The dollar is coming under heavy pressure as we move towards the end of the week. There are potentially a couple of key technical breaks across the board as highlighted here and that may lend itself to a further downside leg for the greenback in the near-term.
The market thinking now is that there will only be one more 25 bps rate hike in May, before the Fed pauses in June and then considers rate cuts in the subsequent months. That is evident by the pricing as outlined here yesterday. That view is essentially what is weighing on the dollar and it might take some pushback by Fed officials to arrest that train of thought.
For today though, US retail sales will also be one to watch but keep an eye out on the charts as the dollar is facing a key test to try and stay afloat towards the end of the week.
0600 GMT - Germany March wholesale price index
0630 GMT - Switzerland March producer and import prices
0645 GMT - France March final CPI figures
0700 GMT - Spain March final CPI figures
That's all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.
