April: Endgame April: Endgame April: Endgame

April: Endgame

Forex 3 minutes to read
MO
Michael O’Neill

FX Trader, Loonieviews.net

Summary:  Avengers: Endgame had a strong opening weekend, and the US dollar is having a strong April close. The greenback soared during the month, led by a 2.36% rally against the Swiss franc.


That move was fuelled by EURCHF demand and a dovish Swiss National Bank saying it would continue to delay monetary policy normalisation. NZDUSD fell 2.01% during the period. EURUSD was the best performing currency. It was unchanged compared to its March 29 New York closing level.

Change in US dollar vs G-10 major currencies March 29-April 30, (14:00 GMT):
 
Source Saxo Bank/IFXA
Month-end portfolio rebalancing flows have taken a toll on the US dollar since New York opened. GBPUSD has risen 0.78% gains while the single currency climbed 0.33%.(as of 13:45 GMT). The selling pressures were exacerbated by weaker than expected US economic data. Chicago PMI at 52.6 was below the 59.0 forecast. Other US data reports were as expected. The Q1 Employment Cost Index (ECI) rose 0.7 which unchanged from the previous reading. The Case-Shiller Home Price Index rose 3.0%, close to the 3.2% forecast and the results likely suffered from February’s weather problems.

USDCAD sellers were evident in early New York trading with the currency pair undermined by broad US dollar selling. Buyers emerged after Canadian economic data was weaker than expected. GDP shrank 0.1% in February. (forecast 0.0%.) The Raw Materials Price index was also soft, and USDCAD rallied on the news. However, the GDP data miss should be discounted due to lousy weather during the month.

Wall Street traders were not very impressed with Alphabet’s (GOOG: Nasdaq) results and today’s US economic reports didn’t help. The three major indices are trading lower compared to yesterday’s close but are still likely to finish the month with solid gains.
Chart: GBPUSD hourly. Source: Saxo Bank

Quarterly Outlook 2024 Q3

Sandcastle economics

01 / 05

  • Macro: Sandcastle economics

    Invest wisely in Q3 2024: Discover SaxoStrats' insights on navigating a stable yet fragile global economy.

    Read article
  • Bonds: What to do until inflation stabilises

    Discover strategies for managing bonds as US and European yields remain rangebound due to uncertain inflation and evolving monetary policies.

    Read article
  • Equities: Are we blowing bubbles again

    Explore key trends and opportunities in European equities and electrification theme as market dynamics echo 2021's rally.

    Read article
  • FX: Risk-on currencies to surge against havens

    Explore the outlook for USD, AUD, NZD, and EM carry trades as risk-on currencies are set to outperform in Q3 2024.

    Read article
  • Commodities: Energy and grains in focus as metals pause

    Energy and grains to shine as metals pause. Discover key trends and market drivers for commodities in Q3 2024.

    Read article


Business Hills Park – Building 4,
4th Floor, office 401, Dubai Hills Estate, P.O. Box 33641, Dubai, UAE

Contact Saxo

Select region

UAE
UAE

Trade responsibly
All trading carries risk. Read more. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more

Saxo Bank A/S is licensed by the Danish Financial Supervisory Authority and operates in the UAE under a representative office license issued by the Central bank of the UAE.

The content and material made available on this website and the linked sites are provided by Saxo Bank A/S. It is the sole responsibility of the recipient to ascertain the terms of and comply with any local laws or regulation to which they are subject.

The UAE Representative Office of Saxo Bank A/S markets the Saxo Bank A/S trading platform and the products offered by Saxo Bank A/S.