Yen strength has spilled over from last week, giving rise to trading opportunities this week, while mixed US CPI and Retail Sales data has also spurred price action. The better-than-expected inflation data has lifted hopes for four interest hikes by the fed in 2018, so the initial market reaction was bullish, however, a contraction in Retail Sales led to the USD parring its moves.
A firm Japanese currency has led to JPY-crosses declining to key support, with EUR/JPY briefly trading below 132.00, while GBP/JPY found support at the 148.00 handle. Elsewhere, despite positive CPI data for the US, the major pairs have benefitted from a weaker Dollar, as DXY was unable to hold above 90.00. In the cryptocurrency complex, Bitcoin broke above $9000, while Litecoin outperformed to make new monthly highs.
Risk Warning: This is the SBForex view of the market and is not trading/investment advice. Foreign Exchange and CFD trading carries a high level of risk and may not be suitable for all investors. There is a possibility that you may sustain a loss equal to or greater than your entire investment. Therefore, you should not invest or risk money that you cannot afford to lose.
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AUD/USD remained bid above 0.6500
AUD/USD extended further its bullish performance, advancing for the fourth session in a row on Thursday, although a sustainable breakout of the key 200-day SMA at 0.6526 still remain elusive.
EUR/USD faces a minor resistance near at 1.0750
EUR/USD quickly left behind Wednesday’s small downtick and resumed its uptrend north of 1.0700 the figure, always on the back of the persistent sell-off in the US Dollar ahead of key PCE data on Friday.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
Bitcoin price continues to get rejected from $65K resistance as SEC delays decision on spot BTC ETF options
Bitcoin (BTC) price has markets in disarray, provoking a broader market crash as it slumped to the $62,000 range on Thursday. Meanwhile, reverberations from spot BTC exchange-traded funds (ETFs) continue to influence the market.
US economy: slower growth with stronger inflation
The dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.