US Dollar

US Dollar Struggles on Dovish Fed and Improving Global Market Mood

Pound News: Sterling Supported by UK Economic Recovery Optimism

The Pound is steady today as investors remain optimistic over the UK’s economic recovery from the coronavirus pandemic. GBP exchange rates continue to remain steady against the Euro and US Dollar though weaken against risk-correlated currencies like the ‘Aussie.’

A lack of any notable data could weigh on the Pound this week, with any political developments in the lead up to the Scottish Parliament elections, and the global market mood expected to drive movement in Sterling.

Euro News: German Confidence Data Weighs on Euro

Today saw the release of the Ifo’s latest German business confidence results, which came in just below forecasts, reflecting concerns over stricter lockdown restrictions in the country.

German Gfk consumer confidence for May will be published on Wednesday, which is forecast to rise to -3.8, its highest reading in six months.

US Dollar News: Dovish Fed Continues to Weaken US Dollar

The US Dollar had continued to struggle during today’s session. Investors have become increasingly set that the Federal Reserve will keep interest rates at a record-low and that any spike in inflation will be short-lived, while the more upbeat global market mood continues to weigh on the safe-haven US Dollar.

USD exchanges also came under pressure after the US durable goods orders for March printed below expectations at 0.5%, short of the 2.5% forecast.

Manufacturing data from Richmond Fed tomorrow could cause some movement in the US Dollar, although shifts in market sentiment and the global coronavirus situation will remain in focus ahead of the Federal Reserve’s interest rate decision on Wednesday.

Canadian Dollar News: Strong Bank of Canada Commentary Supports CAD

After the Bank of Canada’s (BoC) took a hawkish tone last week the Canadian Dollar has been strengthening. The Canadian Dollar’s appeal has been dented however by a continued weakness in the US Dollar, due to the correlation the currencies share.

The Canadian Dollar will continue to be driven by any shifts in global market sentiment in the coming sessions. Upcoming retail sales data from Canada on Wednesday could also drive movement in the currency.

Australian Dollar News: ‘Aussie’ Supported by Global Market Mood

A sell-off of the US Dollar due to worries over the Federal Reserve’s interest rate decision, and a generally positive risk-on mood has allowed the Australian Dollar to strengthen today, as investors head to the risk-correlated ‘Aussie’.

The Australian Dollar is likely to remain appealing this week, as Wednesday sees the release of the latest Australian inflation rate data for Q1 which is expected to have risen by 1.5% year-on-year.

Upcoming Data

Tuesday, 27th April

11:00    UK CBI Destructive Trades Apr

15:00    US Richmond Fed Manufacturing Index Apr

Wednesday, 28th April

02:30    AU Inflation Rate YoY Q1

07:00    DE GfK Consumer Confidence May