Today's Hot Financial News

Thursday saw a notable surge in the US Dollar, driven mainly by hawkish comments from Federal Reserve (Fed) official Waller, hinting at potential rate level stability for an extended time. This contributed to rising short-term bond yields and maintained positive sentiments across stock markets.

In the Eurozone, ECB Board member Fabio Panetta echoed sentiments about decreasing risks to price stability, signaling possible easing of monetary policy. This aligns with signals from President Christine Lagarde and various hints from ECB officials indicating a forthcoming rate cut.

Positive market sentiment was further supported by encouraging US economic data releases. The final Q4 Gross Domestic Product (GDP) figure was revised upward to 3.4%, beating the previous estimate of 3.2%. Initial Jobless Claims also surpassed expectations at 210K, reflecting a robust labor market. Moreover, the March Michigan Consumer Sentiment Index was revised upward to 79.4, exceeding the initial 76.5 estimate. Pending Home Sales in February outperformed expectations, contributing to the positive economic outlook.

With many markets closed due to the Easter Holiday, Japanese markets operated normally. The US was scheduled to release the core Personal Consumption Expenditures (PCE) Price Index later in the day, a critical inflation metric expected to remain stable.

Major Currency Movements on Friday:

AUD/USD retraced to the 0.6528 resistance level but encountered resistance due to an ongoing downtrend.

NZD/USD faced resistance at the 50-moving average on the 1-hourly chart amid a continuous downtrend.

EUR/USD struggled, hitting a weekly low of 1.0775 against the US Dollar.

GBP/USD traded sideways, finding support at 1.2617, with muted trading expected due to the holiday.

USD/CAD traded near the 1.3520 support level, benefiting from positive stock market performance.

USD/JPY reacted to the Tokyo Consumer Price Index (CPI) increase, while USD/CHF re-entered the 0.8990 - 0.9026 zone despite positive US data.

Commodity Market Highlights:

Crude Oil prices hovered near $83.29 per barrel, with Gold (XAU/USD) hitting another all-time high of $2,236 despite a strong US Dollar and rising Treasury yields. Silver also showed positive movement, trading around $24.90.

US Stock Market:

Major US stock indexes experienced volatile trading but ended with an overall optimistic outlook. The Dow Jones closed at $38,774, the S&P 500 tested resistance at $5,261, and the NASDAQ dipped, closing at $18,242. These indexes finished the quarter strongly near record highs, buoyed by positive economic indicators and investor confidence in economic resilience.

The USD is currently in a position of strength, but the long-term direction hinges on several factors, including the upcoming PCE data, the Fed's future monetary policy actions, and the global economic climate.