EUR/USD
The euro was set for a three-week decline before data that may show German business confidence fell, adding to signs of regional weakness that may prompt the European Central Bank to boost stimulus as soon as next month. The 18-nation currency traded near a three-month low versus its U.S. peer amid concern euro skeptic parties may seek to gain power in elections for the European Union Parliament. The dollar headed for gains against most of its 16 major counterparts before a U.S. report that may indicate an increase in new home sales last month. Today the euro was at 1.3654 after falling 0.2% yesterday to 1.3656. It touched 1.3635 on May 21, the weakest since February 13. The euro has fallen 0.3 percent since May 16, extending a 1.3 percent decline in the previous two weeks. The yen is set for a 0.3% weekly drop.
GBP/USD
The sterling drop for the first time in about a week versus the U.S. dollar after reports showed first-quarter Gross Domestic Product matched economist estimates and Britain’s deficit was bigger in April than forecast. The pound dropped 0.3% to $1.6858 yesterday after rising 0.8% in the previous five days. Data from the Office for National Statistics in London showed Britain’s economy grew 0.8% in the three months through March, unrevised from an initial estimate. Net borrowing last month was 11.5 billion pounds compared with 9.5 billion pounds a year earlier, a separate report showed. The U.K. currency has surged in the past year as data that exceeded the Bank of England’s forecast prompted investors to bring forward their expectations of the first interest-rate increase since 2007.
USD/JPY
The Japanese yen weakened slightly in Asia this morning amid a report released yesterday showed the U.S. home purchases increased in April as a bigger supply of properties lured buyers and raised prospects for a stronger spring buying season. The 1.3% gain, the first this year, pushed sales to a 4.65 million annualized rate, National Association of Realtors data said. The yen was traded at 101.86, losing 0.06%, to be its third straight daily loss.
USD/CAD
Following gains in January and February, Canadian retail sales edged down by 0.1% in March to $41.1 billion. Sales were lower at motor vehicle and parts dealers and clothing and clothing accessories stores. However, these declines were largely offset by gains at gasoline stations and food and beverage stores. A report released yesterday showed that In March, 509,800 people received regular Employment Insurance (EI) benefits, little changed from February. The number of beneficiaries has been relatively stable since May 2013, following a long-term downward trend that began in the summer of 2009. The change in the number of regular EI beneficiaries reflects various situations, including people becoming beneficiaries, people going back to work, and people no longer receiving regular benefits. The Canadian dollar gained about 0.05% yesterday, reaching the level of 1.0884 from 1.0914. Today, the loonie a little changed from 1.0895, fluctuated between 1.0899 and 1.0891.
