The U.S. dollar extended its recovery on Thursday, April 24, amid positive headlines surrounding the U.S.-China trade crisis and alleviated concerns about potential threats to the Federal Reserve’s independence from former President Donald Trump. Key U.S. economic data to watch includes the weekly Initial Jobless Claims, the Chicago Fed National Activity Index, Durable Goods Orders, and Existing Home Sales. The U.S. Dollar Index (DXY) advanced further, approaching the psychological 100.00 barrier and marking its second consecutive day of gains.
The euro experienced additional selling pressure, challenging the key support at 1.1300. Germany’s IFO Business Climate Index will be the primary focus on the domestic calendar. The British pound fell below the 1.3300 support level, reaching new four-day lows due to the persistent strength of the US dollar.
Across the Channel, the UK will release the CBI Business Optimism Index and Industrial Trend Orders. The Japanese yen gained momentum, with USD/JPY surpassing the 143.00 mark to reach new multi-day highs.
Dollar extends gains amid optimism
The weekly readings of foreign bond investment are also anticipated. WTI crude oil prices dropped to four-day lows, falling below $62.00 per barrel amid speculations that OPEC+ might increase crude oil output next month. Gold prices faced downward pressure, declining below $3,300 per troy ounce due to a stronger U.S. dollar and receding U.S.-China trade concerns.
Conversely, silver rallied to three-week highs, trading around $33.70 per ounce. Bitcoin (BTC) faced a slight correction, trading around $92,000 on Thursday after rallying 8.55% earlier in the week. Institutional demand remained strong, as evidenced by a significant inflow of $916.91 million into U.S. spot Exchange Traded Funds (ETFs) on Wednesday.
Market participants remain focused on whether the U.S. will strike a trade deal with Japan, which could signal positive progress. However, recent developments are sending mixed signals, and market movements are expected to be heavily influenced by upcoming headlines and new U.S. economic data.
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