This is what you need to know to trade today Wednesday, May 1st:
He Dollar United States (USD) maintains its strength on the first trading day of May, as investors prepare for the release of key data and monetary policy decisions from the Federal Reserve. ADP to release private sector employment report for April, ahead of U.S. Bureau of Labor Statistics releases March JOLTS job openings data and April ISM Manufacturing PMI survey . The Fed's monetary policy decision will be followed by the press conference of its president, Jerome Powell. European markets will remain closed for the Labor Day holiday.
The Dollar posted impressive gains against its major rivals on Tuesday, boosted by the latest data releases and safe haven flows. The employment cost index rose 1.2% in the first quarter of the year. This figure, after the 0.9% increase recorded in the previous quarter, exceeded market expectations, which expected an increase of 1%. Meanwhile, Wall Street's major indexes suffered heavy losses on Tuesday, with the Nasdaq Composite Index falling nearly 2%. The USD index rose more than 0.6% on Tuesday and is now fluctuating in positive territory around 106.50. Meanwhile, the yield on the 10-year US Treasury bond remains near 4.7%, after rising more than 1% on Tuesday.
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 strongest currency against the New Zealand Dollar.
| USD | EUR | GBP | CAD | AUD | JPY | NZD | CHF | |
| USD | 0.44% | 0.21% | 0.87% | 1.03% | -0.21% | 1.04% | 0.84% | |
| EUR | -0.44% | -0.23% | 0.43% | 0.59% | -0.64% | 0.61% | 0.39% | |
| GBP | -0.20% | 0.23% | 0.66% | 0.82% | -0.41% | 0.83% | 0.63% | |
| CAD | -0.88% | -0.43% | -0.67% | 0.15% | -1.08% | 0.18% | -0.06% | |
| AUD | -1.02% | -0.58% | -0.81% | -0.15% | -1.22% | 0.03% | -0.19% | |
| JPY | 0.21% | 0.64% | 0.40% | 1.06% | 1.21% | 1.24% | 1.03% | |
| NZD | -1.07% | -0.59% | -0.85% | -0.18% | -0.03% | -1.27% | -0.23% | |
| CHF | -0.84% | -0.38% | -0.64% | 0.04% | 0.19% | -1.00% | 0.22% |
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).
After spending the first half of the day above 1.0700 on Tuesday, the EUR/USD It turned lower in the American session and recorded its lowest daily close in a week. The pair continues lower in the early part of Wednesday and is trading around 1.0650.
He GBP/USD was under downward pressure and lost more than 0.5% on Tuesday, erasing Monday's gains in the process. During the European morning, the pair has struggled to recover and is trading in the red around 1.2470.
New Zealand data showed the unemployment rate rose from 4% to 4.3% in the first quarter. The change in employment in this period was -0.2%, after the 0.4% increase recorded in the last quarter of 2023. Pressured by the general strength of the Dollar and disappointing data, the pair NZD/USD It lost 1.5% on Tuesday and is currently trading below 0.5900.
He USD/JPY posted strong gains on Tuesday and recovered much of the decline caused by Japan's alleged intervention in currency markets earlier in the week. At press time, the pair is trading in a narrow channel slightly below 158.00.
Gold lost more than 2% on Tuesday and fell to its lowest level in more than three weeks below $2,300. The XAU/USD remains in a consolidation phase above $2,280 in the European morning.
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.
