Here’s a quick roundup for Thursday, April 23rd.
The US dollar (USD) is holding steady at around 98.65 as European trading approaches, largely due to ongoing geopolitical tensions between the US and Iran.
In the latter part of Thursday, all eyes will be on the S&P Global US Purchasing Managers’ Index (PMI). There’s some expectation that corporate activity will show slight stabilization after a weak performance in March. Specifically, the manufacturing PMI for April is projected to improve marginally from 52.3 to 52.5, while the services PMI is anticipated to rise to 50.0 from a previous 49.8.
The US dollar is notably performing well against major currencies today, particularly the New Zealand dollar.
The current USD/EUR exchange rate is approximately 1.1700, maintaining its value after fluctuating amidst Middle Eastern tensions.
The USD/JPY pair is seeing some upward movement, recently reaching a multi-decade high of 159.60. Japanese officials have issued heightened warnings and are ready to take decisive measures if the currency nears the significant 160.00 threshold.
As for the Australian dollar, it dropped to 0.7150 earlier in the European morning. Meanwhile, Australia’s preliminary S&P Global Manufacturing PMI ticked up to 51.0 in April, up from 49.8.
In the gold market (XAU/USD), prices fell nearly 0.40% amid ongoing tensions and the closure of the Strait of Hormuz, which is causing energy costs to rise and stoking inflation worries, complicating the outlook for interest rate cuts.
The US is reportedly extending its ceasefire with Iran following a request from Pakistan, while President Trump is waiting for a proposal regarding unification from Iran. Despite this, tensions remain as the Iranian government continues to control the Strait of Hormuz, impeding trade and targeting ships.
President Trump noted that there is “no time pressure” for ceasefire negotiations, stressing there is “no deadline” for ending the conflict. On the Iranian side, the top negotiator has criticized Israel’s actions, claiming they have made reopening the Strait of Hormuz “impossible.”
