Investors should be on the lookout for price movements in the U.S. dollar during the market close as it continues to weaken

Investors should be on the lookout for price movements in the U.S. dollar during the market close as it continues to weaken

18.04.2025

In yesterday’s U.S. currency trading, the U.S. dollar fell against the pound after the April Philadelphia Fed Business Outlook Index, released yesterday, dropped to -26.4 from 12.5 the previous month, falling well short of market expectations of +6.7.The GBP/USD pair rose from 1.3202 to 1.3274. The price extended from the -2σ to the +3σ levels on the hourly Bollinger Bands. Furthermore, it has continued to hit new highs during today’s Asian trading session, with the US dollar’s weakness becoming increasingly apparent.

European currencies fell against the U.S. dollar after the European Central Bank (ECB) cut its policy rate by 0.25 percentage points from 2.65% to 2.40% at its monetary policy meeting announced yesterday.The EUR/USD pair fell from 1.1408 to 1.1335, moving across the 20-period moving average on the hourly chart. Although the pair has not reached a new high on the 4-hour chart, it has also not reached a new low, indicating that it is entering a triangular consolidation pattern.

Today’s economic calendar includes the release of Japan’s Consumer Price Index at 8:30 a.m. and remarks by the President of the Federal Reserve Bank of San Francisco at midnight. However, since major markets in Europe and the U.S. are closed today for Good Friday, no other significant economic indicators are scheduled. We should remain vigilant regarding price movements in the weakening U.S. dollar during the market closure.