Focus today:
Today (April 25) the Asian market opened with US and Australian currencies falling, while other currencies generally rose; gold prices fell but crude oil showed an upward trend. In terms of foreign exchange: the US dollar index fell to 101.20; the euro against the US dollar rose to 1.1060; the pound against the US dollar rose to 1.2503; the US dollar against the yen fell to 134.16; Precious metals: Gold fell to 1997.32 against the US dollar. Crude oil: Brent crude oil rose to 82.62.
After closing sharply on Monday, it opened around 101.20 today.It fell to a more than one-week low in generally thin trade, as markets were still pricing in rate cuts by the Federal Reserve this year, although the central bank is widely expected to raise rates at its policy meeting next week.。
Joe Manimbo, senior market analyst at Convera in Washington, said the dollar will struggle to build on last week’s gains as upcoming data will likely show slower U.S. economic growth and lower inflation, outcomes that would underpin the case for a mid-year pause in interest rate action. Fed policymakers are widely expected to hike rates by another quarter point at next week’s meeting, but they are thought to be on hold in June. Interest rate futures markets are also pricing in a cut of around 50 basis points by the end of the year.
Yesterday’s financial event data, the Federal Reserve Bank of Chicago announced that the national activity index in March improved to -0.19 from expectations. Although economic activity has been boosted, the expansion has shown a below-average growth rate. In addition, the Federal Reserve Bank of Dallas announced that the manufacturing activity index in April fell sharply to -23.4, showing that the economic activity of manufacturing exports has shrunk significantly.
From the upward direction, the upper suppression (upper resistance) is 101.20, 101.70; from the downward direction, the lower support is 100.90.
After closing higher and falling back on Monday, today’s opening is hovering around 0.8847.Currency markets quiet as traders await key central bank meeting。
Both the Federal Reserve and the European Central Bank meet next week. But before that, market participants will scrutinize U.S. first-quarter GDP and personal consumption expenditures (PCE) price data for signs of economic strain and evidence of sticky inflation for clues to the Fed’s policy path. The dollar is trading in a familiar range, said Marc Chandler, chief market strategist at Bannockburn Global Forex in New York. This is the calm before the storm. Next week we have ECB and Fed meetings and US employment data. Markets would be surprised if they placed big bets so close to these events. Business morale in Germany rose slightly in April, a survey showed on Monday, with Europe’s largest economy on track to escape a winter recession. The president of the Belgian central bank and European Central Bank policymaker Wensch also made hawkish comments.
Yesterday’s financial event dataThe Ifo Economic Research Institute announced that the business indexes in April were mixed. The prosperity and current situation index was lower than expected to 93.6 and 95, but the expectation index was higher than expected to 92.2, reflecting that enterprises are still in a wait-and-see state on the market outlook.
From the upward direction, the upper suppression (upper resistance) is 0.8840, 0.8890; from the downward direction, the lower support is 0.8800.
CPT Markets risk warning and disclaimer: The content of the above article is for reference only and is not intended as future investment advice. The articles published by CPT Markets are mainly based on international financial data reports and international news.
US Dollar Index (DXY)
Euro/British Pound (EURGBP)