The Greenback’s Rollercoaster Ride
The US Dollar Index (DXY) faced a challenging week, closing on a downward trend not seen since September 2024. This decline came as markets reacted to Trump’s “Liberation Day” and grappled with ongoing concerns about economic slowdown.
- Investors closely watched US yields, which saw a significant retracement across the board.
- Upcoming economic events include the NFIB Business Optimism Index and API’s report on US crude oil stockpiles on April 8.
- On April 9, key reports such as the weekly MBA Mortgage Applications, Wholesale Inventories, EIA’s report on US crude oil inventories, and FOMC Minutes are scheduled.
- April 10 will bring focus on the Inflation Rate and weekly Initial Jobless Claims, followed by Producer Prices on April 11.
EUR/USD and GBP/USD Movements
EUR/USD saw a rise for the second consecutive week, reaching levels above 1.1100 amidst new tariffs announced by the White House. Meanwhile, GBP/USD remained near 1.2900 despite hitting multi-month highs above 1.3200.
- Key events to watch include Germany’s Balance of Trade results, EMU’s Retail Sales, and final Inflation Rate in Germany on April 7.
- On April 11, significant reports such as GDP figures, Goods Trade Balance, Industrial and Manufacturing Production, Construction Output, and NIESR Monthly GDP Tracker are due.
USD/JPY and AUD/USD Trends
USD/JPY reversed gains, dropping below 144.50 for the first time since late September. Similarly, AUD/USD plummeted close to the 0.6000 mark, last seen in April 2020.
- Upcoming releases for USD/JPY include Average Cash Earnings, flash Coincident Index, Leading Economic Index, Eco Watchers survey, and more throughout the week.
- For AUD/USD, watch out for the Westpac Consumer Confidence gauge, NAB Business Confidence, Building Permits, Private House Approvals, and Consumer Inflation Expectations in the coming days.
Anticipating Economic Perspectives
Stay tuned for key speeches from central bank officials:
- The Fed’s Kugler and ECB’s Cipollone on April 7.
- The Fed’s Daly, ECB’s De Guindos, and Cipollone on April 8.
- The BoJ’s Ueda, Fed’s Barkin, and ECB’s Cipollone on April 9.
- The RBA’s Bullock, Fed’s Logan and Goolsbee, and ECB’s Montagner, Tuominen, Buch, and Donnery on April 10.
- The ECB’s Lagarde, ahead of Fed’s Musalem and Williams on April 11.
Central Banks’ Meetings
Mark your calendars for the RBNZ meeting on April 9, with expectations of a 3.50% interest rate.