was a persistent bid in the US dollar late yesterday and that continued through Asia and Europe. It was a counterintuitive move because it came as yields were falling.
Now some of the air is coming out and I’m watching USD/CAD particularly close as oil breaks out and it threatens 1.20.
On the economic calendar today, the data slate is light and starts with Canadian April building permits at the bottom of the hour.
The main event is the Fed’s Beige Book at 1800 GMT. Expect plenty of commentary about capacity constraints and rising prices. That could spook the market.
On the central bank docket it’s the ECB’s Weidman on climate and Lagarde accepting a prize. For the Fed it’s Harker, Bostic, Evans and Kaplan.