The dollar traded marginally higher Tuesday, helped by gains against the more defensive currencies, the Japanese yen and the Swiss franc, on the last trading day of the month. At 3:05 AM ET (0705 GMT), the U.S. Dollar Index, which tracks the greenback against a basket of six other currencies, stood at 99.597, up 0.3%. “The talk is Japanese names are short of dollars (as the fiscal year comes to an end), which is likely to keep the dollar bid well into London time,” Yukio Ishizuki, FX strategist at Daiwa Securities, told CNBC.
European stock markets are set to edge higher Tuesday, lifted by signs of an economic stabilization in Asia. C/hina's official Purchasing Managers' Index rose to 52 in March from a plunge to a record low of 35.7 in February, above the 50-point mark that separates monthly growth from contraction. As welcome as this is, economists are still forecasting a steep contraction in China's first-quarter gross domestic product, the first such contraction in three decades.
PMI numbers out of China impress early. Will a busy economic calendar be enough to distract the markets from the continued spread of COVID-19?
Gold markets have pulled back initially during the trading session on Monday but have turned around to show signs of life again. Ultimately, we are essentially “killing time” at this point.
The US dollar has initially plunged against the Japanese yen during the trading session on Monday, but then turned around to show signs of life again. By doing so, it’s very obvious that the market is trying to stabilize near the ¥108 level, an area that has been important in the past.
The British pound initially dipped lower to kick off the week but turned around to reach towards the 1.24 level by the time the Americans came on board. Because of this, it looks like we are still going to try to break above the 1.25 handle.
The British pound initially fell during trading on Monday but has turned around significantly to form signs of strength yet again.
The Euro fell hard during the trading session on Monday, reaching down towards the 1.10 level by the time the US came on board. That being the case, it’s very likely that we will focus on this 1.10 level over the next couple of sessions.
The Australian dollar has gone back and forth during the trading session on Monday to kick off the week on a back foot. Ultimately, this is a market that looks a little bit exhausted.
The gold futures contract gained 0.18% on Friday, as it extended a short-term consolidation following Monday’s – Tuesday’s rally. The market reacted to the previous Sunday’s Fed unlimited Quantitative Easing announcement.
Market volatility doesn’t appear to be going anywhere and that’s not going to change until the spread of the coronavirus slows and slows materially.
Based on the early price action and the current price at 1.1032, the direction of the EUR/USD the rest of the session on Monday is likely to be determined by trader reaction to the steep uptrending Gann angle at 1.1036.
Based on the early price action and the current price at $1644.70, the direction of the June Comex gold futures contract the rest of the session on Monday is likely to be determined by trader reaction to the downtrending Gann angle at $1647.80.
Litecoin has proven to be one of the most stable cryptocurrencies during the recent chaos and volatility of the past month. After falling to as low as $25 on 13th March Litecoin bounced back significantly, with it now consolidating just below the $40 level of resistance. A breakout above $40 would indicate an upcoming 20% rally to the upside with $48 becoming a potential target to the upside. However, with the market seemingly in a downtrend what's more likely is another sell off that would take Litecoin back to test the $27 level of support. Litecoin is one of the most well-known cryptocurrencies having been created back in 2013 when it was worth less than $3. It has, like most
XAU/USD made a strong bullish bounce up at the support zone. But the wave patterns, however, suggest a longer correction zone via an ABCDE triangle.
The British pound rallied firmly against the dollar last week to signal that a near-term bottom for the pair is in. The pair was aided by a weaker dollar and traders will assess this week if that weakness is here to stay.
After rallying for six consecutive sessions, EUR/USD is seen retreating in early trading at the start of the new week to retest its 200-day moving average.