Market News & Analysis
Forex Stories: US Dollar Firm as Powell Rejects Negative Rates
On Wednesday the ICE U.S. Dollar Index gained 0.2% on day to 100.20. Federal Reserve Chairman Jerome Powell said they are not considering negative interest rates, despite a highly uncertain outlook and significant downside risks.
EUR/USD dipped 0.3% to 1.0820. Official data showed that the eurozone's industrial production dropped 11.3% on year in March (-12.5% expected). Germany's government said it aims to fully reopen borders by June 15.
GBP/USD fell 0.2% to 1.2236, posting a three-day decline. Official data showed that U.K. first-quarter GDP contracted 2.0% on quarter (-2.6% expected) and 1.6% on year (-2.2% expected). U.K. industrial production declined 4.2% on month (-5.6% expected) and manufacturing production slid 4.6% (-6.0% expected).
Source: GAIN Capital, TradingView
USD/JPY slipped 0.1% to 107.03.
NZD/USD plunged 1.3% to 0.6000. The Reserve Bank of New Zealand said it has decided to expand the Large Scale Asset Purchase programme potential to 60 billion New Zealand dollars from a previous limit of 33 billion New Zealand dollars, while keeping its benchmark rate unchanged at 0.25%. The central bank added: "The Monetary Policy Committee is prepared to use additional monetary policy tools if and when needed, including reducing the OCR further."
USD/CAD edged up 0.1% to 1.4092. Canada's manufacturing sales for March will be reported later today (-4.5% on month expected).
Meanwhile, AUD/USD lost 0.2% to 0.6456, down for a third straight session.
From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.
As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.