Today's Economic News

Market Overview

The dollar saw a decline as Fed Chair Powell hinted that the Fed's next move might not involve a rate hike. Meanwhile, US Apr Core PPI m/m showed a 0.5% increase, surpassing expectations by 0.2%.

Powell emphasized the need for patience with current policies, citing the lack of inflation progress in Q1. He expressed skepticism about an immediate rate hike, favoring maintaining the current policy rate. Powell also mentioned his anticipation of a decline in US inflation until 2024, though his confidence in this outlook has waned due to faster-than-expected price rises.

While high inflation can benefit investors in a robust economy, concerns arise about potential hyperinflation under current governance. The dollar's decline reflects uncertainties about its true value amidst ongoing inflation despite the absence of economic stimulus. Moreover, signs of a potential economic boost, such as an uptick in unemployment claims, warrant caution.

April's export and import figures will provide insight into US efforts to tackle inflation by potentially offloading currency to other nations, which could further weigh on the US dollar. Yields are also falling swiftly as investors await Wednesday's CPI results.

In the UK, the lower-than-expected Claimant count change of 8.9k indicates a strengthening labor market. ECB Governing Council member Wunsch cautioned against hasty interest rate cuts, pointing to persistent wage pressures driving high inflation in the services sector.

GOLD - GOLD has shown strong performance today, and we expect its upward trend to extend beyond 2365.443, with solid support keeping it above 2332.174.

SILVER -Silver ended positively, hinting at further continuation as it held above 28.073 and is likely to surpass 29.018. This consolidation phase suggests orders are accumulating before significant buying.

DXY - The DXY exhibits notable downward momentum, dropping below 105.071 after a whipsaw movement. We anticipate a retest of 104.607 and further decline.

GBPUSD -Despite varied analyst opinions, we maintain a bullish outlook on this pair, with a strong rebound above 1.25740 and significant order accumulation, reinforcing our stance.

AUDUSD -In another pair, a strong rejection from lows following a whipsaw candle indicates bullish sentiment, with price stabilizing above 0.66145, supported by substantial order accumulation.

NZDUSD -Despite consolidation, resistance against bearish sentiment reinforces our bullish view amid an observable uptrend.

EURUSD -Approaching the daily downtrend line, we note robust volume and momentum on the buying side post a test of 1.07757, anticipating continued upward movement.

USDJPY -The Yen appears calm before potential intervention, with anticipation of continued BoJ involvement, awaiting tomorrow's price action post-news release, maintaining our bearish outlook.

USDCHF - Market dynamics show significant rejection at upper levels, suggesting potential for continued bearish momentum, supported by notable selling volume. The price has also accumulated orders outside the daily upward channel.

USDCAD -While there's downward movement, prices overall remain stagnant, not dipping below 1.36052. Upcoming CPI results may catalyze market movement in the required direction.