Forex Today: No love for US Dollar ahead of key data releases

Eren Sengezer FXStreet

Here is what you need to know on Friday, April 14:

The persistent US Dollar weakness continues early Friday with the US Dollar Index (DXY) staying at one-year lows below 101.00. Import and Export Price Index, March Retail Sales alongside Industrial Production data will be featured in the US economic docket later in the day. Ahead of the weekend, the University of Michigan will release the preliminary Consumer Sentiment Index for April.

US Retail Sales Preview: Dollar set to jump above low barrier of expectations, three scenarios.

Following Wednesday's soft inflation figures, the data from the US showed on Thursday that the Producer Price Index fell sharply in March, forcing the US Dollar (USD) to come under renewed selling pressure. Additionally, the US Department of Labor reported that the weekly Initial Jobless Claims rose to 239K in the week ending April 8, from 228K in the previous week. As Wall Street's main indexes gathered bullish momentum and registered strong daily gains, the DXY extended its slide late Thursday. In the European morning, however, US stock index futures trade in negative territory, pointing to a cautious market stance.

EUR/USD extended its daily rally above 1.1000 on Thursday and touched its strongest level since March 2022 above 1.1070 early Friday. There won't be any high-impact data releases from the Eurozone and the USD's valuation is likely to continue to drive the pair's action heading into the weekend.

GBP/USD closed the third straight day in positive territory on Thursday and managed to hold its ground during the Asian trading hours on Friday. As of writing, the pair was trading a few pips above Thursday's closing level of 1.2520.

Gold price registered impressive gains on Thursday and came within a touching distance of $2,050, the highest level since it set an all-time high in March 2022 at $2,070. XAU/USD seems to have gone into a consolidation phase at around $2,040 early Friday.

USD/JPY declined on Thursday amid the broad-based selling pressure surrounding the US Dollar. With the benchmark 10-year US Treasury bond yield holding steady above 3.4%, however, USD/JPY stays relatively quiet at around 132.50 on Friday.

Bitcoin cleared $30,000 hurdle and continued to push higher toward $31,000 early Friday. Ethereum gained more than 5% and rose above $2,000 for the first time since June. ETH/USD preserves its bullish momentum and was last seen rising another 5% on the day at $2,120.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

160.80: Japanese Yen remains close to nearly two-year lows

USD/JPY inches lower after four days of gains, trading around 160.60 during the Asian hours. The USD/JPY pair surged to 160.80 the previous day, marking its highest level since July 2024 and significantly heightening speculation that Japanese authorities could soon intervene to support the struggling Yen.

AUD/USD eyes 0.7050 on weaker USD; 100-day SMA holds the key for bulls

The AUD/USD pair regains positive traction during the Asian session, reversing part of the previous day's slide to sub-0.7000 levels, or the weekly low. Spot prices currently trade around the 0.7040 region, up nearly 0.40% for the day, amid a broadly weaker US Dollar.

$4,300: Gold bounces amid US-Iran peace deal signing, Fed’s hawkish hold

Gold is reversing the previous slump early Wednesday, regaining $4,300 after finding fresh buyers near $4,250. The US Dollar retreats as US-Iran peace deal optimism overshadows hawkish Fed outlook. Technically, Gold needs a sustained break above the 21-day SMA near $4,390 to revive the recovery.

Ripple awaits a breakout while Stellar rally gathers pace

Ripple steadies at $1.19 below the upper boundary of its falling channel after facing rejection. Meanwhile, Stellar extends its gains, rallying over 25% so far this week. Derivatives metrics suggest a cautious outlook for XRP, while XLM's improving futures positioning suggests a bullish outlook.

A new era for the Fed

The Fed has shifted to a more hawkish stance at the first meeting chaired by Kevin Warsh. Although rates were left unchanged, there will be meaningful adjustments to how the Federal Reserve operates in the coming months and years. There are two main takeaways from today’s meeting, firstly what the Fed did, and secondly, what they are planning to do.

Why a hawkish RBA is no longer enough to lift the Australian Dollar

The Reserve Bank of Australia delivered more than what markets expected: a hawkish hold that should have supported the Aussie. But markets widely ignored it, focusing instead on slowing economic growth and proving that central bank messaging alone isn’t always enough to drive currencies.