Forex Today: Fed downs the dollar, lifts gold, all eyes now on US GDP

Here is what you need to know on Thursday, April 29:

Markets are cheering the Fed's dovish decision in which it pledged more support to the economy. The dollar remains on the back foot ahead of the first release of US growth figures. Cryptocurrencies are mixed and oil is on the rise. Jobless claims and pending home sales are also eyed.

The Federal Reserve left its interest rate unchanged, acknowledged the economic improvement and said that inflation increases are transitory. Tapering of bond-buying is not on the cards for now as “the economy has a long way to go” according to Jerome Powell, Chair of the Federal Reserve. He also stressed that millions are out of work and that bottlenecks in supply chains will be resolved.

The US dollar reacted with a downfall in response to prospects of ongoing dollar printing, with EUR/USD hitting the highest since March above 1.2120. German employment and inflation figures are eyed later in the day. GBP/USD has also advanced, shrugging off concerns about issues EU-UK disagreements related to Northern Ireland.

Gold also advanced from the lows and trades around $1,780, still below $1,800.

The first release of US Gross Domestic Product (GDP) figures for the first quarter stands out on Thursday. An increase of 6.5% annualized growth is on the cards. While America suffered from a severe coronavirus wave in January and a storm in February, the effect of vaccines and stimulus kicked in in March and boosted consumption.

US jobless claims are set to remain at relatively low levels after hitting 547,000 last week. Pending home sales are forecast to jump by 4.7% in March, showing the resilience of the housing sector.

Earnings season continues in full force, with Apple beating the Street with robust sales of its products.

Cryptocurrencies: Bitcoin continues hovering around $54,000 while Ethereum edges higher and changes hands above $2,700. Volatility may pick up ahead of the weekend.

WTI Crude Oil is benefiting from the risk-on mood and trades above $64. That comes despite an increase in US oil inventories.

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