US Dollar ends this week’s losing skid and claws back.
The US Dollar (USD) saw Dollar Bulls dig in their heels on Wednesday, clinging onto recent gains and breaking this week’s losing run.
Traders are holding on their hands ahead of GDP and PCE inflation statistics due later this week.
Markets do not perceive a clear catalyst for the turnaround, so take this move with a grain of salt. This could result in the Greenback trading in a narrow range until the release of significant economic data later this. The US Gross Domestic Product (GDP) will be released on Thursday, followed by the Personal Consumption Expenditures (PCE) Price Index, the Fed’s preferred inflation gauge, on Friday.
The US schedule is fairly quiet on Wednesday, with only the Mortgage Bankers Association delivering its weekly Mortgage Applications. Markets will be able to hear from a Fed official when Fed Board Member Christopher Waller speaks about the US Economic Outlook at the Economic Club of New York. Known for being a hawk, any change in the number of interest-rate cuts or timing might be critical for the Greenback’s valuation.
Daily Market movers: Lighter than light.
The Mortgage Bankers Association issued the weekly mortgage applications index for this week at 11:00 GMT. The prior data showed a 1.6% contraction from the previous week, and this week was no exception, with a 0.7% contraction.
The US Treasury will issue another bond, this time for 7 years, at 17:00 GMT.
Christopher Waller, a Fed Board member, will speak about the US economic outlook at the Economic Club of New York about 22:00 GMT.
Overall, equities are up, with the exception of China, where the Hong Kong Hang Seng Index and the Shenzhen Index have both down more than 1%. European and US shares are up 0.25% on average.
According to the CME Group’s Fed Watch Tool, expectations for the Fed’s meeting on May 1 are at 88.3% of leaving the fed funds rate steady, while possibilities The chances of a rate cut are 11.7 percent.
The benchmark 10-year US Treasury Note trades around 4.22%, a bit lower than Tuesday’s high of 4.27%.
