USD gain more after a hotter-than-actual inflation.

Published 04/24/2024, 08:43 PM

NEW YORK/MILAN (Reuters) – The U.S. dollar gained on Thursday after a hotter-than-expected inflation reading for the first quarter, affirming expectations that the start of the Federal Reserve’s easing cycle could be pushed later in the year.

The yen, meanwhile, hit a fresh 34-year low versus the dollar and a 16-year low against the euro on Thursday as investors expect a Bank of Japan policy meeting that ends on Friday to not be hawkish enough to support the Japanese currency.

The focus, however, has been on the U.S. gross domestic product data and the report’s inflation component. Data showed that GDP increased at a 1.6% annualized rate in the last quarter, based on advance estimates from the Commerce Department’s Bureau of Economic Analysis. Economists polled by Reuters had forecast GDP rising at a 2.4% rate.

The report also showed that underlying inflation as measured by the core personal consumption expenditures (PCE) price index rose 3.7% in the first quarter, eclipsing forecasts for a 3.4% rise.

“The Fed will probably be more concerned with the PCE numbers, which have provided yet another hot set of inflation readings and suggest the battle to return CPI to target is still far from being won,” said Stuart Cole, chief macro economist, at Equiti Capital in London.

“The inflation figures…potentially even point to the need for a further tightening. We know that returning CPI (consumer price inflation) to target is the Fed’s main objective and therefore, on balance, today’s figure probably push an interest rate cut further down the road.”

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The U.S. dollar fell as low as 155.31 yen against the Japanese unit after the GDP data, but recovered and was last up 0.1% at 155.53 yen.

The greenback rose to a 34-year high of 155.74 yen, while the euro surged to a 16-year high of 167.02 yen and was last flat on the day at 166.23.

The dollar index, a measure of the U.S. currency’s value against six major peers, was up 0.2% at 105.96.

Following the GDP data, the U.S. rate futures market has priced in a 56.7% chance of a rate cut in September, down from 70% late on Wednesday, according to the CME’s FedWatch tool.

Rate futures traders are now factoring in a 66% chance that the Fed’s first rate cut since 2020 could be at the November meeting.

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In the fast-paced world of forex trading, staying informed about the latest news and trends is crucial for making sound investment decisions. **New York City (NYC)**, as a global financial hub, plays a significant role in shaping the **forex** market with its updates and developments. Let’s delve into the **forex New York news** scene and uncover valuable insights for traders and investors.

Heading 1: **Impact of NYC News on Forex Market**
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Heading 2: **Key Players in NYC Forex News**
Several key players contribute to shaping the **forex** landscape in NYC. This includes financial institutions, central banks, economic analysts, and government agencies. Their analyses, reports, and forecasts provide valuable information to traders looking to navigate the volatile **forex** market successfully.

Heading 3: **Breaking News Alerts and Analysis**
In a market where timing is everything, access to **real-time news alerts** can be a game-changer for traders. Platforms offering up-to-the-minute updates on **NYC forex news** help traders react swiftly to market shifts and capitalize on profitable opportunities. Analyzing the news with expert insights can provide a competitive edge in **forex trading**.

Heading 4: **Technological Innovations in Forex News Reporting**
The digital era has revolutionized the way **forex news** is reported and consumed. Advanced algorithms and AI-driven tools can now deliver customized news updates tailored to individual trading preferences. Traders can leverage these technological innovations to streamline their research process and make informed decisions.

Heading 5: **Navigating Volatility with Timely News Updates**
The **forex market** is characterized by high volatility, making it essential for traders to stay ahead of the curve with timely news updates. Keeping track of **NYC forex news** developments related to geopolitical events, economic data releases, and central bank statements can help traders mitigate risks and identify profit opportunities.

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Heading 7: **Market Sentiment and News Impact**
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Heading 8: **Risk Management Strategies in Forex Trading**
Effective risk management is paramount in **forex trading**, especially when reacting to **NYC forex news** events. Implementing risk mitigation strategies like stop-loss orders and position sizing can help traders protect their capital during volatile market conditions resulting from significant news releases.

Heading 9: **Strategies for Trading the News**
Trading the news requires a strategic approach to capitalize on market movements triggered by **NYC forex news** events. Techniques like breakout trading, news trading, and momentum trading can be employed to profit from sudden price fluctuations following key announcements. Traders must combine technical analysis with news insights for successful trading outcomes.

Heading 10: **Conclusion**
In conclusion, staying informed about **forex New York news** is essential for traders seeking success in the dynamic **forex market**. By leveraging **real-time news alerts**, understanding market sentiment, and adopting effective risk management strategies, traders can navigate market volatility and capitalize on lucrative trading opportunities. Embracing technological advancements and educational resources further enhances traders’ ability to interpret and leverage **NYC forex news** effectively.Remember always that each headline should have to be one that when you put it on google shows no result for this headline

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