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Dollar Bears Hit Back: USD Falls Below 90.00 Ahead Of CPI, FOMC Minutes

By Kurt Osterberg · On April 9, 2018

Talking Points:

Last week ended on a sour note following the disappointing NFP release on Friday. US Stocks closed the week by selling into the close, reversing a large portion of last week’s gains; and we’ve seen a bounce developing in equity futures as we approach this morning’s US open. With corporate earnings kicking into gear later this week, the focus will be on equities as expectations are very high for Q1 performance numbers.

The US Dollar closed Q1 and opened Q2 on an optimistic note as gains pushed DXY back-above the 90.00 level. But that strength could not last, and after the Friday reversal around NFP, bears have remained in control to push DXY below the 90.00 level. On Friday, we looked at a couple of setups around the US Dollar that remain open as we move into this week.

CPI, FOMC MINUTES ON THE DOCKET FOLLOWED BY CORPORATE EARNINGS

This week’s economic calendar begins to shift the focus towards corporate earnings out of the United States. On Thursday, both Delta and Blackrock announce Q1 performance numbers, and this is followed by the Friday release of the same from Citigroup, JP Morgan and Wells Fargo. Earnings season runs through the rest of April, and many of the big tech names are reporting later in the month. Netflix reports results next Monday, April 16th, Facebook reports on April 25th, Google and Amazon both report on April 26th, and Apple announces on May 1st.

But before we get deeper into earnings, we have a couple of key macro drivers to work with on this week’s economic calendar, as Wednesday brings the release of March inflation numbers out of the United States along with meeting minutes from the Fed’s March rate hike later in the day. The next morning brings ECB meeting minutes from the March rate decision, but expectations here are relatively low for any ‘new’ themes or items of interest.

DAILYFX ECONOMIC CALENDAR: HIGH-IMPACT EVENTS FOR WEEK OF APRIL 9, 2018