USD crashed, but why? Overview for 14.04.2023
EURUSD on Friday remains strong. The current quote is 1.1070.
What happened that the USD slipped to its 12-month lows? In fact, there was nothing unusual. The macroeconomic statistics published yesterday confirmed a decline in inflation and gave the market a new argument supporting the upcoming end of the tight credit and monetary policy of the US Fed.
The mentioned statistics were the PPI report for March. The figure dropped significantly over the reporting period - to 2.7% y/y from 4.9% in February, or by 0.5% m/m.
The statistics came out much better than expected. If not only the consumer inflation but also the PPI is falling, the Fed will have no trumps for further lifting the interest rate.
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboMarkets bears no responsibility for trading results based on trading opinions described in these analytical reviews.
The material presented and the information contained herein is intended for our customers, and is for information purposes only and in no way should be considered as the provision of investment advice for the purposes of Investment Firms Law L. 87(I)/2017 of the Republic of Cyprus or any other form of personal advice or recommendation, which relates to certain types of transactions with certain types of financial instruments.