Forex Today: Key Economic Data to Watch for Volatility

Forex Markets Brace for Impact of Economic Data Releases

Good morning, forex traders! The market is keeping a close eye on things today as we get some major economic data from around the world. These numbers could shake things up, so buckle up!

Eurozone and US in Focus

In Europe, we’re watching for Germany and the Eurozone’s first-quarter GDP growth. They’ll also be releasing monthly unemployment rate and consumer price index (CPI) figures for Germany. Across the pond, the US Bureau of Economic Analysis will unveil its first estimate of the Q1 GDP and the Personal Consumption Expenditures (PCE) Price Index for March.

Investors will also be looking at the ADP Employment Change data, which gives us an idea of how the US job market is doing.

US Dollar: Holding Steady

The US Dollar Index edged higher on Tuesday, but then gave those gains back at the end of the day. The data from the US showed that JOLTS Job Openings came in a little lower than expected in March. Right now, the US Dollar Index is hovering around 99.00.

Australian Inflation Steady

The Australian Bureau of Statistics reported that inflation in Australia remained steady at 2.4% in the first quarter. This was a bit higher than analysts expected. Australian Treasurer Jim Chalmers said that he doesn’t think this data will change market expectations for interest rate cuts.

Other Currencies on the Move

EUR/USD failed to build on Monday’s gains and is moving sideways below 1.1400. GBP/USD is also holding steady around 1.3400. USD/JPY found some support after Monday’s big drop and is edging higher toward 143.00. Keep an eye on the Bank of Japan announcement on Thursday, as that could have an impact on USD/JPY.

Gold Trading RangeBound

Gold is moving up and down in a tight channel above $3,300.