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The US dollar falls after the release of Chinese trade data and positive credit growth

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USD - United States Dollar

The global equity markets commenced in a positive mood, pushing the US dollar index lower by 0.36 percent (the Greenback is considered a safe-haven). One of the main reasons for the decrease is the earnings season in the US, which started with JPMorgan Chase & Co and Wells Fargo reporting their first quarters.

According to Bloomberg, Federal Reserve Chair Jerome Powell said that the Fed will not bow to political pressure in any way in remarks to Democratic lawmakers. At the same time, the potential nominee for the Federal Reserve board, Herman Cain, now may not even make it to a congressional hearing after four Republican senators said they would not back the pick because Trump should choose someone less partisan. Trump’s other proposed nominee, Stephen Moore, said he plans to question the idea that growth spurs inflation should he obtain a place on the board.

The University of Michigan consumer sentiment came in at 96.9 a few minutes ago, while the expected number was 98.1. The US dollar is erasing some early losses after the positive momentum of the global equity markets boosted riskier currencies such as the Aussie and Canadian dollar.

Key Movers

Very positive economic news came from China, including credit growth and a trade surplus with the US, which increased to US$ 20.5 billion in March. Trade data released by China in the overnight session showed that exports rose 14.2 percent from a year earlier in March against forecasts calling for a rise of 8.7 percent and after a sharp drop in February. The Chinese government's efforts to stimulate its economy were shown in aggregate financing data in March, which came in at 2.86 trillion Yuan (US$426 billion), more than 1 trillion Yuan above the estimates.

All the major currencies are gaining momentum against the US dollar. At the time of this writing, the US dollar is falling -0.6 percent versus the Euro, -0.5 versus the British Pound, -0.8 percent versus the Aussie dollar, and -0.5 percent versus the Canadian dollar. However, the US dollar is performing positively versus the Japanese Yen by 0.2 percent.

Expected Ranges

USD/CAD: 1.3299 - 1.3361 ▼

EUR/USD: 1.1290 - 1.1351 ▲

GBP/USD: 1.3070 - 1.3141 ▲

AUD/USD: 0.7161 - 0.7196 ▲

NZD/USD: 0.6753 - 0.6795 ▲