Forex Today: FX intervention hurt the Dollar

The Greenback started the week on the back foot in a week where interest rate cut bets by the Fed would remain in centre stage amidst the FOMC event and the release of April’s Non-farm Payrolls.

Here is what you need to know on Tuesday, April 30:

A negative start to the week saw the Greenback give away Friday’s gains after the presumed intervention by the Japanese MoF to support the yen after it weakened to multi-decade lows past 160.00 vs. the US Dollar. On April 30, the Employment Cost Index is due, seconded by the FHFA’s House Price Index and the Conference Board’s Consumer Confidence gauge.

EUR/USD rapidly left behind Friday’s pullback and regained further upside traction, helped by the renewed downside pressure in the Greenback. Retail Sales, the publication of the labour market report and flash Q1 GDP Growth Rate in Germany are due on April 30 seconded by flash Inflation Rate and the preliminary Q1 GDP Growth Rate in the broader euro bloc.

GBP/USD rose to three-week highs and flirted with the key 200-day SMA in the 1.2550-1.2560 band. Mortgage Approvals and Mortgage Lending are expected across the pond on April 30.

USD/JPY dropped sharply after hitting new highs past 160.00, all against the backdrop of suspected FX intervention. On April 30, the Unemployment Rate is due in the Japanese docket ahead of Industrial Production, Retail Sales, and Housing Starts.

AUD/USD advanced further and reached new three-week highs close to the 0.6600 region. In Australia, Housing Credit and flash Retail Sales readings are due on April 30.

WTI prices dropped to two-day lows near the $82.00 mark per barrel on the back of dwindling geopolitical fears and the Fed’s tighter-for-longer narrative.

Prices of gold advanced for the third session in a row and poked with the $2,350 mark per troy ounce in response to the weaker Dollar and sticky US inflation. Silver extended further its consolidative mood, always supported by the $27.00 region.