Forex news for Canadian trade on May 31, 2021:
- Canada Q1 current account balance +$1.18B vs +$2.50B expected
- Canada April industrial product price +1.6% m/m vs +1.7% expected
- Germany May preliminary CPI +2.5% vs +2.3% y/y expected
- OPEC+ not expected to decide on output beyond July
- Draft communique: G7 leaders commit to use carbon pricing as a policy lever
Markets:
- Gold up $3 to $1906
- WTI crude up 60-cents to $66.91
- NZD leads, CAD lags
- S&P 500 closed, Canada's TSX down 0.4%
It was a holiday in the UK and US but it was also month end. That led to an illiquid market but with elevated flows. The result was a sharp drop in the US dollar at the end of the day in Europe.
Cable was the largest mover as it jumped to 1.4215 from 1.4175 in a one-way move before slowly giving back 10 pips over the remainder of the day. Moves in EUR/USD and USD/JPY were also sizeable while the commodity currencies mostly sat out the move.
Later though, we saw a similar type move in USD/CAD as it sank down to 1.2047 from 1.2065 in a very quick move. That drop was eventually erased.
May winds down with the pound as the leader and yen as the laggard in G10 FX. Expanding further, the rand was the best emerging market currency and the Turkish lira was at the bottom of the pile.
