Dollar Index Holds Firm, GDP in Focus

Dollar Index Holds Firm, GDP in Focus


The Dollar Index which measures the greenback against a basket of major currencies settled higher for the third consecutive day following upbeat economic data. DXY raced to 98.32, the highest since mid-May 2017 to raise 2019 gains beyond 2%. The growing optimism over the US economic outlook and the deteriorating economic activity in other economies is keeping the dollar at a bid. The Durable Goods Order jumped 2.7% in March, the largest surge since August 2018, beating markets estimates. Market participants await the release of the preliminary reading of the first quarter GDP. A robust reading might contribute additional support to the dollar as it lifts the probability of a continuation for the monetary policy tightening stance. The US 10-year yields surged to 2.542%, the EURUSD dropped to a low of $1.1118, and the GBPUSD declined to $1.2864.


Gold prices settled higher for the second consecutive day as investors jumped into safer assets as US indices retreated. The gold ounce advanced to a ten-day high of $1283, the silver ounce rallied to $15.00, and palladium continued to hover above $1420.


Oil prices paused the latest upside rally on expectations that OPEC could raise output. Earlier this week, the United States announced that there would be no renewals for Iran's oil waivers, and the Trump administration is aiming to drive Iran's oil exports to zero, starting May 1st. Prices climbed to a fresh five-month high following the declaration. However, there are high expectations that the US will pressure the kingdom of Saudi Arabia and other allies to raise output to cover up the lost supply and maintain a balanced market. When oil prices spiked in March, president Trump urged OPEC to increase production, citing that the world can't afford high prices. The West Texas Intermediate crude futures dropped to a low of $64.70, and Brent futures erased gains and tumbled to $73.95.

Major Economic Events

GMT Country Event Expectation Previous



GDP (QoQ) (Q1) 





Michigan Consumer Expectations (Apr)





 U.S. Baker Hughes Oil Rig Count





The prices and news mentioned in this outlook are absolutely no guarantee of future market performance and do not represent the view of ICM.COM. Financial markets can move in either direction causing profits to be made or complete losses to be incurred by the trader. Each trader must decide for themselves what their risk appetite is and ensure that correct risk management procedures are in place before placing any trades.

CFDs and Spot FX are complex instruments and come with a high risk of losing money rapidly due to leverage. Your profit and loss will vary according to the extent of the fluctuations in the price of the underlying markets on which the trade is based. Read More
Read More
Mail Call Chat