What’s up, traders.

The Dollar index’s (DXY) bounce from the 13-day low of 99.45 reached during Tuesday’s American trading hours ran out of steam near 99.90 early Wednesday, because both the S&P 500 futures and Asian stocks climbed, and as a result, the greenback is losing its haven demand.

It’s likely to be a busy day as we have major events like US GDP and FOMC meetings, which may drive some price action in the USD and related pairs. Odds of GDP release are pretty weak, and this may keep pressure on the USD ahead of release. So we may see a bullish trend in GOLD, and other forex pairs today.

Watchlist – Top Economic Events Today

EUR – German Prelim CPI m/m
Germany is one of the biggest trading hubs of the Eurozone, and its inflation data is considered highly important for the determination of the Euro trend.

Overall, the inflation data remains very low in the Eurozone’s number one economy. CPI released at just 0.1% in the final figures for March, confirming the initial release. CPI is expected to dip to 0.0% in the upcoming release.

USD: Advance GDP q/q – 12:30 GMT
The gross domestic product is the broadest measure of economic activity and the primary gauge of the economy’s health. It shows an annualized change in the inflation-adjusted value of all goods and services produced by the economy.

The Bureau of Economic Analysis is due to release the US GDP data at 12:30 GMT. The advanced GDP is expected to plunge from 2.1% to -3.9%, which is dramatically lower than in previous years. So, if the actual figure falls to -3.9%, it gives the Federal Reserve a solid reason to consider further rate cuts this year, and the dollar may trade with a bearish bias on the day.

USD: FOMC Rate Decision – 18:00 GMT

The US Fed has soothed markets with its exceptional interventions despite an extended sharp decline in the economy and employment probabilities. Its emergency actions have decreased the risk of market breakdowns, renewed liquidity, and opened up critical sections of the corporate bond market to necessary new issuance by both investment-grade and high-yield companies.

The Federal Reserve is anticipated to support the current benchmark rate. Traders will be combing through the rate statement for hints as to future transits that the Fed may make for stimulating the economy.

That’s all for now, but stay tuned to our economic calendar for the live market updates and forex trading signals.

Good luck!