After losing ground against most currencies over the last few weeks, the US dollar regained strength last Friday, driven by higher-than-expected US personal income (+21.1% MoM in March; vs consensus: +20.3%; previous: -7%) and personal spending (+4.2% MoM in March; vs consensus: +4.1%; previous: -1%), as most Americans received stimulus checks under the American Rescue Plan Act. The greenback was also supported by Q1 GDP growth figures, which indicated a slightly faster-than-expected recovery at +6.4% QoQ annualized (vs consensus: +6.1%; previous: +4.3%).

Desynchronized Economic Recovery: The global economy is bouncing back, entering a reflationary period characterized by accelerating growth as well as rising interest rates and inflation, although we believe the rise in inflation will be moderate as salaries are unlikely to increase in a more and more uberized world.

We are often asked by our clients for our analysis on the FX market, which we have summarized in the latest SystematicEdge FX Commentary. In this document, our goal is to explain currency drivers and their trends set by fundamental economic data which can, however, be disrupted by geopolitical events. Click on the button below to read the full FX Commentary

MARKET CONTEXT: Biden’s New Deal: Stimulus for the World Economy. US President Biden has announced his US$2.25 trillion infrastructure plan, which comes on top of the recovery package of US$1.9 trillion. In total, stimulus measures announced since 2020 correspond to 25% of the US GDP.

Join this session, March 25th at 8:30 am, hosted by the French Chamber of Commerce in Hong Kong, to hear from Alain Groshens, CEO and Co-Founder from SystematicEdge and Jean-Roch Martin, Managing Partner from Finance Advisory Board about "Mitigating financial cross-border risks for SMEs". During this session, Alain will speak about the importance of Currency Hedging for SMEs doing cross border business. Register by clicking on the below button.