This is what you need to know to trade today friday april 15:
After Wednesday’s decline, the US dollar index DXY rose sharply on Thursday and hit its highest level since March 2020 at 100.76 driven by rising US Treasury yields and safe haven money flows. With the markets calm easter friday, the DXY index consolidates its weekly gains. Before the weekend, the US Federal Reserve will release industrial production data for March, but it is unlikely to trigger a noticeable market reaction.
The European Central Bank (ECB) announced on Thursday that it left its monetary policies unchanged after the April meeting. At the press conference, the President of the ECB, Christine Lagarde, reiterated that QE will end in the third quarter and that the first rate hike would come sometime after asset purchases are completed. Although Lagarde acknowledged that risks to the outlook for inflation were tilted to the upside in the near term, his overall dovish tone triggered a sharp sell-off in the euro.
With the ECB’s position highlighting the growing policy divergence with the Fed, the benchmark 10-year US bond yield rose beyond 2.8% on Thursday. Additionally, the S&P 500 index fell more than 1%, reflecting a negative shift in risk sentiment.
The EUR/USD tumbled to its lowest level since April 2020 at 1.0757 on Thursday before bouncing amid profit-taking late in the American session. The pair is trading in a relatively tight range above 1.0800 early on Friday.
The GBP/USD seems to have entered a consolidation phase above 1.3050 after losing 50 pips on Thursday. The sharp decline seen in the EUR/GBP suggests that the British pound has managed to capture some of the outflows from the common currency.
The Prayed closed for the sixth straight day in positive territory on Wednesday, but rising US bond yields capped the yellow metal’s rise. XAU/USD posted small losses on Thursday to end the week in the positive above $1,970.
Japanese Prime Minister, fumio kishidasaid on Friday that the Bank of Japan’s monetary policy is aimed at reaching its 2% inflation target, not manipulating currency rates.
The Bitcoin fell on Thursday amid risk aversion but appears to have found support near $40,000. The ethereum it fell sharply on Thursday and erased the gains it posted on Tuesday and Wednesday. ETH/USD is now testing the $3,000 level.
Source: Fx Street
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