A quiet Asian session is ahead regarding economic data that could help the US Dollar stabilize after posting heavy losses on Thursday on the back of inflation and employment US data. On Friday, the key report will be the US March Retail Sales.
Here is what you need to know on Friday, April 14:
The US Dollar tumbled again, breaking technical and psychological support levels. At the same time, US stocks soared. The Dow Jones ended with a gain of 380 points or 1.15%, while the Nasdaq jumped by 1.99%. The VIX posted the lowest close since February. Big US banks will announce Q1 earnings on Friday.
On Wednesday, the US Consumer Price Index report showed that annual inflation eased to 5% in March, the lowest in two years, but the core rate remained elevated. On Thursday, data showed that wholesale inflation fell more than expected. The annualized Producer Price Index (PPI) inflation dropped from 4.9% to 2.7%, below the 3% expected, the smallest since January 2021. The latest round of data showed that inflation continues to slow down.
US Initial Jobless Claims rose to 239K, above the 232K expected, the highest level since January 2022. The report added signs of a softer labor market. More data is due on Friday with Retail Sales, Industrial Production and Consumer Confidence figures. Upbeat economic reports could help the US Dollar, but the trend is still down. Unless, good news triggers risk appetite and weighs further on the Greenback.
US Retail Sales Preview: Dollar set to jump above low barrier of expectations, three scenarios
EUR/USD posted the first daily close above 1.1000 in a year, helped by a firmer Euro and the sharp slide of the US Dollar. EUR/GBP gained for the third consecutive day, rising to the highest level in weeks above 0.8800.
USD/JPY fell for the second day in a row, although it trimmed losses during the American session, rebounding above 132.50. The improvement in market sentiment weighed on the Japanese yen.
GBP/USD rose for the third consecutive day and posted the highest daily close since June, above 1.2500. Data from the UK showed GDP was unchanged in February, against expectations of a 0.1% expansion. Bank of England’s (BoE) Silvana Tenreyro will participate in a panel on Friday at the International Monetary Fund Spring Meetings about how to fight inflation. At the last BoE meeting she voted to keep rates unchanged.
AUD/USD jumped toward 0.6800 and NZD/USD hit levels above 0.6300 amid a weaker US Dollar. The Kiwi outperformed. Early on Friday, the March Business NZ PMI is due. USD/CAD tumbled to 1.3340, a 2-month low.
USD/CHF confirmed the breakout of long-term support levels and extended the decline to 0.8854, the weakest level since January 2021. Switzerland will release wholesale inflation on Friday.
Gold continued its run toward record highs, rising above $2,040, while Silver approached $26.00. Bitcoin also benefited from the better mood across financial markets and retook $30,000.
Like this article? Help us with some feedback by answering this survey:
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD remains vulnerable near 0.6200 after Chinese inflation data
AUD/USD remains vulnerable near the 0.6200 mark following mixed Australian data and as expected China's inflation numbers. The RBA's dovish shift and China's economic woes add to the weight on the Aussie as risk sentiment remains tepid. Fedspeak eyed.
USD/JPY: Bears attack 158.00 on strong Japanese wage growth data
USD/JPY drifts lower and attacks 158.00 early Thursday after data showed that base salaries for Japanese workers increased at the fastest pace in 32 years. The data backs the case for the BoJ to raise interest rates, which, along with the cautious market mood, benefits the safe-haven Yen and drags the pair away from a multi-month top.
Gold retreats from monthly high as Fedspeak grabs attention
Gold price pulls back from a monthly high of $2,670 set on Wednesday as buyers turn cautious after discouraging China’s inflation data and the hawkish Federal Reserve Minutes. All eyes now remain on a bunch of Fed speakers due to speak later amid US holiday-thinned market conditions.
Ripple's XRP eyes recovery following executives' dinner with Donald Trump
Ripple's XRP is up 2% on Wednesday following positive sentiments surrounding its CEO Brad Garlinghouse's recent dinner with incoming US President Donald Trump. If the recent recovery sentiment prevails, XRP could stage a breakout above the upper boundary line of a bullish pennant pattern.
Bitcoin edges below $96,000, wiping over leveraged traders
Bitcoin's price continues to edge lower, trading below the $96,000 level on Wednesday after declining more than 5% the previous day. The recent price decline has triggered a wave of liquidations across the crypto market, resulting in $694.11 million in total liquidations in the last 24 hours.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.