The press expresses suspicions and doubts about the rapid recovery of the Chinese economy. Hints about manipulating statistics figures are increasingly heard. If the fears are not confirmed, then the positive trend of Asian currencies will resume.
The first week of May is a traditional long weekend in Japan, Singapore and the UK. The month is known for another tradition – sales on stock markets, which can lead to a weakening of a number of national currencies and, as a result, to the strengthening of the US dollar.
The US currency will begin to strengthen after the next week’s flat. The economies of Asia and the European Union continue to attract investments in the hope of an early recovery, which translates into increased demand for the euro, yen and other major currencies.
If economic indicators and political decisions of the next week repeat the trend of the previous week, the dollar index may continue to fall, at least until the next weekend.