US Dollar Slightly Supported by Boston Fed President's Statement

Market Reviews

The Japanese yen continues to be the weakest one, as selloff intensifies, while the Australian dollar continues to be the strongest. The US dollar was under some pressure earlier today but is supported by Fed Rosengren’s comments.

Consumer prices in the Eurozone's largest economy rose as expected last month, on the back of a slightly higher trend for core inflation. Germany's Consumer Price Index rose by 0.4% month-on-month in March, pushing the year-on-year rate of gains from 1.4% to 1.6%. That was in-line with both economists' forecasts and the preliminary estimate from government statisticians. In comparison to a year ago, the biggest gains were seen in the prices for Alcoholic Beverages and Food, at up by 3.7% and 2.9% year-on-year, respectively.

The Eurozone's trade surplus widened in February as a sharp drop in imports chimed with other recent signs of weakening domestic demand. The European Union's statistics agency said that when adjusted for seasonal variations, exports of goods from the currency area fell 2.3% from January, the second straight month of decline. However, imports of goods fell more rapidly by 3.1%, leaving the Eurozone with a surplus of 21.0 billion euros ($25.9 billion), up from EUR20.2 billion in January. Without seasonal adjustment, the surplus widened to EUR18.9 billion from EUR16.1 billion a year earlier.

Eric Rosengren (Boston Fed President) stated, the Federal Reserve will probably need to raise interest rates at least three more times this year in the face of a robust US economy, even while possible trade disruptions pose risks. The politician also said about strong US job growth, a small rise in inflation, and above-average economic growth. But he also flagged recent trade tariffs and threats of more, as a short-term risk, and argued that fiscal stimulus could pose longer-term problems.

Standard&Poor's Global Rating agency confirmed the long-term credit rating of Japan, having revised with a rating upgrade to "positive" from "stable". The agency noted that strengthening the economy creates a springboard for improving the country's fiscal position.