4/30/2021 1:26:52 PM GMT | By Pablo Piovano
DXY keeps the daily advance well in place near 91.00.
US yields appear side-lined around the 1.65% area.
US Core PCE rose 1.8% YoY, headline PCE up 2.3% YoY.
The greenback stays bid and flirts with the key hurdle at the 91.00 area when measured by the
US Dollar Index bid on data, month-end flows
The buying pressure remains well and sound around the dollar in the second half of the week, so far motivating the index to close the week in the positive territory for the first time after three pullbacks in a row.
Month-end flows and the offered bias in the risk complex continue to sustain the move higher in the buck, helped at the same time by the rebound in US yields.
Apr 30, 2021 09:03 GMTForex News
GBP/USD has been edging off the highs as rising US yields boost the dollar.
PM Johnson’s issues and upbeat US data could drag cable down.
Friday’s four-hour chart is pointing to gains.
Fundamentals or technicals?
The last day of the month is already set to be choppy amid last-minute portfolio adjustments, and the contradicting signals between both approaches may cause more confusion. However, two factors may outweigh what the charts show.
First, the greenback is making a comeback and this is set to extend. The
dollar suffered from the Federal Reserve’s dovish decision on Wednesday, in which the central bank rejected tapering down its bond-buying scheme, stressed inflation is transitory and said that the economy has a “long way to go.” However, figures published on Thursday showed that way is shorter.
Apr 30, 2021 10:57 GMTForex News
EUR/USD has been edging lower after weak German GDP and rising US yields.
America’s outperformance may cause further falls for the currency pair.
Friday’s four-hour chart is still pointing to further gains.
EUR/USD has taken one step down, is it time for two steps up? That has been the pattern throughout April and technicals suggest that the currency pair could resume its gains. However, there are reasons that this fall could be different, perhaps more profound.
First, Friday is the last end of the week and also the
final day of April, and that means that money managers may be adjusting their portfolios. At current levels, the currency pair is some 400 pips off the levels at the beginning of the month, implying room for a downward correction.
4/30/2021 8:28:22 AM GMT
EUR/USD has been edging lower after weak German GDP and rising US yields.
America s outperformance may cause further falls for the currency pair.
Friday s four-hour chart is still pointing to further gains.
EUR/USD has taken one step down, is it time for two steps up? That has been the pattern throughout April and technicals suggest that the currency pair could resume its gains. However, there are reasons that this fall could be different, perhaps more profound.
First, Friday is the last end of the week and also the
final day of April, and that means that money managers may be adjusting their portfolios. At current levels, the currency pair is some 400 pips off the levels at the beginning of the month, implying room for a downward correction.
Currencies/Fixed Income
- Slightly higher US yields helped to stabilize the USD but the greenback remained on track to register its fourth straight weekly decline and its longest weekly streak of losses since last July. The USD softness being attributed to Fed Chief Powell s acknowledgment that it needed further evidence of substantial further progress toward recovery to warrant a change to its ultra-loose monetary settings.
- EUR/USD brushed aside various Q1 GDP readings and ignored the prospect of a double-dip recession in the region. Dealers appeared to be looking at recent data reports that suggested an underlying strength and an accelerating recovery for the region. The overall take was that the region lockdown-resilient economy would soon exit recession as businesses and consumers should begin fueling a recovery in 2Q.