The greenback is softer at the close of North American trade with the Dow Jones FXCM Dollar Index (Ticker: USDOLLAR) off by 0.18% on the session. The FOMC interest rate decision was central focus today with the central bank maintaining its pledge to keep rates anchored through 2014 while giving a slightly more upbeat assessment of the economy. The Fed raised its 2012 growth forecast to 2.4%-2.9% from
THE TAKEAWAY: RBNZ holds rates at 2.50% > RBNZ wait-and-see approach contrasts with RBA’s dovish bias > Kiwi strengthens
Daily Winners and Losers The Canadian dollar is the top performing currency against the greenback ahead of the European close with an advance of 0.23% on the session. Broader risk appetite has been well supported ahead of today’s key FOMC interest rate decision with the higher yielding commodity currencies advancing in early US trade. Remarks made by Bank of Canada Governor Mark Carney have continued to support the loonie with
Euro remains very well supported on dips Retail positioning still looking for USD strength Cable and Cad SSI ratios stand out and warn of more USD weakness UK GDP data much softer; opens intraday underperformance in Pound Key event risk later today in the form of the FOMC rate decision We have yet to see any real justification for the latest Euro rally, but at the same time, would not
THE TAKEAWAY: Negative UK GDP growth in Q1 2012 -> Sterling under pressure as data diminishes confidence Great Britain’s Gross Domestic Product contracted in the first quarter, pushing the UK into its first double-dip recession since the 1970s. The report is expected to increase pressure on UK officials, most important PM David Cameron who has faced criticism for promoting austerity instead of government stimulus.
The EURGBP continues to have a strong April moving steadily in a downtrend. Through today’s trading, the pair has moved as much as 214 pips lower from its monthly high at .8357.
Dollar: Fed Forecasts and 1Q GDP Promising Breakout Catalysts British Pound will Put Modest Hawkish Upgrade to the Growth Test Australian Dollar Traders Have a Clear Expectation for Tuesday’s CPI New Zealand Dollar Measured its Reaction to Inflation, How About the RBNZ? Euro Traders Should Watch French Election, IMF Response and Crisis Headlines Japanese Yen Not Seen as a High-Level Volatility Risk, Good Setup for the BoJ Gold May Finally
The greenback is weaker against all its major counterparts save the yen amid a rebound in broader market sentiment. Here are the setups we will be trading on USDCHF and USDJPY. Daily Winners and Losers The Swiss franc is the strongest performer against a weaker greenback with an advance of 0.65% ahead of the European close. Market sentiment is well supported with equities and Treasury yields rallying on stronger than
The greenback threatened its bullish trend on Friday as the Dow Jones-FXCM U.S. Dollar Index tumbled to a fresh weekly low of 9,913, but the reserve currency may snap back going into May should the Fed continue to soften its dovish tone for monetary policy.
