Market Drivers; US Session, April 30

Mohamed Abdelhamid 30 April, 2024 2:25 am Commodities, Forex Market, Market Update

The US dollar started the week on the back foot in a week where interest rate cut bets by the Fed would be in the focus of interest amidst the FOMC event and the release of Non-farm Payrolls data for April.

The US dollar lost Friday’s gains due to the yen’s decline to multi-decade lows past 160.00 vs. the US dollar, which was attributed to the Japanese MoF’s alleged intervention. The week started poorly for the US dollar. The Employment Cost Index is due on April 30. It is followed by the Consumer Confidence Index from the Conference Board and the House Price Index from the FHFA.

With the US dollar once again under pressure to decline, EUR/USD quickly recovered its upside momentum after Friday’s retreat. April 30 is the deadline for retail sales, the release of the labour market report, and the flash Q1 GDP Growth Rate in Germany. The preliminary Q1 GDP Growth Rate and the flash inflation rate for the entire euro zone are also due on this day.

Currencies, Forex Space

GBP/USD rose to three-week highs and flirted with the key 200-day SMA in the 1.2550-1.2560 band. Mortgage Approvals and Mortgage Lending are expected across the pond on April 30.

USD/JPY dropped sharply after hitting new highs past 160.00, all against the backdrop of suspected FX intervention. On April 30, the Unemployment Rate is due in the Japanese docket ahead of Industrial Production, Retail Sales, and Housing Starts.

AUD/USD advanced further and reached new three-week highs close to the 0.6600 region. In Australia, Housing Credit and flash Retail Sales readings are due on April 30.

Commodities

Due to waning geopolitical concerns and the Fed’s tighter-for-longer narrative, WTI prices fell to two-day lows close to $82.00 a barrel.

Due to the weakened dollar and persistent US inflation, gold prices surged for the third straight session, testing the $2,350 level per troy ounce. Silver continued its consolidating trend, steadily bolstered by the $27.00 zone.

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