This is what you need to know to operate today Thursday May 15:
He US Dollar (USD) He has difficulty finding demand at the beginning of the European session on Thursday after Wednesday’s volatile action. The European economic calendar will present a review of the growth data of the Gross Domestic Product (GDP) of the Eurozone for the first quarter. Later in the day, the data of the production price index (IPP) of April, retail sales and initial applications for Une.UU unemployment subsidy applications in addition, the president of the Federal Reserve (FED), Jerome Powell, will pronounce a speech on the review of the Fed framework at the Thomas Laubach Research Conference in Washington, DC.
US dollar price this week
The lower table shows the percentage of the US dollar change (USD) compared to the main currencies this week. The US dollar was the strongest currency against the Canadian dollar.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.34% | 0.15% | -0.31% | 0.59% | -0.22% | 0.42% | 0.43% | |
| EUR | -0.34% | -0.06% | -0.10% | 0.75% | 0.07% | 0.57% | 0.58% | |
| GBP | -0.15% | 0.06% | 0.14% | 0.81% | 0.14% | 0.56% | 0.64% | |
| JPY | 0.31% | 0.10% | -0.14% | 0.87% | -0.55% | -0.14% | 0.49% | |
| CAD | -0.59% | -0.75% | -0.81% | -0.87% | -0.53% | -0.17% | -0.17% | |
| Aud | 0.22% | -0.07% | -0.14% | 0.55% | 0.53% | 0.40% | 0.47% | |
| NZD | -0.42% | -0.57% | -0.56% | 0.14% | 0.17% | -0.40% | -0.02% | |
| CHF | -0.43% | -0.58% | -0.64% | -0.49% | 0.17% | -0.47% | 0.02% |
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 falling sharply in the first half of the day on Wednesday, the USD index invested its address in the American session and closed the day practically unchanged. In the first hour on Thursday, the USD index remains down and falls around 100.50, losing more than 0.3% in the day. Meanwhile, the futures of the US stock market rates are down between 0.3% and 0.5% in the European morning, reflecting a caution posture of the market.
First thing of the day, Australia data showed that the unemployment rate remained stable at 4.1% in April, as expected. In this period, the change of employment was +89,000, compared to the expectation of the market of +20,000. After closing the day in negative territory on Wednesday, the AUD/USD It remains firm and advances towards 0.6450 on Thursday.
The United Kingdom National Statistics Office reported Thursday that GDP grew at an annual rate of 1.3% in the first quarter. This reading followed the 1.5% growth recorded in the previous quarter and was better than the market expectation of 1.2%. Other data from the United Kingdom showed that industrial production and manufacturing production contracted 0.7% and 0.8%, respectively, in monthly terms in March. He GBP/USD Win traction in the European session and quote about 1,3300 in positive territory.
The gold broke below $ 3,200 and lost more than 2% on Wednesday. The Xau/USD extends its weekly fall and trades at its lowest level since April 10 below $ 3,150, losing almost 1% in the day. The decrease in geopolitical tensions seems to be weighing on precious metal. The president of the USA, Donald Trump, said Thursday that they are very close to reaching a nuclear agreement with Iran and added that India has offered a commercial agreement with “practically zero tariffs” to the US.
EUR/USD Win traction and quote above 1,1200 after registering small losses on Wednesday. Eurostat will publish the employment change data of the first quarter and the industrial production of March, in addition to the review of GDP. Several policy managers of the European Central Bank (ECB) will utter speeches later in the day.
After a two -day drop, the USD/JPY It is still under bearish pressure and loses more than 0.5% on the day below 146.00 in the European session on Thursday. The Japan cabinet office will publish the GDP data of the first quarter in the first Asian session on Friday.
US dollar FAQS
The US dollar (USD) is the official currency of the United States of America, and the “de facto” currency of a significant number of other countries where it is in circulation along with local tickets. According to data from 2022, it is the most negotiated currency in the world, with more than 88% of all global currency change operations, which is equivalent to an average of 6.6 billion dollars in daily transactions. After World War II, the USD took over the pound sterling as a world reserve currency.
The most important individual factor that influences the value of the US dollar is monetary policy, which is determined by the Federal Reserve (FED). The Fed has two mandates: to achieve price stability (control inflation) and promote full employment. Its main tool to achieve these two objectives is to adjust interest rates. When prices rise too quickly and inflation exceeds the 2% objective set by the Fed, it rises the types, which favors the price of the dollar. When inflation falls below 2% or the unemployment rate is too high, the Fed can lower interest rates, which weighs on the dollar.
In extreme situations, the Federal Reserve can also print more dollars and promulgate quantitative flexibility (QE). The QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is an unconventional policy measure that is used when the credit has been exhausted because banks do not lend each other (for fear of the default of the counterparts). It is the last resort when it is unlikely that a simple decrease in interest rates will achieve the necessary result. It was the weapon chosen by the Fed to combat the contraction of the credit that occurred during the great financial crisis of 2008. It is that the Fed prints more dollars and uses them to buy bonds of the US government, mainly of financial institutions. Which usually leads to a weakening of the US dollar.
The quantitative hardening (QT) is the reverse process for which the Federal Reserve stops buying bonds from financial institutions and does not reinvote the capital of the wallet values ​​that overcome in new purchases. It is usually positive for the US dollar.
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.
