Daily Market Update

Dollar Falls; Euro Reaches 2-Month High

April 26, 2021

The U.S. dollar is once again under pressure.  The Bloomberg Dollar Index fell to its lowest level in two months. 

Overview

Overall, the dollar is down 2.0% this month and is headed for its biggest monthly loss since November. Later this morning, U.S. durable goods will hit the wire.  At 10:30 a.m., the April Dallas Fed Manufacturing Activity Index will be released. Earnings season will continue with major companies such as Apple and Facebook releasing earnings this week.

The Federal Reserve will conclude its two-day meeting on Wednesday.  Fed Chair Jerome Powell will hold a press conference following the meeting.  No changes to the current policy are expected to be announced. U.S. GDP is set for release on Thursday morning.  Economists estimate that the world’s largest economy grew at a breakneck 6.9% annualized pace in the first quarter after a more modest 4.3% growth in the fourth quarter of last year.


What to Watch Today…

  • Durable Goods Orders at 8:30 a.m.

View Economic Calendar

 

EUR 

The Euro popped higher and touched its strongest level since the end of February versus the U.S. dollar before settling a touch lower.  The Euro has gained 2.6% against the U.S. dollar in the month of April, regaining all of its losses from a tough March.  There was no major data released in the Eurozone, so the common currency is likely continuing to benefit from the improved vaccine rollout narrative.  The biggest risk events for the week will come on Friday in the form of European GDP.

 

AUD 

The Australian dollar is atop the G10 leader board this morning.  The Aussie advanced 0.6% versus its American rival after the price of iron ore rallied.  Iron Ore on SGX climbed to the highest since futures started trading in 2013.  Analysts point to robust Chinese demand as the cause for the rally.  Other metals, such as copper, rose to the highest level in a decade, further benefiting the Aussie dollar.

 

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