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Forex Today: Dollar falls ahead of key GDP data

This is what you need to know to trade today Thursday April 25:

The US dollar (USD) remains under modest selling pressure on Thursday as investors prepare for key data releases. The United States Bureau of Economic Analysis will publish the first estimate of annualized Gross Domestic Product (GDP) growth for the first quarter and the Department of Labor will release weekly data on Initial Jobless Claims.

Following Tuesday's sharp decline, the Dollar Index posted small losses on Wednesday, supported by encouraging March durable goods orders data. Additionally, cautious markets helped the currency hold firm against its risk-sensitive rivals. Early on Thursday, the USD index remains in negative territory and is approaching 105.50. The US economy is expected to grow at an annual rate of 2.5% in the first quarter, following the 3.4% expansion recorded in the last quarter of 2023. Meanwhile, US stock index futures move at decline in the European morning and the 10-year US debt yield continues to fluctuate above 4.6%.

He EUR/USD gained traction and rose to its highest level in almost two weeks above 1.0720 after closing virtually unchanged on Monday. Various policymakers from the European Central Bank (ECB) will give speeches throughout the day.

Price of the US Dollar this week

The following table shows the percentage change of the United States Dollar (USD) against the main currencies quoted this week. The US Dollar was the weakest currency against the Australian Dollar.

USD EUR GBP CAD AUD JPY NZD CHF
USD -0.60% -1.02% -0.44% -1.47% 0.66% -0.91% 0.22%
EUR 0.59% -0.41% 0.16% -0.86% 1.25% -0.30% 0.81%
GBP 0.99% 0.39% 0.58% -0.46% 1.67% 0.11% 1.22%
CAD 0.43% -0.16% -0.56% -1.03% 1.09% -0.47% 0.66%
AUD 1.45% 0.86% 0.45% 1.02% 2.09% 0.55% 1.66%
JPY -0.66% -1.26% -1.68% -1.10% -2.14% -1.57% -0.44%
NZD 0.89% 0.30% -0.13% 0.46% -0.56% 1.54% 1.11%
CHF -0.20% -0.83% -1.24% -0.64% -1.67% 0.46% -1.10%

The heat map shows the percentage changes of the major currencies against each other. The base currency is chosen in the left column, while the quote currency is chosen in the top row. For example, if you choose the Euro in the left column and scroll down the horizontal line to the Japanese Yen, the percentage change that appears in the box will represent EUR (base)/JPY (quote).

He GBP/USD closed on Wednesday for the second consecutive day in positive territory and continued to rise in the early stages of the European session on Thursday. The pair last traded within a few pips of 1.2500.

He USD/JPY it broke above 155.00 and reached its highest level in several decades above 155.50. The Bank of Japan (BoJ) will announce monetary policy decisions during Asian trading on Friday.

He Gold (XAU/USD) closed with marginal losses on Wednesday. On Thursday, after falling towards $2,300 in the Asian session, XAU/USD rebounded and is now trading above $2,320.

economic indicator

Annualized Gross Domestic Product

Annualized real Gross Domestic Product (GDP), published quarterly by the US Bureau of Economic Analysis, measures the value of final goods and services produced in the United States in a given time period. The evolution of GDP is the most popular indicator of the country's general economic health. The data is expressed at an annualized rate, meaning that the rate has been adjusted to reflect the amount that GDP would have changed within one year, if it had continued to grow at that specific rate. Generally speaking, a high reading is considered bullish for the US Dollar (USD), while a low reading is considered bearish.

More information.

Last post: Thu Mar 28, 2024 12:30

Periodicity: Quarterly

Current: 3.4

Consensus: 3.2%

Former: 3 ,2

Fountain: US Bureau of Economic Analysis

The US Bureau of Economic Analysis (BEA) publishes annualized Gross Domestic Product (GDP) growth for each quarter. After publishing the first estimate, the BEA reviews the data two more times, with the third release representing the final reading. Typically, the first estimate is the one that influences the market the most, and a positive surprise is considered positive for the dollar, while a disappointing data will likely weigh on the greenback. Second and third releases are often dismissed by market participants as they are typically not significant enough to significantly alter the growth picture.

Source: Fx Street

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