The U.S. dollar on Tuesday gains ground against most of its major trading partners, hitting an intraday 22-month high.
Along with the greenback upliftment, the primary rival (EUR/USD) which always benefits from a dollar plunge, dropped significantly. Crude WTI Futures traded at a new high near $66.60 per barrel elevating the commodity-linked CAD. USD/JPY lost 30 pips in a matter of a few minutes.
Once beaten down, bitcoin aficionados are growing louder by the day as the digital currency continues its comeback.
Who’s winning the U.S – China trade war? Is it really the U.S? How has the Pound and the UK economy performed and what about the Eurozone?
Gold markets broke down a bit during the trading session on Tuesday, slicing through sideways support that I had pointed out previously. Beyond that, we also stay below there although there was a bit of a bounce later in the day. At this point though, we have seen where gold is going.
The US dollar initially fell during trading on Tuesday but did find a bit of a bit against the Japanese yen later in the day. By doing what it has done, it shows that there is significant buying underneath as we continue to press up against major resistance.
The British pound went back and forth during the trading session on Tuesday as traders came back to work from the Easter holiday. We sliced through the 1.2950 level, which is an area of major support and it now looks as if we are ready to drift lower.
The British pound initially tried to rally during the trading session on Tuesday but has seen enough selling pressure to turn things back around and start reaching towards the ¥145 level. Just below though, there is a lot in the way of support.
The Euro fell rather hard during the day on Tuesday as European traders came back to work. In fact, the Euro only budged slightly higher to kick off the day and then fell straight down towards which should be a relatively supportive area.
The Aussie dollar rolled over again during the trading session on Tuesday, as we continue to slice to lower levels. We are currently trading around the 0.71 level, which of course will attract a certain amount of attention in the markets, but at this point I’m still interested in buying.
Thin trading conditions could also be helping to exaggerate the sell-off. The Australian and New Zealand markets were closed on Friday and Monday. And they close again on Wednesday. If the major banks and institutions are still on the sidelines, volatility could be heightened and small orders could drive the markets violently in either direction.
With U.S. rates rising and Japanese rates being capped by Bank of Japan policy, the widening spread between U.S. Government bonds and Japanese Government bonds is also helping to make the U.S. Dollar a more attractive asset.
Investing.com - The dollar rose against a basket of major currencies Tuesday as new home sales surged to a 17-month high, suggesting resilience in the U.S. housing market after disappointing existing home sales numbers.
The Bank of Canada is widely tipped to leave interest rates unchanged on Wednesday when policy makers convene for the April central bank meeting.
Based on the early price action, the direction of the June Comex gold futures contract will be determined by trader reaction to the uptrending Gann angle at $1274.30 and the major 50% level at $1272.70.
U.K. stock indexes head solidly higher Tuesday, in post-Easter action, as investors in the commodity-heavy index get the first chance to react to a surge in crude-oil prices.
Based on the early price action, the direction of the EUR/USD is being controlled by two prices: a short-term 50% level at 1.1254 and an uptrending Gann angle at 1.1259.
Demand for risky assets will also influence gold prices. U.S. equity indexes are starting to turn positive in the wake of stronger earnings data from Coca-Cola and United Technologies. A surge to the upside in equities could drive gold prices lower as it approaches a key technical zone at $1272.70 to $1253.00.
During the early hours, the USD/CAD rallied benefitting on the back of greenback elevation. The pair had broken the 200-days SMA and traded above it, inviting more loonie bulls. Investors eye the upcoming Canadian Feb Wholesales figures and the US housing data reports.
After the prolonged Easter Recess, the MPs have resumed office today. And during this holiday time, the pair remained subdued near 1.1300 levels amid lack of events and Brexit updates. While, on the technical side, things remain uncertain. Hence, pair’s upcoming movements will weigh more on the fundamental side of the pound.
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