Here's what you need to know on Tuesday, April 30th.
After a volatile start to the week, financial markets remained relatively quiet early Tuesday. The first quarter gross domestic product (GDP) data for the euro zone and Germany will be closely watched. Eurostat will also release preliminary figures for the Harmonized Consumer Price Index (HICP) for April. U.S. economic data will feature housing data as the Federal Reserve begins its two-day meeting.
The US dollar (USD) weakened against its major rivals on Monday, with the USD index ending the day in negative territory. In Europe, the index recovered towards 106.00. Meanwhile, the yield on the benchmark 10-year U.S. Treasury remains above 4.6%, and U.S. stock index futures are trading slightly lower. Later in the day, April CB Consumer Confidence Index and first quarter employment cost index data will also be of interest.
USD price today
The table below shows the percentage change of the US dollar (USD) against major currencies today. The US dollar was the strongest against the Australian dollar.
| USD | EUR | GBP | CAD | australian dollar | JPY | new zealand dollar | Swiss franc | |
| USD | 0.09% | 0.21% | 0.19% | 0.61% | 0.34% | 0.55% | 0.18% | |
| EUR | -0.09% | 0.13% | 0.09% | 0.54% | 0.31% | 0.46% | 0.09% | |
| GBP | -0.20% | -0.11% | -0.02% | 0.40% | 0.14% | 0.34% | -0.02% | |
| CAD | -0.18% | -0.09% | 0.02% | 0.41% | 0.14% | 0.36% | -0.01% | |
| australian dollar | -0.61% | -0.51% | -0.39% | -0.41% | -0.27% | -0.06% | -0.42% | |
| JPY | -0.33% | -0.23% | -0.12% | -0.14% | 0.28% | 0.21% | -0.17% | |
| new zealand dollar | -0.53% | -0.46% | -0.34% | -0.36% | 0.06% | -0.20% | -0.32% | |
| Swiss franc | -0.16% | -0.09% | 0.02% | 0.01% | 0.43% | 0.19% | 0.37% |
The heat map shows the percentage change between major currencies. The base currency is selected from the left column and the quote currency is selected from the top row. For example, if you select Euro from the left column and move along the horizontal line to Japanese Yen, the percentage change displayed in the box represents EUR (base)/JPY (estimate).
In response to suspicions of interference in Japan's foreign exchange market, USD/JPY It fell to 154.50 in Asian trading on Monday. The pair erased some of the day's losses later in the day and continued its recovery towards 157.00 early Tuesday. Japan's top currency diplomat, Masato Kanda, responded to media questions about whether authorities had intervened in the market to support the yen, saying he would not comment on currency intervention for now. Kanda added that the Ministry of Finance will release figures on currency intervention at the end of May.
The Japanese yen is above 157.00 against the US dollar and is looking to US macro data for fresh stimulus.
euro/usd It registered a slight increase on Monday, but lost momentum on Tuesday. The pair was last trading around 1.0700. German statistics released earlier in the day showed retail sales rose 1.8% on a monthly basis in March, following a 1.9% decline recorded in February.
The Australian Bureau of Statistics reported on Tuesday that private sector credit rose at an annual rate of 5.1% in March, while retail sales fell 0.4% (month-on-month). Meanwhile, China's Caixin manufacturing PMI rose slightly in April to 51.4 from 51.1 in March, while the NBS non-manufacturing PMI fell to 51.2 from 53. Australian dollar/US dollar It came under strong bearish pressure following mixed data releases and fell towards 0.6500 during Asian trading hours.
Australian dollar falls towards psychological levels on weak retail sales.
GBP/USD It rose more than 0.5% on Monday, but reversed course early Tuesday. At the time of writing, it is down 0.25% on the day to around 1.2530.
Money The first trading day of the week struggled to find any sense of direction and ended largely unchanged. XAU/USD has been an underdog in the European session, trading below $2,330.
Frequently asked questions about inflation
Inflation measures the increase in the price of a representative basket of goods and services. Headline inflation is typically expressed as a percentage change on a month-over-month (MoM) and year-over-year (YoY) basis. Core inflation excludes more volatile components such as food and fuel, which can fluctuate due to geopolitical and seasonal factors. Core inflation is a number that economists focus on and is the level targeted by central banks, which are mandated to keep inflation at a manageable level (usually around 2%).
The Consumer Price Index (CPI) measures the change in the price of a basket of goods and services over a period of time. It is usually expressed as a percentage change on a month-over-month (MoM) and year-over-year (YoY) basis. Core CPI is a central bank target that excludes volatile food and fuel inputs. If core CPI rises above 2%, interest rates typically rise, and vice versa when it falls below 2%. A rise in interest rates is good for the currency, so a rise in inflation usually results in a rise in the currency. The opposite is true when inflation falls.
It may seem counterintuitive, but when a country's inflation rate is high, the value of its currency increases, and vice versa when its inflation rate is low. This is because central banks typically raise interest rates to combat rising inflation, which increases global capital inflows from investors looking for favorable places to park their money.
Previously, gold was an asset investors looked to during times of high inflation because it maintained its value. Investors still often purchase gold as a safe haven asset during times of extreme market turbulence, but this is not the case in most cases. . When inflation rises, central banks raise interest rates to counteract it. Rising interest rates are negative for gold because they increase the opportunity cost of holding gold as an interest-bearing asset or in a cash savings account. Conversely, lower inflation tends to be positive for gold as it lowers interest rates, making the bright metal a more viable investment option.
