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Forex Today: Investors Brace for Volatility Pickup with Key Data Release

This is what you need to know to trade today Thursday March 30:

The instability in financial markets continues in the second half of the week, but investors are preparing for a spike in volatility throughout the day. On the economic agenda, the data on consumer and business sentiment in the euro zone, March inflation in Germany and fourth-quarter Gross Domestic Product (GDP) in the United States. Participants will also pay close attention to comments from Federal Reserve officials, such as Richmond Fed President, Thomas Barkinand the president of the Minneapolis Fed, Neel Kashkari.

Risk appetite flows dominated markets in the second half on Wednesday and the US dollar’s rebound after two days of declines remained limited. As of early Thursday, the DXY Dollar Index is trading in a tight range around 102.50 and the 10-year US Treasury yield is range-bound above 3.5% for the week. Meanwhile, US stock index futures are trading slightly higher early in the European session. In the final review, US fourth quarter GDP is expected to match the previous estimate of 3.9%. In addition, the US Department of Labor will publish weekly data on initial claims for unemployment benefits.

Earlier, data from Spain have shown that the annual Harmonized Index of Consumer Prices (IPCA) fell sharply to 3.1% in March, from 6% in February. This reading was well below market expectations, which had expected 4%. In Germany, the annual HICP is expected to fall to 7.5% from 9.3%. Despite the lowest inflation data in Spain, the pair EUR/USD continues to trade within its daily range around 1.0850 during European morning.

After the setback on Wednesday, the GBP/USD it has regained traction and has risen to the 1.2350 zone during the European session. Britain’s FTSE 100 index opened slightly higher.

He USD/JPY took advantage of the markets’ positive risk appetite on Wednesday and posted impressive gains. The pair appears to have entered a consolidation phase early on Thursday and is now trading in negative territory below 132.50.

The price of gold it dipped on Wednesday but had no difficulty holding above $1,960. With US yields undecided on Thursday, XAU/USD continues to move up and down its daily range slightly below $1,970.

Supported by the improvement in market sentiment, the Bitcoin it gained nearly 4% on Wednesday and recouped $28,000. BTC/USD is holding its ground on Thursday and continues to rise towards $29,000. He ethereum it posted small gains on Wednesday and is now trading sideways near $1,800.

Source: Fx Street

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