A mix of catalysts caused topsy-turvy price action for the dollar. Will we see a more consistent trend with this week’s catalysts?
Check out the market events you need to know about!
Initial jobless claims (Apr 23, 12:30 pm GMT)
- As an early indicator for the labor market, traders look to the report for clues on the official monthly data
- Last week’s saw an additional 5.25 initial claimants, bringing the total to 22 million newly unemployed workers in the past month
- Analysts predict a 4-million addition this week
Flash Markit PMIs (Apr 23, 1:45 pm GMT)
- Manufacturing dropped from 50.7 to a 127-month low of 49.2 in March
- Services dropped to a series low of 39.1 from February’s 49.4
- USD initially edged higher but soon trended lower on overall risk appetite
- Manufacturing PMI could drop to 37.0 in April
- Services PMI could hit 30.0 for the month
Market risk sentiment
-
- As a safe haven, traders flock to the dollar when they avoid higher-yielding, often riskier currencies
- The number of coronavirus cases and how authorities respond to the health and economic challenges will continue to drive risk sentiment
- Earnings reports of major U.S. companies can also affect demand for the U.S. dollar
- Top-tier data releases from other major economies can factor in overall risk taking
Technical snapshot
- The dollar has lost pips to ALL of its major counterparts in the last 30 days
- USD is on bullish trends against CAD, EUR, and maybe CHF on the daily time frame
- USD could see retracements or reversals against NZD, AUD, and maybe GBP
- USD is still bearish against JPY
- USD has been most volatile against NZD, AUD, GBP, and CAD in the last seven days
Missed last week’s price action? Read USD’s price recap for April 13 – 17!
