Amidst ongoing geopolitical concerns and a strong belief in an ECB rate cut this summer, the Greenback’s recent gain ran out of steam, leading to a correction in the USD Index (DXY) and some rebound in the risk-linked sectors.
Here is what you need to know on Thursday, April 18:
The USD Index (DXY) had to recede from recent highs as a result of pressure on the Greenback. The weekly Initial Jobless Claims, the CB Leading Index, the Philly Fed Manufacturing Index, and Existing Home Sales are all due on April 18. Bowman, Bostic, and Williams of the Fed are all scheduled to speak.
Due to fresh selling pressure in the dollar and a risk-friendly atmosphere in international markets, EUR/USD surged to three-day highs.
Due to risk-on attitude and expectations of a rate cut by the Bank of England later in the year, GBP/USD smiled again and moved back up into the upper 1.2400s.
After two straight days of advances, USD/JPY traded cautiously, but it was still able to stay above 154.00. April 18 is set aside in Japan for the weekly Foreign Bond Investment and BoJ Noguchi’s speech.
The Australian dollar (AUD/USD) ended a three-session losing run and recovered from recent annual lows in the sub-0.6400 region. On April 18, the Australian labor market data is released, taking center stage.
Due to a rise in US crude oil stocks that was more than anticipated each week and a reduction in geopolitical concerns, WTI fell sharply and flirted near $82.00 per barrel.
With waning geopolitical concerns, gold prices slightly declined below $2,400 per troy ounce pari passu. The sharp drop in silver prices on Tuesday was overcome, and the price per ounce rose above $28.00.