Market Overview
- The global forex market experienced significant movements due to concerns over tariff and trade wars, which China's Finance Ministry believes are impacting economic growth momentum.
- The Australian Dollar (AUD) traded slightly lower at 0.6400, influenced by factors such as interest rates, the health of the Chinese economy, Iron Ore prices, and Trade Balance.
- The EUR/USD pair weakened to around 1.1380 due to investor concerns about US-China trade tensions and expectations of an ECB rate cut.
- The USD/JPY pair was up 0.15% at 142.83 following a rise in Tokyo's Consumer Price Index.
- The US Dollar Index traded slightly higher at 99.30 after Federal Reserve Bank of Minneapolis President Neel Kashkari expressed concern about potential layoffs due to business uncertainty.
- Silver prices remained stable, supported by a weaker US Dollar and lower bond yields.
Fundamental Analysis
- Major economic events included China's Finance Ministry urging international cooperation to enhance the global economic system, and the Reserve Bank of Australia's decisions on interest rates affecting the AUD.
- The ECB is expected to cut interest rates in June, undermining the Euro against the USD.
- The Tokyo Consumer Price Index for April showed a 3.5% year-on-year increase, affecting the value of the Japanese Yen.
- Neel Kashkari expressed concern about potential layoffs due to uncertainty in the business environment.
Technical Analysis
- EUR/USD showed resistance levels at 1.1375 and 1.1390, with support around 1.1320 and 1.1195.
- GBP/USD gained momentum with resistance ahead, supported by technical indicators.
- USD/JPY showed a bearish outlook with resistance at 143.05 and support at 142.45.
- Gold prices rose by more than 1.50% on Thursday, breaking a two-day losing streak due to renewed concerns about the US-China trade war.
Conclusion
- The market outlook remains uncertain due to ongoing tariff and trade wars, with potential trading opportunities in major currency pairs and Gold.
- Investors are closely monitoring developments in the global economy and trade negotiations.
- The Federal Reserve's monetary policy decisions and the performance of the Chinese economy will continue to influence forex markets.
- Traders are advised to keep a close eye on price action for EUR/USD, GBP/USD, USD/JPY, and Gold.
