USD Rallies against GBP, EUR as Market Concerns Ease
The US dollar (USD) rose against its major trading partners, the Great Britain pound (GBP) and the euro currency (EUR), early Thursday ahead of a full schedule of data releases. The market’s global trade war concerns began to ease after President Donald Trump reversed his stance on China tariffs.
Weekly initial jobless claims and durable goods orders, and the Chicago Federal Reserve’s national index, both for March, are all due to be released. The US dollar has rebounded from its lowest levels in three years amid easing concerns about the independence of the Federal Reserve and growing hopes for a de-escalation of the trade war.
Trump said he had no intention of dismissing Federal Reserve Chairman Jerome Powell, removing concerns over the independence of US monetary policy. Also, he indicated a softer stance toward China, saying he plans to be “very gentle” in any trade negotiations.
This year, the U.S. dollar index DXY has tumbled 9% below its January peak and skidded to a three-year low. A quick summary of foreign exchange activity heading into Thursday showed that USDEUR rose to 1.1389 from 1.1327 at the Wednesday US close but was below a level of 1.1404 at the same time Wednesday morning.
There are no Eurozone data on Thursday’s schedule, but European Central Bank policy board member Philip Lane is due to speak. The next European Central Bank meeting is scheduled for June 4-5.
GBPUSD rose to 1.3305 from 1.3266 at Wednesday’s US close and 1.3302 at the same time Wednesday morning. UK car registrations rebounded in March after a decline in the previous month, while UK manufacturing expectations remained pessimistic in April. The next Bank of England meeting is scheduled for May 8.
USDJPY fell to 142.5085 from 143.4256 at the Wednesday US close but was above a level of 141.9988 at the same time Wednesday morning. Japanese corporate services price growth accelerated in March, according to data released overnight. The next Bank of Japan meeting is scheduled for April 30-May 1.
USDCAD fell to 1.3855 from 1.3886 at the Wednesday US close but was above a level of 1.3823 at the same time Wednesday morning. Canadian average weekly earnings for February are due to be released. The next Bank of Canada meeting is scheduled for June 4. Pension Fund Assets Grows to N23.366 Trillion
