Forex markets midweek risk tolerance stays unchanged. Risk inflows persist to fuel financial market activity.
Forex Markets Remain Risk Sensitive
Risk movements keep going to propel financial market activity in the middle of the week. With US stock index futures moving notably higher on the European morning. After a two-day decline, the US Dollar Index is clinging to a small comeback. Whereas the 10-year US T-bond yield remains over 3.5%. In the American period, Pending Home Sales will be on the economic agenda.
| Bonds | Yield | Day | Month | Year | Date | |
|---|---|---|---|---|---|---|
| US 10Y | 3.5450 | -0.02% | -0.453% | 1.185% |
Forex markets view Economic Reports and Geo-Political Situation
On the adverse aspects. China’s Taiwan Affairs Office threatened retaliation for Taiwan President Tsai Ing-wen’s Wed trip to the US. This story, on the other hand, does not appear to be having an effect on attitudes toward risk.
Over Asian times of trading, Australian data showed that the Monthly Consumer Price Index (CPI) fell to 6.8% year on year in February from 7.4% in January. The result came lower than the market expectation of 7.1%. Reviving hopes that the RBA will stop its hiking cycle at its policy meeting next week. As a result, the AUDUSD fell and last traded at 0.6675, down 0.5% on the day.
The EUR, GBP, Yen, and Bitcoin in View
The EURUSD experienced a technical correction early Wednesday but remains safely above 1.0800. The GfK Consumer Confidence Index in Germany fell to -29.5 in April from -30.6. But this figure did not cause a market response.
EURUSD values to keep an eye on
At this point, this pair is down 0.10% at 1.0832 and meets resistance at 1.0712 (low March 24), 1.0637 (100-day SMA), then at 1.0516. A break above 1.0929 (monthly top March 23) would aim at 1.1032 (2023 peak Feb 2), on the way to 1.1100 approximately.
GBPUSD gained for the second day in a row on Tuesday before entering an uptrend period, close to 1.2300 on Wednesday. Late in the session, the Bank of England’s Financial Policy Committee will issue its quarterly report.
GBPUSD Support and Resistance
After the events of Tuesday, resistance appears to have established at 1.2350. Over that mark, the rising channel’s midpoint coincides. with the next barrier at 1.2370. Before the duo can reach 1.2400. (psychological level.
The USDJPY gained strength and moved toward 132.00 early Wednesday. Haruhiko Kuroda, Governor of the BoJ, stated on Wednesday that Japan is “more near than ever before to reliably hitting the 2% inflation goal.”
Bitcoin restored steam early Wed, rising nearly 3% to just more than $28,000. On Tuesday, Ethereum gained over three percent and proceeded to rise on Wednesday. ETHUSD was last seen at $1,810, up 2% on the day.
