- The US dollar trades most of the larger currencies.
- The initial reading of the first quarter US GDP becomes negative.
- The US dollar index is over 100.00 rounds before the main US data.
US dollar index (DXY), which monitors the US dollar (USD) performance for six main currencies, trades at 99.30 on Wednesday. Greenback is not really going anywhere, as investors are left against the main data publications during the American session. President of the United States (US) Donald Trump signed the executive order to alleviate the influence of car parts of the auto parts and during the Detroit demonstration Jerome Powell Again, proclaiming Trump on interest rates is more than Powell.
On economic calendar the front, the overall sample will take place this Wednesday before Non -agricultural payroll Publication on Friday. US Gross domestic product (GDP) Q1 Initial reading is already an important element to evaluate the first impact of the administration of tariff policy, if any. And this reading was a very coarse edition, with GDP dropping -0.3%for shrinkage, with a positive amount of 0.4%.
Daily Digest Market Movers: Fears of the recession arise
- Initial reading of the first quarter of the United States in the gross domestic product, the annual shrinkage of the shrinking decreased by 0.3%, absent from the growth forecast of 0.4% and much slower than the 2.4% expansion, which had been seen in the fourth quarter of 2024. Personal consumption expenditure (PCE), which is under the quarter, showed a price pressure of 3.6%of the title PCE, with 2.4%in the last quarter of 2024. Core Pce was red hot – 3.5%, from 2.6% in the previous quarter. It can even be perceived as stagflation.
- Around 13:35 GMT is the Chicago Purchase Manager April index. Expectations have an additional shrink of 45.5 from 47.6.
- At 2:00 pm GMT will also appear in March monthly PCE data. The monthly core PCE is expected to be 0.1%, which is 0.4%. Moon title number is expected to fall to 0% compared to 0.3%.
- The shares dive lower when Nasdaq Futures falls 1.6% compared to the US Opening Bell. European equities are unpaulted and trading.
- The CME Fedwatch tool shows the possibility of reducing the federal reserve interest rate at a 7.6% chance of 92.4% probability that there is no change. The June meeting has a 65.1% probability of cutting rates.
- US 10-year return trades about 4.20%, extinguishing previous decline in yield and putting back bets.
Technical Analysis of the US Dollar Index: Be the effect of delay
The US Dollar Exxter (DXY) has begun to rise from the 2025 year. The bulls are slowly checking for control. chartTo. However, risk elements remain with US data uncertainty and possible further deterioration, which is likely to cause DXY to significantly lower.
Dxy's first obstacle is 100.22, which supported the DXY already in September 2024, a break from the 100.00 round level, which is a bullish signal. A definite recovery would be a return to 101.90, which acted as a pivotal level throughout December 2023 and again as a base for the inverted head and shoulders (H&S) formation in the summer of 2024.
On the other hand, 97.73 support was quickly tested with any important entry title. Below is a relatively thin technical support at 96.94 before looking at the lower level of this new price range. They would be 95.25 and 94.56, which means the freshest lowest, which has not been seen since 2022.
US Dollar Dex: Daily Chart
GDP
The country's gross domestic product (GDP) measures its economic growth rate over a period of time, usually a quarter. The most reliable figures are the ones that compare GDP to the previous quarter, eg 2023 vs Q1 Q2 or last year with the same period, eg 2023 vs 2 Q2 Q2 in 2022. Each year -year -old GDP shapes extrapolate the growth rate of the quarter, as if it were continuous during the year. However, they may be misleading if temporary shocks affect growth within one quarter, but are unlikely to apply throughout the year – for example, in the first quarter of 2020, a cozy pandemic broke out when growth dropped.
The higher result of GDP is generally positive for the country's currency, as it reflects the growing economy, which is more likely to produce goods and services that can be exported, as well as to attract higher foreign investments. The same sign as GDP falls, it is usually negative about the currency. As the economy grows, people tend to spend more, leading to inflation. The National Central Bank must then set interest rates to combat inflation by side effects than to attract more capital inflow to global investors, thus helping to assess the local currency.
As the economy is growing and GDP rises, people tend to spend more, leading to inflation. The National Central Bank must then set interest rates to combat inflation. Higher interest rates are negative about gold as they increase the possibility of keeping gold compared to investing money in the cash management account. Therefore, the higher growth rate of GDP is usually a cary factor for gold prices.
