Next, what you need to know on Wednesday, April 30:
After the volatile action on Tuesday, financial markets remain relatively quiet in the early hours of Wednesday while investors prepare for the publication of high -level data. The European Economic Calendar will present the data of the Gross Domestic Product (GDP) of the first quarter for Germany and the Eurozone, together with the monthly unemployment rate and the figures of the consumer price index (CPI) of Germany. In the second half of the day, the US Economic Analysis Office (BEA) will publish its first EDG estimation of the Q1 and the numbers of the Personal Consumption Expenditure Index (PCE) for March. ADP employment change data will also be analyzed by investors.
US dollar price this week
The lower table shows the percentage of the US dollar change (USD) compared to the main currencies this week. US dollar was the strongest currency against the New Zealand dollar.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.14% | -0.57% | -0.60% | -0.28% | -0.03% | 0.50% | -0.52% | |
| EUR | 0.14% | -0.49% | -0.47% | -0.16% | 0.02% | 0.63% | -0.40% | |
| GBP | 0.57% | 0.49% | 0.04% | 0.35% | 0.49% | 1.12% | 0.11% | |
| JPY | 0.60% | 0.47% | -0.04% | 0.35% | 0.61% | -0.31% | 0.40% | |
| CAD | 0.28% | 0.16% | -0.35% | -0.35% | 0.13% | 0.78% | -0.22% | |
| Aud | 0.03% | -0.02% | -0.49% | -0.61% | -0.13% | 0.63% | -0.40% | |
| NZD | -0.50% | -0.63% | -1.12% | 0.31% | -0.78% | -0.63% | -1.01% | |
| CHF | 0.52% | 0.40% | -0.11% | -0.40% | 0.22% | 0.40% | 1.01% |
The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the US dollar of the left column and move along the horizontal line to the Japanese yen, the percentage change shown in the box will represent the USD (base)/JPY (quotation).
After advancing during the European negotiation hours on Tuesday, the US Dollar Index (USD) He lost traction and closed the day with small profits. The US data showed that Jolts job offers were 7.19 million in March, below the market expectation of 7.5 million. In Wednesday, the USD index fluctuates on a narrow channel above 99.00.
In Wednesday’s Asian session, the Australian Statistics Office reported that IPC inflation remained stable at 2.4% at an annual level in the first quarter. This reading exceeded the estimation of analysts of 2.2%. Commenting on inflation data, the Australian treasurer Jim Chalmers said the market expects more cuts in interest rates after inflation figures, adding that you see nothing in these numbers that substantially alter market expectations. After losing more than 0.7% on Tuesday, AUD/USD It remains stable around 0.6400 in the European morning.
EUR/USD He failed to take advantage of Monday’s profits and closed slightly down on Tuesday. The pair moves laterally below 1,1400 in the European morning. Earlier in the day, Germany’s data showed that retail sales fell 0.2% in monthly terms in March.
GBP/USD fluctuates in a narrow range around 1,3400 in the European morning on Wednesday.
After the strong fall on Monday, USD/JPY He found his stability and recorded small profits on Tuesday. The pair continues to advance around 143.00 to begin the European session. First thing on Thursday, the Bank of Japan will announce monetary policy decisions.
Gold Fight to gather directional impulse and move up and down on a narrow channel above $ 3,300 early Wednesday.
GDP FAQS
The gross domestic product (GDP) of a country measures the growth rate of its economy for a certain period of time, normally a quarter. The most reliable figures are those that compare GDP with the previous quarter (for example, the second quarter of 2023 with the first of 2023) or with the same period of the previous year (for example, the second quarter of 2023 with the second of 2022).
The annualized quarterly figures of GDP extrapolate the growth rate of the quarter as if it were constant for the rest of the year. However, they can be misleading if temporary disturbances affect growth in a quarter but it is unlikely that they last all year, as happened in the first quarter of 2020 with the burst of the coronavirus pandemic, when the growth collapsed.
A higher GDP result is usually positive for the currency of a nation, since it reflects a growing economy, which is more likely to produce goods and services that can be exported, as well as attracting greater foreign investment. Similarly, when GDP falls it is usually negative for the currency.
When an economy grows, people tend to spend more, which causes inflation. The Central Bank of the country then has to raise interest rates to combat inflation, with the side effect of attracting more world investor capital tickets, which helps the appreciation of the local currency.
When an economy grows and GDP increases, people tend to spend more, which causes inflation. Then, the country’s central bank has to raise interest rates to combat inflation. Higher interest rates are negative for gold because they increase the opportunity cost to keep gold in the face of placing the money in a cash deposit account. Therefore, a higher GDP growth rate is usually a bearish factor for the price of gold.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
