Global Power | Local Knowledge | Uniquely Personal

Smats FX Weekly Market Report | Monday 11 May 2020

SMATS FX is proud to provide our weekly analysis of currency markets and exchange rates.
Smats FX Weekly Market Report | Monday 11 May 2020


 SMATS FX is proud to provide our weekly analysis of currency markets and exchange rates.




It was a topsy-turvy week for the US Dollar last week as historically bad economic updates saw the Greenback end in the red last week. This week members of the Federal Reserve will be giving speeches throughout the week as USD traders should keep their ears out for any updates. On Tuesday, analysts expect the inflation rate will drop by 0.8% month-on-month while the core figure will show a drop of 0.3%. Probably the most important data release for the Greenback comes on Friday where we expect April’s retail sales to have dropped by almost 12%.

Influences on HKD, SGD & AED

There is distinct lack of data out of our exotic currencies this week, the sole data release will be Hong Kong’s GDP growth rate on Friday, it is expected to have declined by 5.3% for the 1st quarter of the year. Coronavirus updates and Dollar movements are likely to be the main catalyst this week.


The Australian Dollar topped the charts last week as global lockdown restrictions begin to ease, the AUD also benefitted from positive global risk sentiment and surprisingly good economic updates. A couple big data releases out of Australia at the beginning of the week with the NAB business confidence for April is expected to fall from -66 to -75 index points. Then the Westpac consumer confidence index has been forecast to fall from 75.6 to 65.0.


The Kiwi Dollar rode the wave of positive risk sentiment as it follows suite with the rallying AUD. The NZD is floating on better than expected job data, but the Reserve Bank of New Zealand interest rate decision on Wednesday could change things up should the central bank decide to slash rates, but no change is expected from the current 0.25%. Friday sees the business NZ PMI for March set to drop into contraction territory as it is expected to fall from 53.2 to 46.0.


Horrific business sentiment numbers and economic updates from Europe had traders fleeing as the Euro saw nothing but red last week. The most prominent catalyst for the Euro this week should be the GDP 2nd quarter estimate that is forecast to show a contraction of 3.8% which is due out on Friday. The European Central Bank will be giving their economic bulletin in addition to members that will speaking throughout the week. Some other lower-tier Eurozone data is also going to be sprinkled out throughout the week, but none are forecast to have much of an impact on the rates.


Disastrous UK economic updates and no-deal Brexit fears sent the British Pound tumbling down last week. Wednesday is set to be a big day for the Pound with the release of their Balance of Trade figure for March, (Previous £-2.8 B, Expected £-1.7 B), as well as the GDP preliminary growth rate for Q1 (Previous 0.0%, Expected -2.4%). At the same time, manufacturing numbers as well as industrial production figures are set to be released. Bank of England Governor Bailey is set to participate in a webinar related to Brexit and COVID-19 which is likely to influence the price of the Sterling.

Transfer your money internationally with ease at our special VIP rates at SMATS FX:

DISCLAIMER: All information provided is of a general nature only and does not take into account your personal financial circumstances or objectives. Before making a decision on the basis of this material, you need to consider, with or without the assistance of a financial adviser, whether the material is appropriate in light of your individual needs and circumstances. This information does not constitute a recommendation to invest in or take out any of the products or services provided by SMATS Services (Australia) Pty Ltd or Australasian Taxation Services Pty Ltd.

COPYRIGHT: All information provided is protected by international copyright laws. You may not copy, reproduce, distribute, publish, display, perform, modify, create derivative works, transmit, or in any way exploit any such content, nor may you distribute any part of this content over any network. Copying or storing any content is expressly prohibited without prior written permission of SMATS Group or the copyright holder identified in the individual content's copyright notice. For permission to use the content on please contact

Subscribe Now