Daily Report: Investors' focus on Rate Decisions by ECB and Bank of Japan
Uptick in Yields Boost Dollar Higher, Is Structural Shift in Order?
FXPrimus has summarized important market indicators of the day.
Today’s Important Indicators
Dollar traded higher against majors for another session following the recent up-tilt in US Yields.
A structural market change may be coming sooner than anticipated.
While demand for Dollars rose Euro, Pound, Gold and Yen moved lower against the counter-currency as the calendar had no significant indicators for traders to look into either, apart EIA’s report.
Draghi likely to be cautious on QE remarks.
Today’s Forecast for Important Trading Indicators
BTC/USD – Bitcoin falls as investors looking at taking profits before breaching the $10K handle. Bitcoin deteriorated on profit taking in the Wednesday session after hitting a 7-week high just below 10K. With a cycle end likely to complete a tad lower, markets expect a further decline to $8.4K-$8K, unless if the 38.2% Fibo retracement at $8.6K acted as the immediate support of the bullish move.
EUR/USD – European currency breaks 1.22 ahead of ECB and Draghi, Dollar stronger day in day out. Euro fell yesterday confirming week-long bearish intensions despite no news on the economic calendar as Dollar appeared to have started a new structural shift following the recent uptick in US Yields. Pair in critical zone at bottom edge of range as the triangle formation breakout alarmed bulls. Investors eye Draghi’ remarks on end-of-QE program today at 12:30 GMT.
GBP/USD – Sterling slips back to Fibonacci extension as retracement short-lived, US Yields rise. The British Pound printed a 50-pip loss in the Wednesday session erasing the small gains seen on Tuesday while no indicators were due. Dollar on the other side rose as the 10Yr Treasury Bonds breached the 3.015% level, a 4Yr high, taking Pound back to its recent low of 1.3918, where the bottom of a tight range is formed.
USD/JPY – Yen declines to 10-week low as US Dollar soars on US Yields, Japanese inflation eyed. Dollar broke the 109 hurdle on Wednesday as Yen continued to lose ground versus its rival on US Bonds. The pair climbed to a daily high of 109.50 taking out the 161.8% extension from its April 2nd retracement. Market participants expect the Japanese inflation figures today but are mainly focused on BoJ’s policy statement.
USOIL – Oil dips intraday as EIA disappoints, bulls recover losses following double bottom at 61.8%. Crude Oil prices dipped following EIA as agency reported a build of 2.2 million barrels for the week ending April 20. With gasoline stocks also piling up it was imminent that bears would take over control, at least momentarily. After a rest of the $67/b and a double bottom formation WTI moved higher, ending the session in the greens, however, price remains below the ascending trendline.
XAU/USD – Gold depreciates as risk appetite shifts following US-Yields rise to 4Yr high. Gold took a beating yesterday moving $6 per ounce lower but held firm above $1322/oz remaining within the trading range between the said level and $1350. With risk appetite likely to increase Gold may be under pressure as markets expect the US GDP figures tomorrow too, an event that may be a catalyst to Dollar’s directional activity.
US Indexes – DJ rose by 0.25%, S&P 500 saw an 0.18% move to the upside.
European Indexes – UK 100 deteriorated by 0.10%, DE 30 closed unchanged.
Asian Indexes – ASX 200 declined by 0.11%, Nikkei 225 surged 0.47% higher, Hang Seng trades 1.01% lower.
US Equities – Twitter plunged by 2.36%, Exxon Mobil appreciated by 1.47 %