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The FOMC decision AND GDP release are around the corner!

Think you’re ready to trade the dollar?

Here are possible catalysts that can move the Greenback this week:

Advance GDP release (Apr 29, 12:30 pm GMT)

  • The very first reading of Uncle Sam’s Q1 2020 GDP is expected to show a 2.3% dip after seeing 2.1% growth in Q4 2019
  • Remember that most businesses didn’t close until mid-March, which should lead to minimal disruption in the official Q1 growth numbers

FOMC statement (Apr 29. 6:00 pm GMT)

  • Market players aren’t expecting major policy changes from Governor Powell and his team this week
  • We could see updates on the Fed’s existing stimulus programs, hints of future easing measures, and the members’ outlook on the near- and medium-term economic growth
  • Powell will conduct a presser at 6:30 pm GMT

Read: Who Has Done What for Their Economies Since the Coronavirus Pandemic Hit?

Other closely watched economic data

  • Initial jobless claims (Apr 30, 12:30 pm GMT), which has reflected 22 million new claimants in the last five weeks, is expected to add another 3.5 million to its numbers this week
  • ISM’s manufacturing PMI (May 1, 2:00 pm GMT) could drop from 49.1 to 39.0 in April

Market risk appetite

  • 140 S&P 500 companies including Alphabet, Apple, Amazon, ExxonMobil, and McDonalds are slated to print quarterly reports this week. Weak reports can influence future GDP estimates and dollar demand
  • Coronavirus updates and their impact on plans to reopen key U.S. states can affect the dollar’s price action
  • Closely watched releases like the BOJ and ECB’s policy updates, as well as PMIs from China and the euro one, can also influence demand for safe havens like the dollar

Technical snapshot

  • USD has gained pips only against EUR and CHF in the last 30 days
  • USD lost the most pips against AUD, followed (loosely) by NZD

  • Williams %R considers USD as “oversold” against JPY

  • USD has been most volatile against AUD, NZD, and GBP in the last seven days

Missed last week’s price action? Read USD’s price recap for April 20 – 24!