In their May 2018 Currency Outlook report, Tempus, an exchange rate and global payments company, provides a detailed report including the following topics and sections:
In Brief
- First quarter U.S. GDP showed higher level of growth than anticipated
- The USD appreciated 2.4% in April
- GBP sunk due to Brexit uncertainties
- Euro-zone’s economic recovery has reached possible peak
- With fading fears of a trade war and developments that point toward peace in Korea help boost the USD
In Focus
The USD is just more than one half of a percent away from erasing losses.
The View – Improved U.S. economic outlook merits USD going up
- In spite of some wounds after financial crisis, after a decade, US economy has achieved healthy level of economic activity
- Worries over trade term details and NAFTA could mean appreciation of the USD
- U.S. retail sales jumped to their best level since the end of 2017
- Favorable markers were positive and better than expected for Price Index figures, Wages, Durable Goods and building permits increased above a zero-growth forecast
- No clarity was revealed relative to NAFTA in April and this pressure was seen in the value of the Mexican Peso, just ahead of the July Mexican presidential elections
- With all that is happening in Europe and the UK, the USD is likely to benefit
IBC Members can download the complete Currency Outlook from the members-only section of the IBC website under the Special Reports section. IBC membership is free for all regular IHA members – to learn more and to join, visit the IBC membership information page.
