Market Drivers; US Session, April 15

Mohamed Abdelhamid 16 April, 2024 3:18 am Forex Market, Market Update

Amidst rising Treasury yields, the US dollar’s upward momentum persisted, pushing it to new annual highs around 106.20. This week seems to be dominated by escalating geopolitical concerns, especially in the Middle East.

Indicated by the USD Index (DXY), the US dollar held its bullish tilt and surged to new 2024 highs near 106.20 on Monday. The deadlines for housing starts, building permits, and industrial production are April 16.

Staying cautious, EUR/USD dropped to new yearly lows close to 1.0620. On April 16, the ZEW survey’s assessment of economic sentiment in Germany and the euro zone is anticipated. GBP/USD closed The session on Monday hardly moved outside of the 1.2450 zone. The UK’s labor market data for February is due on April 16.

Additional advances helped the USD/JPY pair break above the 154.00 barrier and reach a fresh 34-year high. The findings of the Reuters Tankan Index and Balance of Trade will be shown next in Japan on April 17.

The AUD/USD pair stayed firmly in the negative territory and tested the 2024 lows in the 0.6450–0.6440 range. On April 17, the Westpac Leading Index will be the next noteworthy publication in Australia.

The USD/CAD pair maintained its upward trend, hitting new highs close to the 1.3800 yardstick. The Canadian Inflation Rate and the Core Inflation Rate of the Bank of Canada will be in the spotlight on April 16.

After Friday’s respectable increase, USD/CNH resumed its consolidative phase near 7.2600. April 16 is the Chinese calendar date for the Q1 GDP Growth Rate, Retail Sales, Industrial Production, and Unemployment Rate.

Economic Data:

According to data released by the US Census Bureau, retail sales in March increased by 0.7% year over year, exceeding the 0.3% annual growth rate that was predicted.

The first quarter growth of the US economy demonstrated resiliency and growing consumer spending supported by strong labor demand. With continued strong growth and sustained inflation, the Fed is shifting toward a more hawkish attitude, relaxing expectations and beginning to imply a delay in interest rate cuts.

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