With the exception of a little increase against the yen, the US dollar fell against its main trading partners early on Thursday in anticipation of the release of the February international trade statistics and weekly unemployment claims data.
The market is anticipating an update to the Atlanta Federal Reserve’s Nowcast forecast of the gross domestic product as well as weekly natural gas stockpiles.
The speaking engagements by Federal Reserve officials are still packed, with Richmond Fed President Tom Barkin and Chicago Fed President Austan Goolsbee scheduled to speak on Thursday and Friday, respectively.
Everybody except Goolsbee casts a ballot this year; he will do it again in 2025. Fed Chair Jerome Powell and Kugler reaffirmed on Wednesday that the FOMC may exercise patience and hold off on cutting interest rates until they see more proof of a slowing economy.
Meanwhile l, Atlanta Fed President Raphael Bostic, a voter on the FOMC this year, repeated that he expects only one rate cut this year, likely in Q4. Naira Devaluation Deepens Economic Crisis in Nigeria
A quick summary of foreign exchange activity heading into Thursday showed that USDEUR
rose to 1.0860 from 1.0836 at the Wednesday US close and 1.0776 at the same time Wednesday morning.
The Eurozone’s services purchasing managers’ index rose modestly in March, indicating faster expansion, while producer prices declined in February, data released earlier Thursday showed. The next European Central Bank meeting is scheduled for April 11.
GBPUSD rose to 1.2658 from 1.2653 at the Wednesday US close and 1.2578 at the same time Wednesday morning.
UK services PMI fell modestly in March but remained above the breakeven point that indicates expansion, data released Thursday showed. The next Bank of England meeting is scheduled for May 9.
USDJPY rose to 151.6994 from 151.6978 at the Wednesday US close but was below a level of 151.7118 at the same time Wednesday morning. No Japanese data were released overnight. The next Bank of Japan meeting is scheduled for April 25-26.
USDCAD fell to 1.3500 from 1.3527 at the Wednesday US close and 1.3572 at the same time Wednesday morning. Canadian international trade data for February are due to be released. The next Bank of Canada meeting is set for April 10.
