This week’s forex market movement might be choppy. Participants hunt for the next fundamental driver. Following Wednesday’s underwhelming comeback, the US Dollar Index resumes its sideways crawl on Thursday. The forex risk sentiment remains neutral. The European Central Bank (ECB) will publish the minutes of its most recent policy meeting. Later, President Christine Lagarde will proceed with a speech regarding the matter. The US economic calendar will feature New Home Sales, Weekly Unemployment Claims, and the Philadelphia Federal Reserve Manufacturing Survey. Later in the day, Fed Governor Waller is also planning to speak.
On Wednesday, the US Dollar (USD) remained strong versus its rivals. The cautious market stance and rising US Treasury bond yields caused such a position. The 10-year US T-bond yield fell below 3.6% early Thursday. In the survey period ending April 10, the Fed’s Beige Book indicated that overall price levels climbed somewhat. The rate of price rises appeared to be decreasing.
During Asian trade hours, New Zealand data revealed an interesting instance. The annualized CPI in the first quarter fell to 6.7% from 7.2%. This reading fell short of the market’s forecast of 7.1%, weighing on the NZD/USD. The pair last traded at 0.6170, down 0.4% on the day.
Forex breakdown of weekly trading
The EUR/USD gave up some of its daily gains in the American session. Besides, it posted minor daily losses on Wednesday. In the European morning on Thursday, the pair remains quiet and swings above 1.0950.
On the heels of sizzling inflation figures from the UK, the pound sterling maintained strong versus the US dollar on Wednesday. GBP/USD appears to have entered a consolidation period at about 1.2450 on Thursday after closing a little higher.
On Wednesday, USD/CAD climbed significantly, gaining roughly 100 pips on its way to a new weekly high above 1.3470. As crude oil prices plunged more than 2% daily, the commodity-sensitive loonie struggled to find the market. Early Thursday, the pair seemed to have stabilized at about 1.3450.
The USD/JPY gained traction due to rising US T-bond yields. However, it lost traction after encountering solid resistance near 135.00. The pair held onto its gains in the European morning, staying around 134.50.
On Wednesday, gold plummeted to its lowest level in two weeks, below $1,970, before retracing the majority of its daily decrease in the second half of the day. XAU/USD is trading in a narrow band, barely below $2,000 early Thursday.
Bitcoin fell below $30,000 and lost more than 5% on Wednesday. On Thursday, BTC/USD appears to have settled at $29,000. On Wednesday, Ethereum experienced its largest one-day drop since November, losing more than 8%. Following the recent selloff, ETH/USD trades below the important $2,000 level.