Market Overview
- The forex market witnessed significant movements, with major currency pairs and Gold demonstrating notable volatility.
- Investor sentiment was influenced by geopolitical tensions, particularly Iran's pursuit of a nuclear weapons program, which has raised risk factors in the market.
- The "risk-on" and "risk-off" periods have been observed in the financial markets, impacting various currencies and commodities differently.
- The US Dollar Index rose following a US federal court's decision to block President Trump's tariffs, indicating a preference for safer investments during "risk-off" periods.
- Gold prices are currently trading lower at $3,263 amid the ongoing geopolitical tensions.
Fundamental Analysis
- Major economic events included the US-China trade war reigniting due to President Trump's decision to pause sales of critical US technologies to China.
- The Federal Reserve's cautious stance on tariffs and inflation was revealed in the FOMC Minutes, impacting several currency pairs including USD/CAD and GBP/USD.
- The Bank of Canada is expected to adjust its policy decision based on Canada's Q1 GDP data.
- RBNZ officials expressed concerns about tariffs and medium-term productivity, affecting the NZD/USD pair.
Technical Analysis
- EUR/USD is facing downward pressure due to a strengthening US Dollar.
- GBP/USD remains in a bearish downturn but is still in bull territory with daily candlesticks above the 50-day EMA.
- USD/JPY reached multi-day highs while USD/CAD rose to around 1.3835 in the early Asian session.
- Gold prices consolidated within a range, with a pullback challenging $3,250.
Conclusion
- The market outlook remains cautious due to ongoing geopolitical tensions and economic uncertainties.
- Potential trading opportunities may arise from key macroeconomic trends affecting forex markets and price action for major currency pairs and Gold.
