Market Overview
- The forex market experienced significant movements with the USD/CAD pair rising to around 1.4105 after President Trump announced a 90-day delay on reciprocal tariffs.
- The EUR/USD struggled to gain momentum despite a global risk appetite recovery following the US decision to delay tariffs.
- The GBP/USD rose above 1.2800 as market sentiment improved due to the Trump administration delaying tariffs once again.
- Gold prices rose driven by safe-haven demand amid US-China trade tensions.
- The Dow Jones surged 7.8% after the Trump administration delayed "reciprocal" tariffs, reducing them to a flat 10% for 90 days.
Fundamental Analysis
- Major economic events included the announcement of a 90-day delay on reciprocal tariffs by US President Trump and the Federal Reserve downplaying the immediate impact of a potential trade war on the US economy.
- Key macroeconomic trends affecting forex markets include inflation data, consumer sentiment data, and trade balance figures from major economies.
- Central bank statements from the Federal Reserve and Bank of Canada also played significant roles in market movements.
Technical Analysis
- EUR/USD's near-term technical support level is around 1.0900, but resistance remains strong between 1.1100 and 1.1000.
- GBP/USD rose by 0.3% with rate markets now pricing in 75 bps of interest rate cuts from the Fed for the rest of the year.
- Gold has an inverse correlation with the US Dollar and US Treasuries, making it a popular choice for diversification during market volatility.
- AUD/JPY pair surged to near the 91.00 zone after a strong intraday rally, despite key indicators suggesting a bearish technical backdrop.
Conclusion
- The forex market outlook remains uncertain due to ongoing trade tensions and varied economic indicators across major economies.
- Potential trading opportunities may arise from the fluctuating price action of major currency pairs and gold, as well as shifts in investor sentiment and risk factors.
