Currency Market Analysis

Apr 30, 2019 | Currency Market Analysis

Global Themes

USD higher as US sharemarkets climb

US sharemarkets, including the S&P 500 and Nasdaq, both finished at their highest-ever closing prices overnight.

The US dollar index, a key measure of US dollar strength, neared two-year highs last week.

Might the US dollar turn even stronger? Markets are looking for a dovish turn from the US Federal Reserve when it next meets on Thursday morning.

If the Fed stays positive, the US could gain further.

BoE ahead

In other markets, the British pound gained ahead of this week’s Bank of England meeting.

The BoE is expected to keep rates on hold with a 25% chance of a hike by the end of the year.

Chinese data key today

The big focus today is Chinese manufacturing PMI with the index above 50 last month for the first time since November.

Any reading above 50 is a sign of economic expansion.

The Caixin Chinese manufacturing numbers are due at 9.45am.

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