fxs_header_sponsor_anchor

News

Forex Today: US Dollar extends recovery to start action-packed week

Here is what you need to know on Monday, May 1:

Financial markets stay relatively quiet to start the new week after month-end flows ramped up volatility ahead of the weekend. Nevertheless, the US Dollar manages to stay resilient against its rivals early Monday with the US Dollar Index extending its recovery toward 102.00. The trading is action is likely to remain subdued during the first half of the day due to Labor Day holiday. In the American session, the ISM Manufacturing PMI survey for April will be watched closely by investors.

US ISM Manufacturing PMI April Preview: Gloom persists despite expanding US economy.

On Friday, the data from the US showed that the Core Personal Consumption Expenditures (PCE) Price Index, the Fed's preferred gauge of inflation, edged lower to 4.6% on a yearly basis in March from 4.7% in April. Moreover, the US Bureau of Labor Statistics reported that the Employment Cost Index, compensation costs for civilian workers, increased by 1.2% in the first quarter, compared to 1% increase recorded in the previous quarter.

Over the weekend, roughly a dozen banks, including PNC Financial Services Group, JPMorgan Chase & Co and Citizens Financial Group Inc, have reportedly submitted bids for first Republic Bank as US regulators are trying to finalize the sale. US stock index futures trade modestly higher on the day following this development and the benchmark 10-year US Treasury bond yield stays below 3.5% despite having retraced a small portion of Friday's decline.

EUR/USD stays under modest bearish pressure and trades near 1.1000 in the European morning on Monday.

GBP/USD reached its highest level since June 2022 at 1.2585 on Friday but struggled to preserve its bullish momentum at the beginning of the week. The pair was last seen trading in negative territory below 1.2550. 

Following Friday's impressive rally that was fueled by the Bank of Japan's dovish language, USD/JPY continues to push higher early Monday and was last seen trading at its highest level since early March at 136.80.

AUD/USD has gained traction and advanced toward 0.6650 early Monday. In the Asian trading hours on Tuesday, the Reserve Bank of Australia will announce its policy decision.

Reserve Bank of Australia Preview: No change, nothing new for the Aussie.

Gold price came under renewed selling pressure on Monday and declined to $1,980 area, pressured by recovering US T-bond yields.

Following a quiet weekend, Bitcoin turned south early Monday and was last seen losing more than 2% on the day at around $28,650. After having failed to reclaim $1,900, Ethereum lost its traction and lost more than 1% on Sunday. ETH/USD continues to edge lower toward $1,800 on Monday.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.