22 May: US$ slides on Trump concerns although stocks recover. FOMC minutes, PMIs & OPEC Meeting, this weeks focus: FX Charts

The dollar remained under broad pressure heading into the weekend, making it the worst week in over a year as the Trump saga continues. The Euro led the way higher on Friday, underpinned by growing expectations of a hawkish slant to the ECB’s June meeting and a possible winding down of the expansive monetary stimulus program. Cable was not far behind and closed the week firmly back above 1.3000. Despite the Trump issues, US stocks continued their recovery following Wednesday’s sharp selloff, while and commodities were firm, underpinned by the softer dollar, with WTI finally breaking back above 50.00.

There is a fair bit going on this week, particularly on Tuesday, when both the EU and the US will release a host of secondary data, including the flash PMIs. The most important event of the week though will be on Wednesday, with the release of the FOMC Minutes, when traders will again attempt to guess the likelihood of a June rate hike from the Fed. Monday will be quiet from a data perspective, while other highlights of the week will include the German IFO, the US New Home Sales  and Richmond Fed Mfg Index (Tue), the US Existing Home Sales (Wed), Wholesale Inventories and Kansas Fed Mfg Activity  (Thur),  and the US Durable Goods Orders, US Personal Consumption/Expenditure  and Michigan Consumer Sentiment Index (Fri). Also note that the OPEC Meeting is due this week and if the cartel can reach their proposed agreement to cut production, then WTI could head sharply higher.