The U.S Dollar faced heavy selling pressure following soft inflation data in the US.
The March CPI came out below expectations at 0.1%. Stocks and Treasuries rose after the release, amid optimism that the Fed is likely to stop raising interest rates.
Moreover, the Bank of Canada kept the overnight interest rate unchanged at 4.5% and the central bank said that it expects “inflation to fall quickly to around 3% in the middle of this year and then decline more gradually to the 2% target by the end of 2024.”
Later today, US initial jobless claims are due to rise from 228K to 232K, while the UK GDP is expected to have declined in February from 0.3% to 0.1%.
Below, we will be analyzing the latest price action developments in the major currency pairs alongside gold.