Important developments today:

12:30 UTC – US: change in retail sales for March.

A mixed backdrop is forming for today. On the one hand, low US inflation is forcing traders to get rid of US currency as investors realise that the Fed will end the monetary tightening cycle. The USDX basket index is approaching a one-year low and a fall of another 1% from current levels is imminent.

On the other hand, investors have started buying stocks in the US stock market, which is good for this currency pair, as it correlates with the SP500 index. The US stock market has good chances to end April with growth, even with a weak corporate reporting season, as the end of the Fed’s rate hike cycle will outweigh the negative of the corporate statistics.

Recommendations: Flat 131.70 – 132.70.