Market Overview
- The forex market experienced significant movements with major currency pairs and Gold.
- The Bank of Japan's policy of ultra-loose monetary measures has influenced the depreciation of the Yen against other currencies. However, in 2024, it began unwinding its ultra-loose policy due to rising inflation and salaries in Japan.
- The Federal Reserve Bank of New York President John Williams emphasized the importance of avoiding highly persistent inflation and highlighted the potential long-lasting effects of misperceptions about 'r star'.
- The Reserve Bank of New Zealand is expected to lower the Official Cash Rate by 25 basis points to 3.25% in May, which could increase volatility in the New Zealand Dollar.
- WTI oil price is around $60.90 in Asian trading hours, influenced by US-Iran nuclear talks progress and potential OPEC+ output increase.
- GBP/USD ended a six-day winning streak on Tuesday, dropping from the 1.3600 level due to US Dollar strength.
- Gold prices dropped below $3,300 as Trump's decision to delay EU tariffs boosted market sentiment and the US Dollar.
Fundamental Analysis
- Major economic events and data releases have played a significant role in shaping forex markets.
- The Bank of Japan's decisions have significantly impacted the value of the Yen, with USD/JPY trading 0.27% lower on the day at 143.93.
- Federal Reserve Bank of New York President John Williams' statements on inflation expectations have influenced the US Dollar Index, which traded lower at 99.50.
- The Reserve Bank of New Zealand's upcoming decision on Official Cash Rate is likely to affect NZD/USD pair.
- WTI oil price is being influenced by US-Iran nuclear talks progress and potential OPEC+ output increase.
Technical Analysis
- EUR/USD faced selling pressure above 1.1400 as the US Dollar strengthened on positive data.
- GBP/USD is trading slightly lower below 1.3550, correcting from a recent peak near 1.3600.
- USD/JPY experienced a significant intraday rebound from a one-month low due to a decrease in JGB yields and optimism about the EU tariff delay.
- Gold price is consolidating below $3,350, with buying pressure building up.
Conclusion
- The forex market is experiencing significant movements due to various economic events and data releases.
- Major currency pairs such as EUR/USD, GBP/USD, and USD/JPY are showing varied trends based on investor sentiment, economic themes, and risk factors.
- Gold prices have dropped below $3,300 due to improved market sentiment and a stronger US Dollar.
- Traders should closely monitor these trends for potential trading opportunities.
