All eyes are turning to the Federal Reserve and the US dollar. How to trade XAU/USD, EUR/USD, and GBP/USD?
Evergreen buck goes down ahead of major GDP reports
On Friday, the evergreen buck went down in Asia due to the fact that financial markets are waiting for the major first-quarter GDP data due later in the day.
Estimating the purchasing potential of the US dollar versus its main peers the USD index sank by 0.1% coming up with an outcome of 97.873.
The US Department of Labor informed that initial jobless claims went up by up to 37,000 to a seasonally updated 230,000 by April 21, confounding experts’ estimate for a leap to 199,000.
On Wednesday, the Commerce Department told that core durable goods orders headed north by 0.4% in March, beating analysts’ forecasts for a 0.2% jump.
Without airplanes, non-defense capital goods orders ascended by 1.3% in March, which is above hopes for a 0.1% ascend.
In addition to this, the currency pair USD/CNY headed south by nearly 0.1% coming up with a reading of 6.7346.
Market participants closely watch Chinese President Xi Jinping’s speech to be delivered at the Belt as well as Road Forum on Friday. The statesman is expected to tack about China’s exchange rate level.
China is going to ensure its national currency stay within rational range, although wouldn’t pursue Yuan depreciation, which harms others.
Eventually, the currency pair USD/JPY stood still, showing 111.61.
On Thursday, the Bank of Japan told it’s about to keep interest rates low enough until 2020. Moreover, the major monetary stimulus settings weren’t changed.
Japan’s major financial institution noted that it won’t meet its 2% inflation goal for the next three years.
Besides this, the currency pair EUR/USD rallied by up to 0.1% hitting 1.1134.
The currency pairs AUD/USD and NZD/UDS shot up by respectively 0.1% and 0.2%.
The main bank of Russian will likely turn hawkish today. Time to sell USD/RUB?
The RBA Rate Statement comes on June 1, at 07:30 GMT+3.
The Bank of England will release its statement and announce its monetary policy decision at 14:00 MT.
Last week the USD soared versus other major currencies, while gold headed for the biggest weekly loss in 15 months. Let’s see what new moves await us this week!
The US dollar has surged to levels unseen since April after the Fed's decision back on Wednesday. Gold has reversed up from the local dips. Still, this week was the worst for gold in more than a year.