The United States of America

USD is weakening against EUR, JPY, and GBP.

Due to a lack of significant economic releases, currency movements are due to external factors. On Wednesday, investors are awaiting the results of the US Fed meeting: experts are confident that the interest rate will remain at 5.50%, and agency representatives will confirm the likelihood of a long-term preservation of the “hawkish” course against macroeconomic statistics. Thus, in March, the price index of personal consumption expenditures increased from 2.5% to 2.7% YoY, and the core indicator remained at 2.8% instead of the predicted decrease to 2.6%, demonstrating the continued high dynamics of consumer price growth. Most analysts expect borrowing costs to be cut just once this year, in September, and some economists say monetary policy could be tightened if inflation picks up.

Eurozone

EUR is weakening against GBP and JPY but strengthening against USD.

In April, the German preliminary consumer price index increased from 0.4% to 0.5% MoM compared to forecasts of 0.6% and remained at 2.2% YoY, although experts expected it to reach 2.3%. The harmonized indicator stayed at 0.6% MoM and adjusted from 2.3% to 2.4% YoY. Inflationary pressures in the region’s leading economy have intensified due to higher-than-expected increases in food prices and a slowdown in the decline in energy costs. However, analysts believe that these statistics will not affect the decisions of European Central Bank (ECB) officials to ease monetary policy at the June meeting.

The United Kingdom

GBP is strengthening against EUR and USD but weakening against JPY.

On Tuesday, investors focus on the March consumer lending data, which may increase by 1.6B pounds from 1.4B pounds previously, with the mortgage figure adjusted by 1.1B pounds, less than 1.5B pounds last month, and the figure for net personal lending was 1.6B pounds below February’s 2.9B pounds. The implementation of forecasts will confirm the recovery of the construction sector but will also indicate continued pressure on household finances.

Japan

JPY is strengthening against EUR, GBP, and USD.

Most experts are confident that the positive dynamics are developing due to the government’s foreign exchange interventions undertaken to stabilize the yen exchange rate. As before, Japan’s top currency diplomat, Masato Kanda, refused to comment on the situation to reporters. Experts believe that the effect of the measures taken will be limited, as was the in similar cases earlier, and the quotes will resume their decline soon.

Australia

AUD is strengthening against USD, EUR, and GBP but weakening against JPY.

On Tuesday, March data on mortgage lending volumes is due: according to forecasts, the figure will adjust from 0.4% to 0.3%, and for the private sector – from 0.4% to 0.5%. In general, the positive dynamics of values remain quite poor. In addition, retail sales may slow from 0.3% to 0.2%, which will put pressure on the national currency.

Oil

Oil prices are down slightly.

The asset is under pressure as the negotiations between Israel and the Palestinian Hamas movement renewed, taking place in Cairo under US mediation. The parties are discussing the release of some Israeli hostages in exchange for Israel’s refusal to attack the city of Rafah with more than a million Palestinian refugees. The conclusion of a truce will significantly ease the tension in the Middle East region, reducing the risk of interruptions in oil supply to the market. In addition, negative dynamics are developing against investors’ anticipation of the US Fed meeting: officials may hint at postponing interest rate cuts until the fall or winter, and during this period, the American dollar will be supported against alternative assets, including raw materials.