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May 19, 2023 11:33 GMT
USD Strength Abates As Fed's Powell In Focus
LATAM
- Brazil March economic activity and Mexico March retail sales are the key LatAm data points on Friday. A light global data slate should keep focus on the speaker calendar - with Fed's Powell, Williams & Bowman scheduled as well as ECB's Schnabel, Lagarde and de Cos.
- The greenback sits softer early Friday as the currency pulls back a small part of this week's rally. Nonetheless, the USD Index remains stronger on the week by around 0.7%.
- As noted earlier, the PBoC re-stated their vow to curb speculation in the FX market, urging institutions to maintain FX market stability. The statement sees curbing of speculation "when necessary". USD/CNH traded to fresh daily lows on the back of the headlines – with the pair printing as low as 7.0121. Yesterday's Asia-Pac session low is next in focus at 7.0078 ahead of the 7.00 handle.
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