Sterling was relatively unmoved as EU leaders accepted a new Brexit delay. The deadline will be extended until the end of October, with a review in June. Angela Merkel and other EU leaders were prepared to offer a much longer delay, a move that was rejected by Emmanuel Macron. In addition, the EU will continue to monitor UK guarantees to prevent it from interfering with long-term EU plans including the election of the next EU Commission President and the EU budget. This new extension means that Brexit uncertainty will continue, which presents more risks to the UK. For example, companies will be afraid to invest in the country because of the uncertainty.

After initially gaining, the USD stabilized after the Fed released minutes from the March meeting. In the meeting, officials kept their options open regarding interest rates. This is as they weighed the significant uncertainties over the US and global economic growth. This was a change of tone after the previous hawkish statements by the bank. The reason for the change of direction is that the US economy has shown signs of slowdown. The same is true for the world economy. Indeed, on Tuesday, the IMF announced that it was lowering its global economic outlook to 3.3%. In addition, the Fed is facing increased pressure from the US President, who has called for rate cuts and more quantitative easing.

The price of crude oil remained near YTD highs after the EIA released its weekly inventories data. Data from the organization showed that inventories rose by more than 7 million barrels. This was much higher than the 2.29 million barrels that traders were expecting. Last week, this data showed an increase of more than 7.2 million barrels. Previously, data from API had showed that inventories increased by more than 2 million barrels. Today, traders will continue to monitor the situation in Libya. They will also receive the monthly report from the EIA.

EUR/USD

The EUR/USD pair declined to a low of 1.1228 after the Fed released its minutes. It then stabilized and is currently trading at 1.1277 as traders wait for more economic data from Europe. The current price is above the 25-day and 50-day moving averages and closer to the upper line of the Envelopes indicator. After rising sharply after the FOMC meetings, the volumes have returned to yesterday’s lows. There is a likelihood that the pair will continue moving higher as it tries to test the important resistance of 1.1300.

EURUSD

EUR/CHF

The EUR/CHF pair started an upward trend on Monday last week, when it traded at the 1.1160 level. Overnight, the pair reached a high of 1.1305, which is the highest level since March 22. On the hourly chart, this price is closer to the upper line of the Bollinger Bands, while the RSI has remained below the overbought level. In addition, the Average Directional Index (ADX) has declined from a high of 60 to the current 27. Therefore, the pair could find some resistance in these levels.

XTI/USD

The XTI/USD pair remained near the YTD highs after the inventory numbers from the US. The pair is now trading at 64.29, which is close to the high of 64.70. On the hourly chart, this price is along the 25-day EMA and slightly above the 50-day EMA while the Bulls Power has turned negative. The accumulation and distribution indicator has remained near YTD highs. There is a likelihood that the pair will continue moving upwards as it attempts to test the important resistance level of 70.

 

General Risk Warning for FX & CFD Trading. FX & CFDs are leveraged products. Trading in FX & CFDs related to foreign exchange, commodities, financial indices and other underlying variables, carry a high level of risk and can result in the loss of all of your investment. As such, FX & CFDs may not be appropriate for all investors. You should not invest money that you cannot afford to lose. Before deciding to trade, you should become aware of all the risks associated with FX & CFD trading, and seek advice from an independent and suitably licensed financial advisor. Under no circumstances shall we have any liability to any person or entity for (a) any loss or damage in whole or part caused by, resulting from, or relating to any transactions related to FX or CFDs or (b) any direct, indirect, special, consequential or incidental damages whatsoever.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!


Latest Forex Analysis

Editors’ Picks

EUR/USD chops around amid end-of-month flows, ahead of Trump

EUR/USD is battling 1.11, close to the two-month highs amid choppy trading. Hopes for a fiscal boost in Europe and mixed satisfactory data have supported the currency pair. , Sino-American tensions are rising and investors await President Trump's China announcement.

EUR/USD News

GBP/USD advances amid US dollar weakness, shrugging off concerns

GBP/USD is trading above 1.23, edging higher amid US dollar weakness and Britain's gradual reopening. Intensifying Sino-American tensions and the Brexit impasse are ignored. 

GBP/USD News

Cryptocurrencies: $348M in matured derivatives boost the market

Futures and options contracts' expiration brings a wave of volatility to the crypto market. Ethereum takes advantage and attacks resistances in the market dominance chart, Bitcoin goes back. Ripple disappoints despite regaining the third place in market capitalization.

Read more

Canada's economy falls by 8.2% annualized in Q1, better than expected, USD/CAD shakes

The Canadian economy squeezed by an annualized rate of 8.2% in the first quarter of 2020, better than -10% expected. Quarterly, Gross Domestic Product (GDP) squeezed by 2.1%. Most of the downfall occurred in March, with a drop of 7.2%, better than 8.5% projected. 

Read more

WTI drops 4% and eyes $32 mark amid risk-off, weakening demand

The selling pressure around WTI (July futures on Nymex) accelerates following the break below the 33 level, as bears now target the 32 support zone heading into the key US macro data and US President Donald Trump’s response to the Hong Kong issue.

Oil News

Forex Majors

Cryptocurrencies

Signatures