Market Overview
- The market witnessed a range of movements, with major currency pairs and Gold showing varied trends.
- Federal Reserve Chairman Jerome Powell emphasized the importance of the Dollar as the global reserve currency, and its role in providing stability. He also expressed caution regarding decisions on inflation and tariffs.
- Federal Reserve Bank of Boston President Susan Collins stated that the US economy is solid and the monetary policy is well-positioned. She also warned that tariffs could increase inflation, lower growth, and impact hiring.
- The USD/CAD pair is rising as markets await US New Home Sales data and Fed Chair Powell's testimony for insights into interest rate expectations.
- Gold is trading in a narrow range as markets react to disappointing US housing data and comments from Fed Chair Powell.
- The Indian Rupee weakened against the US Dollar, despite easing geopolitical tensions and stable oil prices.
- Silver (XAG/USD) is trading flat-to-lower near $35.75, down 0.46% on Wednesday, staying within Tuesday's range.
Fundamental Analysis
- Federal Reserve Chairman Jerome Powell stated that federal financial policy and debt do not impact month-to-month policy decisions.
- Federal Reserve Bank of Boston President Susan Collins emphasized the need for patience and care, supporting the Fed's decision to hold rates steady.
- The USD/CAD pair is consolidating near the 1.3740 level, facing resistance at the 50-day SMA and November 2024 low.
- Gold is currently above $3,300, with the RSI indicator showing indecision among traders.
Technical Analysis
- EUR/USD: Immediate resistance at 1.1630 with a bullish flag formation targeting the 1.1700 area.
- GBP/USD: Remains strong near 1.3650 following Israel-Iran ceasefire announcement.
- USD/JPY: Down 0.5% against the US Dollar and performing poorly compared to other G10 currencies.
- Gold (XAU/USD): Currently above $3,300, with the RSI indicator showing indecision among traders.
Conclusion
- The market is witnessing a mix of movements with major currency pairs and Gold showing varied trends.
- Key economic events and data releases are influencing the forex markets, with a particular focus on inflation and tariff impacts.
- Technical analysis suggests potential shifts in momentum for several currency pairs and Gold.
- Investors should closely monitor upcoming economic indicators and central bank statements for potential trading opportunities.
