Market Drivers; US Session, April 25

Mohamed Abdelhamid 26 April, 2024 3:13 am Commodities, Forex Market, Market Update

Before Friday’s release of PCE data, the USD Index (DXY) had already fallen to multi-day lows due to depressing GDP readings and higher inflation prints. This continued downward bias harmed the US Dollar. With rising yields and a prevailing appetite for risk, the USD Index (DXY) returned to the mid-105.00s. The PCE’s inflation measurements, personal income, personal spending, and the final Michigan Consumer Sentiment for April will be the main topics of discussion on April 26.

Key Developments

EUR/USD advanced further north of the 1.0700 barrier amidst the persistent selling pressure around the US Dollar. There will be no data releases in the euro docket at the end of the week.

GBP/USD extended further its weekly recovery and reclaimed the area well past 1.2500 the figure. The GfK Consumer Confidence gauge is only expected on April 26.

USD/JPY maintained its bullish mood well in place and rose to fresh tops around 155.75 prior to the BoJ gathering. The BoJ meets and releases its Quarterly Outlook Report on April 26.

AUD/USD traded with gains for the fourth consecutive session and flirted once again with the key 200-day SMA near 0.6530. The Australian calendar will be empty on April 26.

Commodities

Extra losses sparked the second day in a row of losses in WTI prices in response to the resurgence of demand fears and the likelihood of a tighter-for-longer Fed.

Gold advanced decently after three straight daily declines on the back of rising geopolitical jitters and higher-than-expected US inflation. Silver, in the meantime, seems to have embarked on a consolidative range underpinned by the $27.00 region so far.

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