The US dollar reached its highest point for almost two years on Thursday after forex traders across the globe lapped up the greenback’s offer.
A series of highly positive data releases from the US fuelled this development, including a capital goods orders release which showed that March’s increase was the greatest since well into last year.
The dollar managed to surpass many of its major rivals across the course of the day, pushing them into less than desirable territory.
The EUR/USD pair, for example, went down by almost a fifth of a percentage point and reached $1.1132, which represents its worst performance since May 2017.
However, the dollar did not manage to succeed in every pair. It went down by almost half a percentage point compared to the Japanese yen – largely due to the Bank of Japan’s decision to announce that it won’t be raising interest rates until 2020 at the earliest.
As this trading week comes to an end, forex professionals will still need to look out for developments today and into next week.
Today (Friday) there will be a number of key events, including a speech from Thomas Jordan, chair of the Swiss National Bank, at 8am GMT.
The US Bureau of Economic Analysis will release its preliminary annualised gross domestic product metric at 12.30pm GMT covering the first quarter of 2019. It is expected to show a change from 2.2% to 2.1%.
Information on personal consumption expenditures is due to be released by US Department of Commerce at the same time. This will also cover the first quarter of the year and is expected to show a quarter on quarter change from 1.5% to 1.3%.
Looking ahead to the week to come, Monday will see a slight pause in activity in Asia thanks to the Showa Day public holiday in Japan.
Industrial confidence data will come out of Europe at 9am GMT, covering the month of April. It is expected to show a change from -1.7 to -2.6.
US personal spending information for February and March will be out at 12.30pm GMT. Personal income information for the same month will be out then too and is forecast to show a change from 0.2% to 0.4%.
On Tuesday, preliminary European gross domestic product information is expected at 9am GMT. This is expected to show a quarter on quarter change from 0.2% to 0.3%.
The preliminary German harmonised index of consumer prices for April will be out at 12pm GMT. Year on year, this is forecast to show a change from 1.4% to 1.6%.
New Zealand employment data will round off the day later. The overall unemployment rate for the first quarter of the year is expected to show a change from 4.3% to 4.4% when it comes out at 10.45pm GMT.
The labour cost index for the same period will be out at the same time. This is expected to show no quarter on quarter change from its previous recorded position of 0.5%.