Market Overview
- The forex market experienced significant movements, with notable changes in major currency pairs and Gold.
- The USD/JPY pair rose by 0.22% following Japan's Economy Minister Ryosei Akazawa's announcement of a second meeting with the United States, aiming for a swift resolution beneficial to both nations.
- The NZD/USD pair rose to around 0.5935 after New Zealand's CPI inflation increased to 2.5% YoY in Q1, despite expectations of Fed rate cuts starting in June.
- The EUR/USD pair remained stable near 1.1400 as traders await news on potential trade agreements, while the ECB is expected to cut interest rates for the third time this year.
- Gold prices reached a record high for the third time in a week due to escalating trade tensions between the US and China.
Fundamental Analysis
- Major economic events included Japan's Economy Minister announcing plans for a second meeting with the US, emphasizing the desire for swift resolution and tariff removal on Japan.
- New Zealand's CPI inflation increased to 2.5% YoY in Q1, leading to an increase in NZD/USD pair.
- The US Census Bureau reported stronger consumer spending in March, with Retail Sales rising by 1.4%.
- Fed Chair Jerome Powell's comments suggest the Fed may resume rate cuts in June.
Technical Analysis
- EUR/USD remained stable near 1.1400, GBP/USD approached 1.3300, USD/JPY dropped to seven-month lows below 142.00, and Gold (XAU/USD) surged past $3,340 per troy ounce.
- The NZD/USD pair traded near the 0.5900 zone after rising for three consecutive sessions, indicating a steady bullish trend.
- The USD/JPY pair is trading around 143, facing pressure from trade tensions and falling Treasury yields.
- GBP/JPY is trading near the lower end of its daily range below 189, with all key moving averages indicating a bearish bias.
Conclusion
- The market outlook remains uncertain due to ongoing trade tensions and economic policy changes.
- Potential trading opportunities may arise from these developments, particularly in currency pairs such as EUR/USD, GBP/USD, and USD/JPY.
- Investors should closely monitor economic events, central bank statements, and technical price action for potential trading signals.
