The FOMC was pleasingly optimistic for Dollar bulls, and the USD gained ground against its major counterparts including the Euro as the FOMC signalled it is comfortable with allowing inflation to run higher within the US economy, bedding down market concerns of excessive rate hikes throughout 2018, at least temporarily. The U.S. Commerce Department said on Wednesday that it would launch a national security investigation into car and truck imports under Section 232 of the Trade Expansion Act of 1962, a move that could lead to tariffs like those imposed on steel and aluminium in March. Adding to market jitters, Trump on Wednesday called for “a different structure” in any trade deal with China, fuelling uncertainty over the negotiations.
Thursday brings a new challenge for the US Dollar, as the Trump administration gears up to deploy hefty tariffs on foreign vehicle imports, delivering a blow to NAFTA renegotiations as the US government employs the already-familiar Section 232 of citing national security concerns as an impetus for trade tariffs.
German GDP figures will also be hitting today at 06:00 GMT, with headline quarter-on-quarter GDP for 2018’s Q1 expected at 0.3%, in-line with the previous figure. After that will be Monetary Policy Meeting Accounts from the European Central Bank (ECB) at 11:30 GMT, followed by Continuing Jobless Claims from the US at 12:30, expected to print at 1.754 million, a slight uptick from the previous reading of 1.707 million.