Forex Today: Relentless dollar buying continues ahead of US GDP


Here is what you need to know on Thursday, April 28:

The US Dollar Index advanced to its highest level in more than five years above 103.00 early Thursday and is already up more than 2% on a weekly basis, boosted by risk-aversion and hawkish Fed expectations. Investors await the German inflation report and the first-quarter Gross Domestic Product (GDP) data from the US. Although the impressive gains witnessed in US stock index futures point to an improving market mood in the European morning, the greenback preserves its strength against its major rivals, especially the JPY.

US GDP Preview: Three reasons to expect dollar-boosting figures.

As the European Union is preparing to respond to Russia's decision to stop exporting gas to Poland and Bulgaria, Russian President Vladimir Putin said that the west's plan to suffocate Russia's economy had failed and reiterated that they will reach all of their objectives in Ukraine. Meanwhile, the Financial Times reported earlier in the day that energy companies in Germany, Austria, Hungary and Slovakia were planning to pay for Russian gas in roubles, which European Commission President Ursula von der Leyen said would be a breach of sanctions imposed against Russia.

EUR/USD plunged below 1.0500 for the first time since January 2017 in the early European morning on Thursday before staging a modest rebound.  

The Bank of Japan (BOJ) announced on Thursday that it kept the monetary policy settings unchanged as widely expected. BOJ Governor Haruhiko Kuroda said that they need to continue the current powerful monetary easing in a patient way. "Western central banks are normalising their policy but Japan is not in such a situation given its economy and price trend," Kuroda further noted, highlighting the policy divergence. In turn, USD/JPY was last seen trading at its highest level in more than 20 years at around 130.50, gaining 1.5% on a daily basis. 

GBP/USD dipped below 1.2500 during the Asian trading hours on Thursday but managed to rebound modestly in the early European session. In the absence of high-tier macroeconomic data releases from the UK, the pair remains at the mercy of the dollar's market valuation.

Gold turned south and closed deep in negative territory on Wednesday after having posted modest daily gains on Tuesday. XAU/USD extended its slide to a fresh 10-week low in the early Asian session before turning flat on the day near $1,885.

Bitcoin rose nearly 3% on Wednesday but continues to trade below the key $40,000 level. Ethereum fluctuates in a relatively tight range at around $2,900 early Thursday following Wednesday's rebound.

 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

EUR/USD consolidates weekly gains above 1.1150

EUR/USD consolidates weekly gains above 1.1150

EUR/USD moves up and down in a narrow channel slightly above 1.1150 on Friday. In the absence of high-tier macroeconomic data releases, comments from central bank officials and the risk mood could drive the pair's action heading into the weekend.

EUR/USD News
GBP/USD stabilizes near 1.3300, looks to post strong weekly gains

GBP/USD stabilizes near 1.3300, looks to post strong weekly gains

GBP/USD trades modestly higher on the day near 1.3300, supported by the upbeat UK Retail Sales data for August. The pair remains on track to end the week, which featured Fed and BoE policy decisions, with strong gains. 

GBP/USD News
Gold extends rally to new record-high above $2,610

Gold extends rally to new record-high above $2,610

Gold (XAU/USD) preserves its bullish momentum and trades at a new all-time high above $2,610 on Friday. Heightened expectations that global central banks will follow the Fed in easing policy and slashing rates lift XAU/USD.

Gold News
Week ahead – SNB to cut again, RBA to stand pat, PCE inflation also on tap

Week ahead – SNB to cut again, RBA to stand pat, PCE inflation also on tap

SNB is expected to ease for third time; might cut by 50bps. RBA to hold rates but could turn less hawkish as CPI falls. After inaugural Fed cut, attention turns to PCE inflation.

Read more
Bank of Japan set to keep rates on hold after July’s hike shocked markets

Bank of Japan set to keep rates on hold after July’s hike shocked markets

The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session. 

Read more
Moneta Markets review 2024: All you need to know

Moneta Markets review 2024: All you need to know

VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.

Read More

Forex MAJORS

Cryptocurrencies

Signatures