The US dollar was drifting after the gross domestic product and the footnote to tariffs
- DXY is trading near the 104.40 area after previous gains in customs tariffs fade on Thursday.
- Traders weighing useful domestic domestic product and car tariff news in exchange for following the limited market.
- Technical signals are still widely dominant despite some conflicting momentum indicators.
The US dollar index (DXY), which measures the value of the US dollar (USD) against a basket of currencies, is trading marginally less on Thursday near the 104.40 region after the council’s early gains. Greenback was initially reinforced by announcing the tariff of sudden cars from US President Donald Trump and GDP data in the fourth stronger quarter of expected, although mixed momentum indicators keep traders careful.
Daily Digest Market Movers: The US dollar withdraws despite the release of the optimistic gross domestic product
- The GDP of the United States for the fourth quarter has been revised to 2.4 % annually, overlooking expectations and estimating the previous 2.3 %.
- The Economic Analysis Office indicated the growth in consumers and government spending in the quarter -total of GDP, while imports and investment decreased.
- The unemployed demands for continuous work showed a decrease of 25,000 claims of 1.856 million, indicating the flexibility of the labor market.
- The moving average has decreased for four weeks of secure unemployment to 224,000, confirming the narrow employment conditions.
- US President Trump imposed a 25 % tariff on all car imports as of April 3, with more threats to Canada and the European Union (European Union).
- The market’s reaction to the data was kept kept with a mixed performance throughout the US cabinet that reduces the enthusiasm of the US dollar.
- The focus is now transmitted to the personal consumption expenses report, the Federal Reserve (Fed) is preferred.
Technical analysis
The US dollar index shows weaknesses on Thursday after recovering previous gains, which is currently fluctuating in the range of 104.07-104.65. Although a purchase indication of the different moving average rapprochement (MACD), the total bias remains down as the tilt -20, 100 and 200 days (SMA) averages are lower. The RSI Index (RSI) along with the random oscillator signs of the negotiating conditions, while the momentum index (10) and a wonderful oscillator indicates limited upward potential. The average trend index (ADX) at 29.777 indicates the power of neutral trend. The main resistance is seen at 104.296, 104.536 and 104.616. Support is found in 104.175 and 103.923.
Common questions about GDP
The GDP (GDP) measures its economy growth rate over a certain period of time, usually a quarter. The most reliable numbers are those that compare the GDP to the previous quarter, for example, Q2 of 2023 against Q1 for the year 2023, or to the same period in the previous year, for example Q2 for the year 2023 against Q2 for the year 2022. However, these can be misleading, if temporary shocks affect growth in one quarter but it is unlikely to continue throughout the year – as happened in the first quarter From 2020 at the outbreak of the roaming epidemic, when the growth decreased.
The result of the high gross domestic product is generally positive for the nation’s currency because it reflects an increasing economy, which is likely to produce goods and services that can be exported, as well as attracting higher foreign investments. In the same manner, when the gross domestic product falls usually it is negative for the currency. When the economy grows, people tend to spend more, which leads to inflation. Then the central bank in the country must put interest rates to combat inflation through the side effect to attract more capital flows from global investors, thus helping the local currency to estimate it.
When the economy grows and the gross domestic product is transmitted, people tend to spend more than inflation. Then the central bank in the country must put interest rates to combat inflation. High interest rates are negative for gold because it increases the costs of keeping gold in exchange for placing money in the cash deposit account. Therefore, the rate of GDP growth is usually the highest declining gold price factor.
