FOREX TODAY: US DOLLAR RISES AHEAD OF FED TALK AND HOUSING FIGURES

WHAT YOU NEED KNOW ON TUESDAY, APRIL 16 IS AS FOLLOWS:

The US Dollar (USD) outperformed its main competitors on Monday, and it is still strengthening early on Tuesday. The US Building Permits and Housing Starts data for March will be available on the docket. Later in the American session, a number of Fed members, including Chairman Jerome Powell, will be giving talks. The Federal Reserve (Fed) will also release numbers on industrial production.

The USD struggled to find buyers in the first part of the day on Monday due to lowering geopolitical concerns, but the currency gained positive momentum following positive retail sales figures. The USD Index, meanwhile, ended the day in positive territory for the fourth day in a row. The index is trading at its highest level since early November as it advances toward 106.50 early on Tuesday. In the meantime, after increasing by about 2% on Monday, the yield on the benchmark 10-year US Treasury paper remains above 4.6%.

THE US DOLLAR'S VALUE DURING THE PAST WEEK

The US Dollar (USD) percentage movement versus a list of major currencies over the last seven days is displayed in the table below. When compared to the Australian dollar, the US dollar was the strongest.

The major currencies' percentage movements relative to one another are displayed on the heat map. The quotation currency is selected from the top row, and the base currency is selected from the left column. For example, the percentage change shown in the box will indicate EUR (base)/JPY (quote) if you select the Euro from the left column and proceed along the horizontal line to the Japanese Yen.

According to reports, during a phone call, Iranian Foreign Minister Hossein Amir-Abdollahian informed his Chinese colleague that Iran is prepared to “exercise restraint and has no intention of further escalating the situation.” US stock index futures are trading slightly lower early on Tuesday, following the significant drop in Wall Street's primary indexes on Monday.

China released data during Asian trade hours indicating that the first quarter's real Gross Domestic Product (GDP) increased at an annual pace of 5.3%. This reading above the 5% market projection and follows the 5.2% rise noted in the fourth quarter of 2023. On the down side, China's retail sales increased 3.1% annually in March, below economists' forecast of a 4.5% growth.

Following the mixed Chinese data, there was bearish pressure on the AUD/USD exchange rate. It was last seen trading at its lowest level in five months, little above 0.6400.

Yoshimasa Hayashi, the chief cabinet secretary of Japan, stated on Tuesday that stable currency movements that reflect fundamentals are crucial. Hayashi underlined that they are ready to take any necessary action but declined to comment on a potential intervention. The USD/JPY increased by 0.6% on Monday, hitting a peak not seen in more than 30 years before entering a consolidation phase below 154.50.

Early on Tuesday, the UK's Office for National Statistics revealed that the ILO Unemployment Rate increased from 4% to 4.2% in the three months leading up to February. Additional report details revealed that, on an annual basis, the pay inflation, as determined by the shift in the Average Earnings Excluding Bonus, decreased slightly to 6% from 6.1%. Following the release of the data, the GBP/USD pair weakened, reaching 1.2400, its lowest level since mid-November.

In the early American session on Monday, gold fell toward $2,320 under pressure from rising US yields and the widespread strength of the USD. However, later in the day, the risk-averse market environment contributed to the upward momentum of XAU/USD. Following a gain of almost 1.5% on Monday, Gold appears to have leveled off at roughly $2,380 early on Tuesday.

The attempt by EUR/USD to recover was short-lived on Monday, as the pair ended the day lower for the fifth day in a row. Tuesday's European morning sees EUR/USD maintaining a defensive attitude and trading close to 1.0600.

Statistics Canada will release the March Consumer Price Index statistics later in the day. The eurodollar/canadian dollar remains higher above 1.3800 in the morning in Europe.