Today's Economic News

The US Dollar kicked off the new month on a positive trajectory, showcasing a notable gain for the day despite the closure of major markets for Easter Monday. Investors are closely monitoring incoming growth-related indicators and global developments amid speculation regarding a potential easing cycle by the Federal Reserve (Fed) in June.

The US dollar's favorable performance can be attributed, in part, to better-than-expected ISM PMI readings, which exceeded market forecasts. March's robust business activity report, signaling the highest growth since September 2022, may prompt the Fed to pause any immediate plans for easing monetary policy.

As major banks resume operations after the extended weekend, investors are particularly interested in key labor market data slated for release later in the week. These critical data points, including the Nonfarm Payrolls, Average Hourly Earnings, and Unemployment Rate figures, will offer vital insights into the economy's overall health. They are likely to influence market expectations concerning the Fed's future policy decisions.

Taking a deeper dive into recent movements and technical levels of major currency pairs as of April 2:

AUD/USD: Retreated from the 78.6% Fibonacci retracement level, falling to the 0.6482 support level due to a strengthening US dollar, exerting downward pressure on the Australian dollar.

NZD/USD: Continuing its downtrend post-breakout below the 0.5997 support level, the pair faces sustained bearish pressure, with market bears eyeing the critical 0.5871 support level as a potential target.

EUR/USD: Despite attempts to find bullish support, the pair slipped below the 1.0741-1.0761 zone, influenced by favorable ISM PMI figures strengthening the US dollar against the Euro.

GBP/USD: Breaking out of its sideways movement, the pair saw a significant 76-point drop, reflecting increased selling pressure on the British pound due to the robust US dollar performance.

USD/CAD: Finding support at the 1.3522 level, benefited from a strong US dollar environment, hinting at potential resistance challenges around 1.3598 and indicating a strengthening US dollar against the Canadian dollar.

USD/JPY: Despite attempts, the pair faced resistance at the 151.70 level, a critical barrier for the US dollar's advance against the Japanese yen, holding steady since mid-March.

USD/CHF: Making a recovery above the 0.9026 level, the pair eyes a retracement towards 0.9103 as market participants adjust positions, with the US dollar demonstrating strength against the Swiss franc.

In the commodities market:

Crude Oil is back in focus after breaking the $83.30 per barrel mark, its highest level since October 2023.

Gold prices surged to $2,265, marking a new record high before a slight retracement, showcasing resilience despite the strong start of the US dollar.

Silver trades within a range, hovering between $24.74 and $25.38, aiming to challenge the $25.45 resistance, reflecting a broader sideways market movement.

These market movements reflect ongoing volatility as investors respond to evolving economic data and geopolitical developments.

In the US stock market:

The S&P 500 experienced a notable pullback from its recent all-time high at $5,276.33, mirroring a similar trend seen in the Dow, which hit a high of $39,987 before retracing to $39,369. Meanwhile, the NASDAQ continues its sideways movement, indicative of the cautious sentiment prevailing in the market.

As the week progresses, market participants await further cues from Fed speakers and key economic data, crucial factors that will shape market sentiment and investor expectations regarding future monetary policy adjustments by the Federal Reserve. These developments are pivotal in guiding investment strategies and risk assessments in the days ahead.

Here's today's scheduled economic news and reports:

Tuesday, April 2:

ALL DAY - EUR - German Prelim CPI

ALL DAY - USD - Wards Total Vehicle Sales

TENTATIVE - NZD - GlobalDairyTrade Price Index

09:00 GMT+3 - GBP - Nationwide House Price Index (HPI)

09:30 GMT+3 - CHF - Real Retail Sales

10:00 GMT+3 - EUR - Spanish Unemployment Change

10:15 GMT+3 - EUR - Spanish Manufacturing PMI

10:45 GMT+3 - EUR - Italian Manufacturing PMI

10:50 GMT+3 - EUR - French Final Manufacturing PMI

10:55 GMT+3 - EUR - German Final Manufacturing PMI

11:00 GMT+3 - EUR - Final Manufacturing PMI

11:30 GMT+3 - GBP - Final Manufacturing PMI

           - GBP - M4 Money Supply

           - GBP - Mortgage Approvals

17:00 GMT+3 - USD - JOLTS Job Openings

           - USD - Factory Orders

17:10 GMT+3 - USD - FOMC Member Bowman Speaks

19:00 GMT+3 - USD - FOMC Member Williams Speaks

19:05 GMT+3 - USD - FOMC Member Mester Speaks

20:30 GMT+3 - USD - FOMC Member Daly Speaks