Forex Today: Dollar slides amid quiet market conditions


The Melbourne Institute will release the Westpac–Melbourne Institute Leading Index of Economic Activity and Japan reports Industrial Production. Those numbers should not trigger much action. Markets were quiet on Tuesday, with the US Dollar giving back half of its recent gains.

Here is what you need to know on Wednesday, April 19:

The Greenback dropped on a quiet Tuesday across financial markets. The US Dollar Index (DXY) fell below 102.00 but still remains far from the recent bottom. US yields were little changed, holding near recent monthly highs.

China reported its economy expanded 4.5% YoY in the first quarter, surpassing expectations. It reflects the rebound after the end of the zero-Covid policy. March retail sales jumped 10.6%. The numbers helped market sentiment modestly. Wall Street finished mixed as investor digests Q1 earnings.

EUR/USD rose above 1.0950 but still remains capped below 1.1000. The trend is still up. On Wednesday, the Final March Consumer Price Index is due in the Euro Zone and the Federal Reserve (Fed) will release the Beige Book. US Housing data came in mixed on Tuesday.

GBP/USD rose from the 20-day Simple Moving Average back above 1.2400 while EUR/GBP bottomed at 0.8808 (three-day low) and then bounced toward 0.8830. In the UK, the Unemployment Rate rose to 3.8% in the three months ending in February and wage growth came in at 5.9% from a year ago.  On Wednesday, critical consumer inflation is due in the UK, with the headline Consumer Price Index expected at 9.8% YoY.

USD/CAD finished flat around 1.3390, with the Loonie lagging following inflation data from Canada. AUD/USD peaked around 0.6740 boosted by hawkish Reserve Bank of Australia (RBA) minutes and then lost momentum. NZD/USD recovered from weekly lows to the 0.6200 zone.

Gold retook $2,000 and Silver $25.00 benefiting from a weaker US Dollar. Cryptocurrencies also had a mixed day. Bitcoin remains firm above $30,000. Crude oil prices were flat, with WTI slightly below $81.00.

 


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