Market News & Analysis
Forex Report: EURUSD Hits 2-Week High as ECB Holds On Rates
Ming Lam May 1, 2020 9:32 AM
EUR/USD advanced 0.6% to a two-week high of 1.0941. The European Central Bank kept its key interest rates unchanged as expected.
Further, the central bank reduced the interest rate on TLTRO (longer-term refinancing operations, loans that ECB provides to European banks) to 50 basis points below the average interest rate on the Eurosystem's main refinancing operations.
Meanwhile, official data showed that the eurozone's economy contracted 3.8% on year in the first quarter (-3.4% expected), while jobless rate edged up to 7.4% in March (7.8% expected) from 7.3% in February. Also, CPI grew 0.4% on year in April (+0.1% expected).
Source: GAIN Capital, TradingView
GBP/USD climbed 0.9% to 1.2574.
USD/JPY gained 0.5% to 107.24, snapping a six-day decline.
USD/CAD rebounded 0.6% to 1.3966. Government data showed that Canada's GDP was flat on month in February (+0.2% expected).
Other commodity-linked currencies also retreated against the greenback. AUD/USD sank 1.1% to 0.6484 and NZD/USD dipped 0.5% to 0.6105.
China's official Manufacturing PMI fell to 50.8 in April (51.0 expected), while non-manufacturing PMI climbed to 53.2 (52.5 estimated).
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