January 28, 2023

Forex Market is thin amid the Easter holiday

LQDFX Forex news Blog: Forex Market is thin amid the Easter holiday

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The dollar steadied amid the Easter holiday against a basket of currencies on Friday after hitting a 2-1/2-week high overnight. Data pointed to a sturdy U.S. economy.

The euro was dented by weak manufacturing activity in Europe.

Many financial markets were closed for the Good Friday Easter holiday. Currency markets remain open but volume is expected to be light.

The dollar index rose to as high as 97.485 overnight, its highest level since April 2. It last traded at 97.392 on Friday, down 0.1% on the day.

U.S. retail sales increased by the most in 1-1/2-years in March as households boosted purchases of motor vehicles and a range of other goods. The latest indicates that economic growth picked up in the first quarter after a false start. Other data showed that the number of Americans filing applications for unemployment benefits fell to more than a 49-1/2-year low last week.

The picture was less bullish in the euro zone as data on Thursday showed that activity in Germany’s manufacturing sector shrank for a fourth straight month in April.

The euro fell against the dollar to as low as 1.1226, its lowest level in 1-1/2 weeks, after the worse-than-expected data from the Europe’s largest economy.

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Forex – Forex Market is thin amid the Easter holiday

Many financial markets were closed for the Good Friday Easter holiday. Currency markets remain open, but volume is expected to be light.

The release of Special Counsel Robert Mueller’s report on Russia’s role in the 2016 U.S. election had minor impact on markets.

The single currency was last up 0.1% against the U.S. dollar at $1.1242, up 0.1 percent on the day.

Similar to every other major pair, the GBP/USD is moving sideways in a tight range on Friday as market participants enjoy the long Easter weekend. The pair was down 2 pips at 1.2998.

In contrast, the weak European data pushed the yen higher to its one-week high of 111.765 yen at one point on late Thursday. The yen last stood at 111.935 yen to the dollar, within the recent narrow range.

WTI (oil futures on NYMEX) settled the Good Friday trading week largely unchanged near the 64 handle. However, it remained within close proximity of the 2019 tops of $ 64.79.

PLEASE NOTE The information above is not investment advice.

Sources: Reuters, Investing, CNN money