Next, what you need to know on Tuesday, April 15:
The action in the financial markets becomes quietly early on Tuesday, since investors finally take a respite after the savage fluctuations of the previous week. Eurostat will publish the February industrial production data later in the session. In the second half of the day, Canada’s inflation data, the export price index and the US import price index will be closely observed by investors.
US dollar price this week
The lower table shows the percentage of the US dollar change (USD) compared to the main currencies this week. American dollar was the weakest currency against the New Zealand dollar.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.07% | -1.05% | -0.46% | -0.01% | -1.20% | -1.60% | -0.40% | |
| EUR | -0.07% | -0.63% | -0.10% | 0.37% | -0.54% | -1.24% | -0.04% | |
| GBP | 1.05% | 0.63% | 0.93% | 0.99% | 0.09% | -0.61% | 0.60% | |
| JPY | 0.46% | 0.10% | -0.93% | 0.45% | -0.96% | -1.35% | 0.22% | |
| CAD | 0.01% | -0.37% | -0.99% | -0.45% | -1.15% | -1.59% | -0.46% | |
| Aud | 1.20% | 0.54% | -0.09% | 0.96% | 1.15% | -0.69% | 0.51% | |
| NZD | 1.60% | 1.24% | 0.61% | 1.35% | 1.59% | 0.69% | 1.24% | |
| CHF | 0.40% | 0.04% | -0.60% | -0.22% | 0.46% | -0.51% | -1.24% |
The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the US dollar of the left column and move along the horizontal line to the Japanese yen, the percentage change shown in the box will represent the USD (base)/JPY (quotation).
He US Dollar Index (USD) It moves up and down in a narrow range below 100.00 after closing the day slightly down on Monday. The president of the USA, Donald Trump, said Monday night that his administration will examine the semiconductors and the entire electronics supply chain in the next investigations on national security tariffs. Trump also said he hopes to impose tariffs on the imported pharmaceutical products in a “not too distant future.” Futures of US stock indexes are quoted slightly on the European morning on Tuesday, after the main Wall Street indices earned between 0.6% and 0.8% on Monday.
After the record increase of the previous week, the Gold remains in a consolidation phase above $ 3,200 after closing little changed on Monday.
It is expected that the consumer price index (CPI) in Canada will increase 2.6% at an annual level in March, matching the February increase. USD/CAD It remains relatively quiet and moves laterally above 1,3850 early Tuesday. On Wednesday, the Bank of Canada will announce monetary policy decisions.
USD/JPY He lost about 0.3% on Monday and closed the third consecutive day in negative territory. The pair recovers around 143.50 in the European morning on Tuesday. Japanese finance minister Shunichi Kato repeated on Tuesday that excessive volatility in financial markets would negatively affect economic and financial stability.
AUD/USD It preserves its bullish impulse and trades in positive territory above 0.6350 in the early hours of Tuesday. The minutes of the April monetary policy meeting of the Bank of the Australian Reserve (RBA) showed that the members of the Board agreed that the May meeting would be an appropriate time to reconsider the policy perspectives, but indicated that the decision was not predetermined.
EUR/USD It remains stable around 1,1350 in the first European session on Tuesday.
GBP/USD He won almost 0.8% on Monday and continued to rise early on Tuesday. At the time of publication, the PAR was negotiated at its highest level since October, above 1,3200. The United Kingdom National Statistics Office (ONS) reported early that the ILO unemployment rate remained stable in 4.4% in the three months until February, matching the market expectation. On Wednesday, the ONS will publish inflation data for March.
FAQS inflation
Inflation measures the rise in prices of a representative basket of goods and services. General inflation is often expressed as an intermennsual and interannual percentage variation. The underlying inflation excludes more volatile elements, such as food and fuel, which can fluctuate due to geopolitical and seasonal factors. The underlying inflation is the figure on which economists focus and is the objective level of central banks, which have the mandate of maintaining inflation at a manageable level, usually around 2%.
The consumer price index (CPI) measures the variation in the prices of a basket of goods and services over a period of time. It is usually expressed as an intermennsual and interannual variation. The underlying IPC is the objective of the central banks, since it excludes the volatility of food and fuels. When the underlying IPC exceeds 2%, interest rates usually rise, and vice versa when it falls below 2%. Since higher interest rates are positive for a currency, higher inflation usually translates into a stronger currency. The opposite occurs when inflation falls.
Although it may seem contrary to intuition, high inflation in a country highlights the value of its currency and vice versa in the case of lower inflation. This is because the Central Bank will normally raise interest rates to combat the greatest inflation, which attracts more world capital tickets of investors looking for a lucrative place to park their money.
Formerly, gold was the asset that investors resorted to high inflation because it preserved their value, and although investors often continue to buy gold due to their refuge properties in times of extreme agitation in the markets, this is not the case most of the time. This is because when inflation is high, central banks upload interest rates to combat it. Higher interest rates are negative for gold because they increase the opportunity cost to keep gold in front of an asset that earns interest or place money in a cash deposit account. On the contrary, lower inflation tends to be positive for gold, since it reduces interest rates, making bright metal a more viable investment alternative.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
