Forex Today: US Dollar consolidates losses ahead of mid-tier data

Source Fxstreet

Here is what you need to know on Wednesday, April 24:

After weakening against its major rivals in the American session on Tuesday, the US Dollar (USD) seems to have stabilized in the European morning on Wednesday. IFO sentiment data from Germany will be watched closely by market participants midweek. Later in the day, the US economic docket will feature Durable Goods Orders for March.

The USD Index turned south in the second half of the day on Tuesday and closed the day 0.4% lower after the data from the US showed that the business activity in the private sector expanded at a softening pace in early April. The S&P Global Composite PMI declined to 50.9 from 52.1 in March, while the S&P Global Manufacturing PMI fell into the contraction territory, arriving at 49.9. Early Wednesday, the USD Index fluctuates in a narrow range below 106.00 and the benchmark 10-year US Treasury bond yield clings to modest daily gains above 4.6%. After Wall Street's main indexes registered gains for the second consecutive day on Tuesday, US stock index futures trade in positive territory in the European morning.

US Dollar price this week

The table below shows the percentage change of US Dollar (USD) against listed major currencies this week. US Dollar was the weakest against the Australian Dollar.

  USD EUR GBP CAD AUD JPY NZD CHF
USD   -0.35% -0.57% -0.50% -1.31% 0.19% -0.65% 0.30%
EUR 0.35%   -0.21% -0.14% -0.94% 0.54% -0.27% 0.65%
GBP 0.56% 0.21%   0.07% -0.74% 0.74% -0.07% 0.85%
CAD 0.50% 0.15% -0.07%   -0.81% 0.67% -0.14% 0.79%
AUD 1.29% 0.93% 0.74% 0.80%   1.42% 0.66% 1.59%
JPY -0.19% -0.54% -0.76% -0.67% -1.49%   -0.81% 0.11%
NZD 0.66% 0.28% 0.06% 0.14% -0.67% 0.77%   0.89%
CHF -0.29% -0.65% -0.86% -0.79% -1.61% -0.11% -0.92%  

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent EUR (base)/JPY (quote).

 

During the Asian trading hours, the data from Australia showed that inflation, as measured by the change in the Consumer Price Index (CPI), softened to 3.6% on a yearly basis in the first quarter from 4.1%. This reading, however, came in above the market expectation of 3.4%. On a quarterly basis, the CPI rose 1% in Q1. AUD/USD gathered bullish momentum following the inflation data and was last seen rising nearly 0.5% on the day above 0.6500.

Australian Dollar holds position due to risk-on sentiment amid stable US Dollar.

EUR/USD rose 0.5% on Tuesday and climbed above 1.0700 for the first time in over a week. The pair stays relatively quiet near 1.0700 in the European morning.

GBP/USD benefited from the broad USD weakness on Tuesday and gained 0.8%, snapping a three-day losing streak. The pair holds steady at around 1.2450 early Wednesday.

USD/JPY ignored the selling pressure surrounding the USD and extended its sideways action on Tuesday. The pair trades within a few pips of 155.00 in the European session.

Japanese Yen hangs near multi-decade low against USD, close to 155.00 mark.

After registering its largest one-day loss of the year by falling more than 2.5% on Monday, Gold continued to push lower and declined below $2,300 for the first time in nearly three weeks on Tuesday. Although XAU/USD managed to stage a rebound later in the day, it failed to gather momentum. Early Wednesday, the pair trades in a narrow band at around $2,320.

Gold price ticks higher amid modest USD weakness, positive risk tone might cap gains.

Economic Indicator

Durable Goods Orders

The Durable Goods Orders, released by the US Census Bureau, measures the cost of orders received by manufacturers for durable goods, which means goods planned to last for three years or more, such as motor vehicles and appliances. As those durable products often involve large investments they are sensitive to the US economic situation. The final figure shows the state of US production activity. Generally speaking, a high reading is bullish for the USD.

Read more.

Last release: Tue Mar 26, 2024 12:30

Frequency: Monthly

Actual: 1.4%

Consensus: 1.3%

Previous: -6.1%

Source: US Census Bureau

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Crude Oil Price Forecast: Brent Nears $110 Amid Saudi Pipeline Outage, How Much Further Can Oil Rise?Supply risks in the Middle East continue to heat up, with international oil prices fluctuating at high levels.During Tuesday's Asian trading session, Brent crude futures (UKOIL-F) rose to
Author  TradingKey
11 hours ago
Supply risks in the Middle East continue to heat up, with international oil prices fluctuating at high levels.During Tuesday's Asian trading session, Brent crude futures (UKOIL-F) rose to
placeholder
【Daily Brief】10-year Treasury yield briefly tops 5%, S&P 500 slips to 7,602 and the dollar firms at 99.3 as the Fed's decision eve beginsThe 10-year Treasury yield touched 5.014% on Monday — its first print above 5% since October 2023 — while the S&P 500 closed 0.48% lower at 7,619.98 and the dollar index firmed to 99.3. Here is the full market wrap ahead of Wednesday's FOMC decision, the dot plot and the August retail sales report, plus today's CLARITY Act Senate vote.
Author  Irene Q.
11 hours ago
The 10-year Treasury yield touched 5.014% on Monday — its first print above 5% since October 2023 — while the S&P 500 closed 0.48% lower at 7,619.98 and the dollar index firmed to 99.3. Here is the full market wrap ahead of Wednesday's FOMC decision, the dot plot and the August retail sales report, plus today's CLARITY Act Senate vote.
placeholder
Gold falls below $4,300 as higher US yields bolster Fed rate hike betsGold price (XAU/USD) tumbles to near $4,295 during the early Asian session on Tuesday. The precious metal faces some selling pressure as rising bond yields and surging energy prices strengthen expectations that the US Federal Reserve (Fed) will raise interest rates this week. 
Author  FXStreet
18 hours ago
Gold price (XAU/USD) tumbles to near $4,295 during the early Asian session on Tuesday. The precious metal faces some selling pressure as rising bond yields and surging energy prices strengthen expectations that the US Federal Reserve (Fed) will raise interest rates this week. 
placeholder
Silver Price Forecast: XAG/USD falls to near $63.50 amid Fed hike bets, higher oil pricesSilver price (XAG/USD) loses its gains from the previous day, trading around $63.50 per troy ounce during Asian hours on Monday. Non-yielding Silver is currently facing significant headwinds driven by rising Federal Reserve (Fed) rate-hike expectations for the upcoming September decision.
Author  FXStreet
Yesterday 10: 37
Silver price (XAG/USD) loses its gains from the previous day, trading around $63.50 per troy ounce during Asian hours on Monday. Non-yielding Silver is currently facing significant headwinds driven by rising Federal Reserve (Fed) rate-hike expectations for the upcoming September decision.
placeholder
Fed hike odds near 90% into Wednesday's decision — how to trade the dollar, gold and the S&P 500A 0.3% monthly core CPI print has lifted the market-implied probability of a 25bp Fed hike on 16 September to roughly 86.5% ~ 90%, which would be the first increase since July 2023. Here is the decision timeline, the pricing versus the forecasts, both scenarios, and the key levels for the dollar, gold and the S&P 500.
Author  Suzie
Yesterday 07: 49
A 0.3% monthly core CPI print has lifted the market-implied probability of a 25bp Fed hike on 16 September to roughly 86.5% ~ 90%, which would be the first increase since July 2023. Here is the decision timeline, the pricing versus the forecasts, both scenarios, and the key levels for the dollar, gold and the S&P 500.
goTop
quote