Can the US Dollar Perform Outstanding Performance in Early May? - Kakiforex | Forex markets for the smart money. Can the US Dollar Perform Outstanding Performance in Early May? Can the US Dollar Perform Outstanding Performance in Early May?

May 3, 2021

Can the US Dollar Perform Outstanding Performance in Early May?

 Closing trading for April, the US dollar was seen strengthening last Friday after moving weak throughout the week.


In addition to the factor of profit-taking activity by market players, the US dollar was also supported by consumer spending data that soared above expectations.


Meanwhile, the stock market also declined with major indices posting losses. Preliminary indications for risky market sentiment also supported the strengthening of the US dollar.


However, overall, the depreciation of up to 2.4% of the US dollar in April is rated as the lowest monthly performance since July 2020.


And as usual for the first week of the month, the U.S. NFP employment data report will be published and will be a market -focused event.



Market movements at the beginning of the week are expected to slow as most central banks are still on holiday.


Despite the easing, concerns over Covid-19 are still hovering in the market. Preliminary studies show that just one injection of the vaccine is not enough to strengthen protection against new variations of the more aggressive virus.


With limited supplies, many countries choose to continue vaccination programs even with just one injection to meet the needs of large populations.


If market sentiment this week continues to be risky, commodity currencies such as the Australian dollar and the New Zealand dollar are set to receive tempias.


In fact, the Canadian dollar, which is sensitive to the crude oil market, will also face pressure due to gloomy demand for fuel. Oil prices were seen declining last Friday after reaching a 1 -month high.


Gold, meanwhile, closed slowly around the $ 1,770 per ounce level after moving horizontally below the $ 1,800 level for 2 weeks.