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The dollar climbed higher by about 0.5% towards $101.70 against the majors while the greenback is still pressured by expectations that the Fed might soon end its tightening cycle while a slowdown in growth and higher inflation prints might support the currency with potential further rate-hikes.

• The US economy grew at about 1.1% less-than-expected as investment growth slowed and inventories declined as the elevated interest rates kept pressure on the housing market.
• Spending by consumers kept the mood of investors high while inflation rose to the highs of the Year.
• Another 25 bps rate-hike is expected from the Fed next week in May as probabilities showing cuts in the second half of the Year as possible.
• Equities were running higher because of the positive earnings from mega-cap technology corporations, keeping the economy shorting to squeeze in yesterday’s session which repaired two days of declines.
   

About to know for the session:

• Amazon’s price pulled back after executives said that the cloud computing sales growth is slowing, which initially soared by positive earnings to about 12%.
• The Bank of Japan keeps its ultra-supportive monetary policy in place which lets the dollar appreciate and the yen plunge. It was the first meeting under Governor Kazuo Ueda’s leadership.
• The European Central Bank will hike with just 25 bps, according to estimates of lower bank lending, potentially followed by two other hikes this Year.
• Emergency borrowing from the Fed increased again towards $155.2 vs $143.9 billion after the stock price of the First Republic Bank dropped again.

The dollar has a slightly bearish biased calculation for the session as the index appreciated towards the month’s upper value extreme and above swing highs which might initiate absorption and long liquidation, depending on the PCE price data – a lower print might be pressured while an increase in prices could lead the greenback to elevated levels due to possible further rate-hikes.

1 Week Ago

The intraday interval trades above the prior session’s balanced price range, leading market participants to possibly add around the developing VWAP while auctioning back into the particular price range might lead to further selling.

The current higher dollar might be able to sell commodities such as Gold, Copper, or even Crude oil which all traded lower in the European trading session.

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