Today's Economic Spotlight

The US Dollar exhibited a lack of clear direction as investors exercised heightened caution in anticipation of significant upcoming events. Among these are the release of US inflation figures and the publication of the FOMC Minutes, both slated for Wednesday. This cautious sentiment reverberated throughout global markets, contributing to mixed performances in the forex realm and a general decline in global yields.

Today's spotlight is on several crucial economic events, including the release of the Consumer Price Index (CPI), Wholesale Inventories data, and the much-awaited FOMC Minutes. Additionally, market participants will closely monitor speeches by Fed officials Bowman and Goolsbee. These events are expected to offer valuable insights into the Federal Reserve's monetary policy stance, particularly in light of expectations for a potential easing cycle to commence as early as June.

Amid recent upward revisions in inflation projections, Fed Chair Jerome Powell maintained a cautious tone, emphasizing the importance of patience in response to evolving economic data. The upcoming events will shed further light on the Fed's approach to managing inflationary pressures and its implications for future monetary policy decisions. Investors are keenly attuned to any indications of a shift in the Fed's stance, as these could significantly impact market dynamics and asset valuations.

Forex Market Highlights:

AUD/USD: The pair maintains its upward trajectory, successfully surpassing the key resistance level at 0.6625. Sustained bullish momentum could propel prices towards March's high and possibly even challenge the major resistance at 0.6677. Market participants eagerly await the release of April's Consumer Inflation Expectations, which could inject additional volatility into the market.

NZD/USD: After encountering a significant resistance level, the pair has displayed a notable shift from bearish to bullish sentiment. This bullish continuation may lead to a test of the next resistance level at 0.6119. However, bears remain active, and the support at 0.5978 looms large as a crucial level to monitor for potential downside pressure.

EUR/USD: Initial resistance was observed near the three-week peaks around 1.0900. Establishing a strong support level around 1.0851 could embolden bulls to challenge the next resistance at 1.0923. Market focus now shifts to the European Central Bank's interest rate decision scheduled for April 11, which is expected to influence the pair's future direction.

GBP/USD: The pair briefly breached the psychologically significant level of 1.2700 before retracing near the 50-moving average. Investors are closely monitoring crucial US economic data releases scheduled for today, alongside upcoming UK GDP readings later in the week. These events are likely to impact market sentiment and drive price action in the GBP/USD pair.

USD/CAD: Amid cautious sentiment ahead of the US CPI release and the Bank of Canada's monetary policy decision today, the Canadian Dollar experienced a retreat. Key support and resistance levels to watch for are situated at 1.3598 and 1.3522 respectively, which could determine the pair's near-term trajectory.

USD/JPY: Consolidation persists above the critical level of 151.70 amidst ongoing speculation regarding potential forex intervention. Market participants await key Japanese economic data releases and speeches scheduled for today, which could provide insights into future volatility for the USD/JPY pair.

USD/CHF: The pair remains range-bound as it tests the support level at 0.9026. Despite reduced expectations of Federal Reserve rate cuts, market sentiment remains positive. Traders are monitoring for any shifts in sentiment that could influence the pair's movement in the near term.

Commodities Market:

US Oil: WTI prices extended their decline for the third consecutive session, inching closer to the significant psychological level of $85.00 per barrel. Market sentiment remains cautious ahead of the Energy Information Administration's (EIA) weekly report on US crude oil inventories, with investors closely monitoring supply dynamics for clues about future price movements and market stability.

Gold: Continuing its upward trajectory, gold prices climbed to a new record high of $2,365 per troy ounce, marking the third consecutive session of gains. Heightened uncertainty in global markets, coupled with persistent inflation concerns, has fueled demand for the precious metal as a safe-haven asset. Investors are closely monitoring geopolitical tensions and economic data releases for further cues on gold's future direction.

Silver: Reaching levels not seen since early June 2021, silver prices revisited the $28.30 region, extending their recent bullish momentum. Despite advances in US Treasury bond yields, indicating improving investor sentiment, silver's resilience highlights strong underlying demand for the metal. Market participants continue to monitor geopolitical developments and economic indicators for potential shifts in silver's price dynamics.

US Stocks:

Major US indices retreated from recent highs as investors adopted a cautious stance ahead of the release of crucial economic data, particularly the US Consumer Price Index (CPI). Expectations of a potential acceleration in inflation rates have heightened market uncertainty, with investors closely scrutinizing the data for insights into Federal Reserve policy decisions.

SP500: The S&P 500 index continued to consolidate within a narrow range, hovering between the key levels of $5,184.97 and $5,261.54. This consolidation reflects a period of indecision among investors as they await clarity on inflationary trends and the potential implications for monetary policy. Market participants are closely monitoring price movements within this range for clues about the index's future direction.

Dow Jones: The Dow Jones Industrial Average experienced a notable decline, testing support near the $38,592 level while attempting to challenge resistance at $39,105. This downward movement underscores the cautious sentiment prevailing in the market, with investors exhibiting hesitancy amid uncertainty surrounding inflation data and its impact on future policy decisions.

NASDAQ: The NASDAQ index continued its consolidation for the second consecutive day, reflecting a subdued market sentiment as investors await critical US economic data. This consolidation phase suggests a temporary pause in the recent bullish momentum, with market participants exercising caution until there is greater clarity on inflation trends and central bank responses.

In summary, market participants are closely monitoring key economic events and data releases for insights into inflationary trends and potential policy shifts by central banks. The outcome of these events continues to influence market sentiment and asset prices, prompting investors to exercise caution and adopt a wait-and-see approach until there is greater clarity on the economic

Here's today's scheduled economic news and reports:

Wednesday, April 10:

05:00 GMT+3 - NZD - Official Cash Rate

           - NZD - Official Cash RateRBNZ Rate Statement

15:30 GMT+3 - USD - Consumer Price Index (CPI)

16:45 GMT+3 - CAD - BOC Monetary Policy Report

           - CAD - BOC Rate Statement

           - CAD - Overnight Rate

17:30 GMT+3 - CAD - BOC Press Conference

19:45 GMT+3 - USD - FOMC Member Barkin Speaks

20:01 GMT+3 - USD - 10-y Bond Auction

21:00 GMT+3 - USD - FOMC Meeting Minutes prices.