The U.S. dollar had massive weekly gains against all majors. The release of the gross domestic product for the first quarter of 2018 beat expectations but did little for a dollar that had rallied all week. Dovish central bank rhetoric from the European Central Bank and the Bank of Japan have increased the anticipation for the U.S. Federal Reserve’s Federal Open Market Committee on Wednesday, May 2 at 2:00 p.m. EDT.
The euro/U.S. dollar/U.S. dollar currency pair lost 0.34% during the last five days. The single currency is trading at 1.2288 as investors await the ECB to keep rates and quantitive easing unchanged on Thursday, April 26 at 8:30 am. Trade war fears and actual war concerns waned this week after putting downward pressure on the U.S. dollar.
The U.S. dollar lost against most majors even if it appreciated against safe-haven currencies on Friday. The Syrian conflict concerns faded at the end of the week and boosted the USD versus the JPY and the CHF. The release of the meeting notes from the March Federal Open Market Committee proved to be a positive for the American currency as the Fed was more hawkish than expected. Next up for the markets will be the release of retail sales data in the United States and the Bank of Canada (BoC) rate statements.
The U.S. dollar is mixed against major pairs after the U.S. non-farm payrolls (NFP) headline jobs number failed to meet expectations. The United States added 103,000 jobs short of the 193,000 jobs forecast. Wage growth came in as anticipated at 0.3% to keep the pressure on the U.S. Federal Reserve to raise interest rates.
The U.S. dollar gained against major pairs thanks to strong economic indicators and the end of month and quarter flows. The greenback had a positive week ahead of the Easter holiday. The first week of April will kick off with a plethora of U.S. economic data, the most important of all the U.S. non-farm payrolls. Central banks will get back into action with the Reserve Bank of Australia (RBA), although no changes to monetary policy are expected in the next meeting.