Here is what you need to know on Thursday, May 1:
The US Dollar (USD) will gather strength against competitors at the beginning of Thursday, with the USD index rising at a height of two weeks above 100.00. In addition to the initial initial unemployed requirements in the US, the US Economic Calendar has cuts and ISM production data in Challenger jobs in April. The European markets remain closed to follow the working day.
US dollar price this week
The table below shows a percentage of the US dollar (USD) per main currencies listed this week. The US dollar was the strongest of the euro.
| Dollar | EUR | Gbp | Jpy | Kadi | Audio | Nzd | Chf | |
|---|---|---|---|---|---|---|---|---|
| Dollar | 0.57% | 0.13% | 0.52% | -0.41% | 0.16% | 0.54% | -0.19% | |
| EUR | -0.57% | -0.49% | -0.02% | -0.99% | -0.51% | -0.04% | -0.77% | |
| Gbp | -0.13% | 0.49% | 0.44% | -0.49% | -0.04% | 0.45% | -0.28% | |
| Jpy | -0.52% | 0.02% | -0.44% | -0.93% | -0.36% | -1,41% | -0.48% | |
| Kadi | 0.41% | 0.99% | 0.49% | 0.93% | 0.45% | 0.95% | 0.23% | |
| Audio | -0.16% | 0.51% | 0.04% | 0.36% | -0.45% | 0.49% | -0.26% | |
| Nzd | -0.54% | 0.04% | -0.45% | 1.41% | -0.95% | -0.49% | -0.73% | |
| Chf | 0.19% | 0.77% | 0.28% | 0.48% | -0.23% | 0.26% | 0.73% |
The heat card shows the percentage of the main currencies relative to each other. The basic currency is selected from the left column, but the quote currency is selected from the upper row. For example, if you select the US dollar left column and move the horizontal line to the Japanese yen, the percentage change in the box marks the USD (base)/JPY (quote).
The bank of Japan announced on Thursday that it left a short-term interest rate of 0.40%to 0.50%. Boji governor Kazuo Ueda stated at a post -meeting press conference that uncertainty about Japanese prospects increased dramatically due to US trade policy. Ueda reiterated that they would continue to increase interest rates as the economy and prices move according to their projections. USD/JPY Maintains his bullish momentum and trades over 144.50 in Europe in the morning, rising by about 1%on the day.
The US Economic Analysis Bureau announced on Wednesday that the gross domestic product (GDP) had entered into an annual rate of 0.3%in the first quarter. Other US data showed that the cost index of personal consumption (PCE) price index, the Federal Reserve (FED) preferred inflation meter, rose 2.6%in March, which corresponded to the Turku Consensus. In the meantime, US President Donald Trump said on Wednesday that they were very likely to reach an agreement with China. US trade representative Jamieson Greer told reporters that there were no official talks with China. The US stock index futures will rise by 0.5-1.4% on Thursday in the morning of Europe after the main indices of Wall Street record small profits on Wednesday.
EUR/USD After two consecutive days of posting the damage, the European session will remain nearby and trade near 1.1300.
GBP/USD At the beginning of Thursday, the 1,3300 regions of the fight and retreat, losing about 0.3%during the day.
Golden Lose almost 1% on Wednesday and closed less than $ 3,300. Xau/USD expands its weekly slide and trades in a deep negative area of less than $ 3,50 to start a European session.
US dollar
The US Dollar (USD) is the official currency of the United States and a significant number of “de facto” currency in other countries, where it is found in circulation alongside local bonds. It is the most strongly traded currency in the world, accounting for over 88% of the total global currency exchange turnover or an average of $ 6.6 trillion most of its history supported US dollars until the Bretton Woods Agreement in 1971, when the gold standard went away.
The most important factor affecting the value of the US dollar is the monetary policy designed by the Federal Reserve (FED). Fed is two mandates: achieving price stability (control inflation) and promoting full employment. Its main tool to achieve the two goals is to adjust interest rates. If prices rise too fast and inflation exceeds Fed's 2% goal, Fed increases interest rates that help the USD value. If inflation drops below 2% or the unemployment rate is too high, Fed may be lower interest rates that outweigh the green return.
In extreme situations, the Federal Reserve can also print more dollars and quantitative relief (QE). QE is a process in which FED significantly increases the credit flow of a clever in the financial system. This is a non -standard policy measure used when credit has dried up because banks do not lend to each other (fear of the counter by default). This is the last resort if the interest rates are unlikely to be achieved. In 2008, during a major financial crisis, the Fed -selected weapon to fight. This includes more dollars in FED printing and their use to buy US government bonds mainly from financial institutions. QE usually leads to a weaker US dollar.
Quantitative effort (QT) is the opposite process in which the Federal Reserve stops buying bonds from financial institutions or investing the majority of the bonds it matures in the event of new purchases. Usually it is positive about the US dollar.
