United States 4-Week Bill Auction: 3.605% vs previous 3.61%

GBP/USD trades under pressure on Thursday, weighed down by a stronger US Dollar (USD) and rising political uncertainty in the United Kingdom. At the time of writing, the pair is trading around 1.3482, down nearly 0.30% and remaining on the back foot for a third consecutive day.

Silver (XAG/USD) trades lower on Thursday, falling 3.20% to around $84.70 at the time of writing as investors take profits after the metal’s recent rally.

MUFG’s Lee Hardman explains that the Pound (GBP) is softer despite stronger-than-expected United Kingdom (UK) Gross Domestic Product (GDP), as markets anticipate slower growth later in the year due to the energy price shock.

Jeffrey Schmid, President of the Federal Reserve (Fed) Bank of Kansas City, said that Continued inflation is the most pressing risk to the economy.

United States EIA Natural Gas Storage Change meets forecasts (85B) in May 8

TD Securities strategists turn less bearish on the US Dollar (USD) in the near term as the Federal Reserve (Fed) stays on hold and US data, equities and positioning support a range-bound Dollar.

United States Business Inventories registered at 0.9% above expectations (0.8%) in March

Societe Generale strategists note that USD/BRL has extended its broader downtrend after breaking a recent consolidation, with an interim low near 4.88 and a sharp rebound.

NZD/USD falls to around 0.5920 on Thursday at the time of writing, down 0.28% on the day, as the New Zealand Dollar (NZD) remains under pressure against a stronger US Dollar (USd).

BNY’s Geoff Yu highlights that the Japanese Yen (JPY) remains significantly undervalued on a Real Effective Exchange Rate (REER) basis even as Euro (EUR) and US Dollar (USD) valuations have converged.

UOB’s Senior Economist Alvin Liew revises its Federal Reserve (Fed) outlook following hotter United States (US) inflation data.

EUR/GBP trades choppy on Thursday, with the British Pound (GBP) modestly outperforming the Euro (EUR) on the back of resilient UK economic data, while traders also assess growing political noise in the United Kingdom.

Rabobank’s FX Strategy team notes that NOK/SEK has gained around 11% year-to-date as the Norwegian central bank turned more hawkish while the Riksbank stayed on hold. They highlight sticky inflation and Norway’s energy-exporter status as supportive for the Norwegian Krone.

Russia Foreign Trade came in at $13.966B, above forecasts ($11.8B) in March

DBS Bank’s Philip Wee reviews recent FX volatility through the Pound, noting that GBP has been more resilient than EUR and CHF since Operation Epic Fury, helped by the UK’s lower exposure to the energy shock and higher policy rates.

According to a report from the US Department of Labour (DOL) released on Thursday, the number of US citizens submitting new applications for unemployment insurance increased to 211K for the week ending May 9.

Retail Sales in the United States (US) rose by 0.5% on a monthly basis in April to $757.1 billion, the US Census Bureau reported on Thursday. This reading followed the 1.6% increase (revised from 1.7%) recorded in March and came in line with the market expectation.

United States Import Price Index (YoY) climbed from previous 2.1% to 4.2% in April

United States Continuing Jobless Claims below expectations (1.79M) in May 1: Actual (1.782M)

United States Export Price Index (YoY) climbed from previous 5.6% to 8.8% in April

United States Retail Sales (YoY) up to 4.9% in April from previous 4%

United States Retail Sales Control Group: 0.5% (April) vs previous 0.7%

Canada Wholesale Sales (MoM) came in at 1.9%, above expectations (1.4%) in March

United States Retail Sales ex Autos (MoM) came in at 0.7%, above expectations (0.6%) in April

United States Export Price Index (MoM) above expectations (1.1%) in April: Actual (3.3%)

United States Import Price Index (MoM) registered at 1.9% above expectations (1%) in April