Best Trade Ideas for April
I know we've had quite an amazing run these past few month, with over 78% accuracy in our trade ideas and sentiments, and thousands of pips in profits monthly...
US Dollar gains before critical NFP number
Information is not investment advice
Ichimoku Kinko Hyo
GBP/JPY: The pair is trading below the cloud. A downward pressure would lead the pair to exit further the cloud, confirming a bearish outlook.
Fibonacci Levels
XAG/USD: Silver continuous to stand above 38.2% retracement area. Bearish pressure gains momentum.
EU Market View
Asian equity markets traded cautiously following the tech-led declines in the US and with sentiment constrained by US-China tensions. Asian stocks followed Wall Street lower on Friday as signs of a strengthening U.S. recovery boosted bets for higher inflation and an earlier tapering of Federal Reserve stimulus.
U.S. Treasury yields jumped, lifting the dollar and hurting tech shares, after better-than-expected employment data overnight raised expectations for a strong reading for nonfarm payrolls on Friday, while a measure of service sector activity climbed to a record high. While Fed officials have consistently said they expect current inflationary pressures to be transitory and for ultra-easy monetary policy to stay in place for some time, they are also increasingly touting the need to at least start talking about a tapering of stimulus. New York Fed President John Williams said on Thursday that the U.S. economy is still far from the point at which the central bank might begin to withdraw its support, although it makes sense for officials to begin discussing their options for adjusting policy. Fed Chair Jerome Powell speaks on central banks and climate change at a conference later in the global day. Investors are carefully parsing the economic data to gauge if inflation could prove sticky enough to force the Fed's hand on tapering. Last month, much-weaker-than-expected nonfarm payrolls numbers knocked back those expectations, weakening Treasury yields and the dollar.This month, economists forecast private payrolls likely increased by 600,000 jobs in May, after rising only 218,000 in April.
The dollar climbed in early European trade Friday, reaching multi-week highs after a spate of strong economic data ahead of the monthly payrolls release raised the possibility of early Federal Reserve tightening. The dollar has been under pressure for much of 2021 as traders have reacted to ultra-easy Fed policies, and the suggestions that these would stay in place for some time. However, this narrative is starting to change as the U.S. economic rebound gains in strength, throwing up the possibility of it driving policy tightening.
Looking ahead, highlights include EZ and UK Construction PMIs, US and Canadian Jobs Reports, US Factory Orders, Fed’s Powell, ECB’s Lagarde, Villeroy, de Cos, PBoC’s Yi Gang, BoJ’s Kuroda
EU Key Point
- Germany reports 3,165 new coronavirus cases, 86 deaths in latest update today.
- Gold is back to unchanged on the session after its early drop.
- US President Biden will speak on the May NFP Friday at 1415 GMT.
- More Australian analysts change their RBA forecasts, ANZ say the Bank to move to 'flexible' QE.
- Chinese media cites analysts, says expectations for yuan appreciation have abated.
- US authorities investigations of ransomware hacks similar priority as terrorism.
- USDCHF retraces back into swing area on the hourly chart.
- Fed Williams: The time is not now to take any action.
Similar
CAD Might Weaken As Oil Market Plunges
Futures for Canada's main stock index rose on Monday, following positive global markets and gains in crude oil prices. First Citizens BancShares Inc's announcement of purchasing the loans and deposits of failed Silicon Valley Bank also boosted investor confidence in the global financial system...
Bitcoin & Gold - Safe Haven Amid Bank Crisis
Investor confidence in the global financial system has been shaken by the collapse of Silicon Valley Bank and Credit Suisse. As a result, many are turning to bearer assets, such as gold and bitcoin, to store value outside of the system without...
Popular
What Will Happen with the Euro? An Economic Perspective.
eurusd-is-falling-what-to-expect-from-the-future-price-movement
Will Australia's "Rampant Inflation" Prevail in May?
Greetings, fellow forex traders! Exciting news for those with an eye on the Australian market - the upcoming interest rate decision could be good news for Aussies looking to refinance or take out new loans. The Mortgage and Finance Association Australia CEO, Anja Pannek, has...
How Will BoJ Meeting Affect the Yen
Hold onto your hats, folks! The Japanese yen took a nosedive after the Bank of Japan (BOJ) left its ultra-loose policy settings unchanged, including its closely watched yield curve control (YCC) policy. But wait, there's more! The BOJ also removed its forward guidance, which had previously pledged to keep interest rates at current or lower levels. So, what's the scoop? Market expectations had been subdued going into the meeting, but some were still hoping for tweaks to the forward guidance to prepare for an eventual exit from the bank's massive stimulus
Choose your payment system
