Fed Stays Dovish, US Pr. Biden Unveils New Stimulus Plan

FED STILL NOT READY TO DISCUSS TAPERING, BIDEN PROPOSES 1.8TRLN SPENDING PLAN

The US dollar traded lower against all the other G10 currencies on Wednesday and during the Asian session Thursday. It lost the most ground versus NOK, CAD, SEK, and NZD in that order, while it underperformed the least against JPY.

NZD/USD — TECHNICAL OUTLOOK

This morning, NZD/USD went for a new weekly high, this way showing that the bulls continue to dictate the rules. Also, the pair is balancing above a short-term tentative upside support line taken from the low of April 13th. As long as that line stays intact, we will continue aiming higher.

AUD/JPY — TECHNICAL OUTLOOK

AUD/JPY continues to move higher on a steep incline, after reversing higher on April 23rd. At the same time, the pair continues to balance above a short-term upside support line taken from the low of the reversal day. So far, the near-term outlook looks positive. More buyers could join in if the rate rises above the 84.80 barrier, marked by the current high of today. We will remain positive, for now.

AS FOR THE REST OF TODAY’S EVENTS

During the European session, Germany’s preliminary inflation data for April is due to be released. The CPI rate is expected to have ticked up to +1.8% yoy from +1.7%, while the HICP one is anticipated to have held steady at +2.0% yoy. This is likely to raise speculation that Eurozone’s headline CPI, due out on Friday, may also rise somewhat.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
JFD

JFD

JFD is a leading Group of Companies offering financial and investment services and activities.