USD Trading Outlook
U.S. Dollar Trading (USD) risk was off the table on Friday in Asian trade as the China GDP reversed the positive momentum for a second day of gains from US markets overnight. The Q1 GDP came in at 8.1% vs. 8.3% forecast and rumours of 9.0% overnight. The big data miss was played out best through the AUD/USD which fell over 60 pips immediately after the result. Looking ahead, April UoM Consumer Sentiment forecast 76.2 vs. 76.2 previously. Also Federal Reserve Chairman Ben Bernanke Speaks
U.S. Dollar Trading (USD) FED speak Yellen hit the airwaves playing down speculation the FED will stop supporting the US economy anytime soon. Fed Speak from Lockheart suggested more bond buying was an option from the central bank and this combined with Yellen to reverse US stock market losses for their first gain in 5 sessions. Looking ahead, Weekly Jobless Claims forecast at 355k vs. 357k previously. February Trade balance forecast at -52bn vs. -52.6bn previously.
U.S. Dollar Trading (USD) traders sold heavily on Tuesday with the weak US jobs numbers combining with increasing European Bond Yields. Fears are rising that the Debt crisis might storm back into the markets with Spanish and Italian budgets both under pressure and recessions forecasted for most austerity hit EU countries. Looking ahead, Crude Oil Inventories forecast at 2mn vs. 9mn barrels the week before.
U.S. Dollar Trading (USD) with most stock markets still closed on Monday we saw a small push lower in Asia before grinding higher for the rest of the day on the back of bargain hunting. The only data yesterday was Chinese CPI which was higher than expected and raised questions as to whether they can loosen monetary policy to support a faltering growth outlook. Looking ahead, February Wholesale Inventories at 0.5% vs. 0.4%.
U.S. Dollar Trading (USD) disappointing US Jobs data sent most markets sharply lower with risk taken off the table Friday night. The chances of QE3 increased reversing the post FOMC minutes USD/JPY rally and we saw fresh month lows under Y82. The Euro and Aussie fell as safe haven demand for the USD outweighed the change in US monetary policy expectations as evidenced by the drop in long term US bond yields.March NonFarm gained 120k vs. 203k expected. Looking ahead, March Employment Trend previously at 107.5.
Go to U.S. Dollar (USD) Archive



