The US Dollar extended its losing streak against its major opponents, as Yellen comments on the need for weak Dollar prompted all-out USD selloff, which continues to gain pace. The currency depreciated against all main peers, as well as yielded to the developing markets’ currencies, such as the Russian Rubble, the Indian Rupiah,the Thai Baht, the Malaysian Ringgit and others. Investors are waiting for publication of the Initial Jobless claims report which has 265 as a medium estimate, matching with the previous month’s reading. On Friday, the Non-Farm Payroll report may ensure short-term consolidation of the US currency, but the main trend remains buoyant.
EUR/USD gained 0.45% to 1.1389, preparing for a leap to the 1.14 level. The Eurozone core inflation report beats expectation with 1% actual growth versus 0.9% estimate. German Unemployment rate matched the estimate of 6.2%, unemployment change showed 0K growth, though the forecast was -6K. GBP/USD added 0.10% to 1.4392, fuelled by the UK GDP report showing 2.1% growth.
USD/JPY sways around Wednesday’s closing level of 112.31.
Commodity currencies outperform the USD as well, supported by Oil appreciation. The EIA data released yesterday showed crude inventories rose less than expected, only 2.3M barrels vs 3.M projected. The glut concerns still provide an edge to Oil bears, though the market members expect the Oil producing nations to work out solutions for market stabilization at the Doha meeting on April 17.
The USD, index showing the value of the US dollar to the basket of other majors declined by 0.15% to 94.65, trading near the 5-months low of 94.56.
European indices fell on the weak Dollar, though the charts were levelled by energy shares gaining in value. DAX declined by 0.48%, FTSE 100 lost 0.21%, CAC 40 lost 0.98%, Euro Stoxx 50 dropped by 1.07%.
Chinese indices extend their gains for a third day in a row, CSI 300 stalls near closing levels with 0.06% growth.
MSCI Asia Pacific index grew by 0.82%.
Stay tuned for more and trade with Tickmill!