GBP/USD remains supported at $1.6160 in the early US trade. The cable is forming a long-legged candle for a second day in a row – this could be a bullish reversal signal if confirmed. We need to see a daily close above $1.6200 to buy with a target of $1.6270. On the other hand, fix below $1.6160 would open the way to $1.6060. Watch the UK construction PMI on Thursday – the index is projected to slip from 64.0 to 63.7. However, this is still an elevated level, confirming economic strength.
US Treasury yields keep on falling, giving some hope to the USD/JPY bears. The pair retraced from the daily high at 110.08 into the 109.50 area on Wednesday despite the increase of ADP nonfarm payrolls. Break below the 109.10 support could bring the pair down to 108.40. However, demand for the JPY will likely remain limited ahead of the US labor data on Friday, so we maintain a buy-on-dips strategy.
The dips of AUD/USD are being bought. A rise above $0.8770 will trigger an increase to $0.8830 (a place to sell). Inability to rise above $0.8770 will lead to another decline. Support is at $0.8680. Watch Australian building approvals and trade balance data. Consensus forecasts aren’t very good.
Recommended Content
Editors’ Picks
AUD/USD posts gain, yet dive below 0.6500 amid Aussie CPI, ahead of US GDP
The Aussie Dollar finished Wednesday’s session with decent gains of 0.15% against the US Dollar, yet it retreated from weekly highs of 0.6529, which it hit after a hotter-than-expected inflation report. As the Asian session begins, the AUD/USD trades around 0.6495.
USD/JPY finds its highest bids since 1990, approaches 156.00
USD/JPY broke into its highest chart territory since June of 1990 on Wednesday, peaking near 155.40 for the first time in 34 years as the Japanese Yen continues to tumble across the broad FX market.
Gold stays firm amid higher US yields as traders await US GDP data
Gold recovers from recent losses, buoyed by market interest despite a stronger US Dollar and higher US Treasury yields. De-escalation of Middle East tensions contributed to increased market stability, denting the appetite for Gold buying.
Ethereum suffers slight pullback, Hong Kong spot ETH ETFs to begin trading on April 30
Ethereum suffered a brief decline on Wednesday afternoon despite increased accumulation from whales. This follows Ethereum restaking protocol Renzo restaked ETH crashing from its 1:1 peg with ETH and increased activities surrounding spot Ethereum ETFs.
Dow Jones Industrial Average hesitates on Wednesday as markets wait for key US data
The DJIA stumbled on Wednesday, falling from recent highs near 38,550.00 as investors ease off of Tuesday’s risk appetite. The index recovered as US data continues to vex financial markets that remain overwhelmingly focused on rate cuts from the US Fed.