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MTrading Team • 2023-04-27

Gold buyers cheer US Dollar weakness ahead of key GDP data

Gold buyers cheer US Dollar weakness ahead of key GDP data

Risk appetite improves on early Thursday as traders await the US Q1 GDP data amid hopes of higher Fed rates for longer. Among the leading positives for the market, the US House of Representatives’ passage of a bill to begin the negotiations about debt ceiling extension gains major attention. On the same line could be upbeat earnings from global technology giants.

It’s worth observing that the US Dollar appears mildly offered as the latest Durable Goods Orders came in firmer. Also challenging the greenback sellers could be the sluggish yields and mixed performance of the Asia-Pacific equities, as well as minor gains of the US stock futures.

With this, the NZDUSD leads the G10 currency pair gainers while the EURUSD, GBPUSD, USDCAD and USDJPY are more or less unchanged.

Gold price remains firmer amid cautious optimism in the market and braces for the first weekly gain in three. On the other hand, Brent oil prices grind near the monthly low, printing minor gains of late.

BTCUSD and ETHUSD are also positive amid a softer US Dollar and optimism on the cryptocurrency front.

Following are the latest moves of the key assets:

  • Brent oil prints mild gains around the monthly low, up 0.35% near $78.40 at the latest.
  • Gold price markets the biggest intraday upside, so far, in two weeks as it rises to $2002 as we write.
  • USD Index remains depressed near 101.40, down for the second consecutive day.
  • Wall Street closed mixed and weighed on the Asia-Pacific shares. However, equities in Europe and the UK are mildly bid during the initial hour.
  • BTCUSD and ETHUSD remain firmer around $28,900 and $1,890 by the press time.
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Optimists rise!

Nothing major has changed in the last few days of the global market trading. However, mixed US data and one more step towards solving the US debt default fears, as well as global central banks’ optimism of no banking fallout fears despite the First Republic Bank’s slump, keeps traders hopeful.

Even so, expectations of higher rates from the Fed and the ECB seem to challenge the traders and rather allow them to turn towards the traditional risk safety, namely the Gold, Japanese Yen and Swiss Franc. Among them, the upbeat performance of China adds strength to the Gold price.

Elsewhere, Crude Oil licks its wounds after a heavy slump but major currencies, except for NZDUSD and AUDUSD, struggle to cheer the US Dollar's weakness.

BTCUSD and ETHUSD cheer the cryptocurrency traders’ ability to stay optimistic despite huge position liquidations and looming regulatory fears.

  • Strong buy: USDJPY
  • Strong sell: ETHUSD, GBPUSD
  • Buy: USD Index, USDCAD, Nasdaq, EURUSD
  • Sell: DAX, FTSE 100, gold, BTCUSD, AUDUSD

It’s all about US GDP…

The first readings of the US Q1 2023 GDP become crucial for market players as it serves the twin purpose of guiding the Fed rates and attesting to the recession woes. That said, the world’s biggest economy is expected to register softer growth during the first quarter of the current year. However, any negative surprise may bolster economic slowdown fears and propel the US Dollar.

May the trading luck be with you!