Thursday April 30th FX Market Wrap

Good afternoon, 

Thursday April 30th FX Market Wrap

The US Dollar was mixed against all of its major pairs on Thursday. On the economic data front, Personal Income fell 2.0% on month in March (-1.7% expected), from +0.6% in February, a level last reached in 2013. Personal Spending dropped 7.5% on month in March (-5.1% expected), from +0.2% in February, marking a new record low. Initial Jobless Claims declined to 3,839K for the week ending April 25th (3,500K expected), from a revised 4,442K in the prior week. Continuing Claims rose to 17,992K for the week ending April 18th (19,476K expected), from a revised 15,818K in the week before, marking a new record high. Market News International's Chicago Business Barometer slipped to 35.4 on month in April (36.9 expected), from 47.8 in March, a low last reached in 2009. On Friday, Markit's U.S. Manufacturing Purchasing Managers' Index for the April final reading is expected to fall to 36.7 on month, from 36.9 in the April preliminary reading. Finally, Construction Spending for March is expected to fall 3.5% on month, from -1.3% in February.            

The Euro was bullish against most of its major pairs with the exception of the CHF and GBP. In Europe, the ECB kept its main benchmark interest rate at 0%. The institution said that the conditions on the targeted longer-term refinancing operations (TLTRO III) have been further eased.On the statistics front, the European Commission has posted 1Q GDP at -3.3% (vs -3.1% on year expected) and March jobless rate at 7.4% (vs 7.7% expected). The German Federal Statistical Office has reported April jobless rate at 5.8% (vs 5.2% expected) and March retail sales at -5.6% (vs -7.3% on month expected). France's INSEE has released 1Q GDP at -5.8% (vs -3.6% on year expected) and April CPI at +0.4% on year (vs +0.1% expected). 

The Australian dollar was bearish against all of its major pairs.

Regarding major FX pairs,

• EUR/USD gained 80pips to 1.0953 the day's range was 1.0833 - 1.0972 compared to 1.0819 - 1.0886 the previous session.

• GBP/USD jumped 127pips to 1.2596 the day's range was 1.2429 - 1.2643 compared to 1.2389 - 1.2486 the previous session.

• USD/JPY rose 53pips to 107.21 the day's range was 106.41 - 107.50 compared to 106.36 - 106.90 the previous session.

• USD/CHF dropped 81pips to 0.9656 the day's range was 0.9639 - 0.9759 compared to 0.9713 - 0.9768 the previous session.

• AUD/USD fell 40pips to 0.6517 the day's range was 0.6490 - 0.6570 compared to 0.6487 - 0.6558 the previous session.

• USD/CAD declined 46pips to 1.3927 the day's range was 1.3851 - 1.3959 compared to 1.3877 - 1.4004 the previous session.

• The dollar index slipped 0.55pt to 99.018 the day's range was 98.805 - 99.725 compared to 99.465 - 99.885 the previous session.

FX pair in focus,

The GBP/USD had the largest gain today. The question is if the pair can break key resistance at the 1.2645 level. For now, support rests at 1.2565 and we anticipate a consolidation until key levels are broken. 

Source: GAIN Capital, TradingView

Happy trading.
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