Positive risk sentiment, USD weaker

Frank Walbaum

lmportant news this week:

Thu, 16th, 08:00 CET UK Gross Domestic Product.

Sterling outperforms as markets shift focus to earnings

The British Pound is one of the strongest major currencies today, benefiting from continued US Dollar weakness and resilient UK economic expectations. The Canadian Dollar remains broadly unchanged after the Bank of Canada's latest policy decision, as the central bank delivered few surprises and offered limited new guidance. With no major economic releases scheduled today, FX markets are likely to remain driven by technical factors and corporate earnings.
Precious metals remain under pressure despite the weaker US Dollar. Silver is approaching a key technical support level, and a confirmed break could accelerate selling momentum. Gold is also trading softer, although it continues to outperform Silver on a relative basis. In cryptocurrencies, Bitcoin remains capped by its 50-day moving average on the daily chart, limiting upside momentum for now. Ethereum continues to outperform and shows stronger technical momentum, while XRP remains well supported as investors maintain selective exposure to larger altcoins.

Market talk

With the economic calendar relatively quiet, attention shifts to the start of the corporate earnings season. Results from major US companies will provide fresh insight into consumer demand, business investment, and the outlook for corporate profits. Strong earnings could help equities extend their recent gains despite mixed macroeconomic signals, while disappointing results may trigger profit-taking after the strong rally seen in recent months. For now, markets remain broadly constructive, but technical levels across FX, equities, metals, and crypto continue to dominate short-term trading.

Tendencies in the markets

Equities at resistance, USD weak, BTC positive, oil rising, Silver weak, Gold weak.

Author

Frank Walbaum

GBP/USD trims losses, approaches 1.3500

GBP/USD adds to the multi-day negative streak, although it has managed to bounce off earlier four-week lows near 1.3470 on Wednesday. Meanwhile, Cable’s deep correction comes despite the tepid performance in the Greenback and the persistent geopolitical concerns.

EUR/USD slips back toward 1.1580 on USD recovery

EUR/USD comes under some pressure and revisits the 1.1580 region as the NA session draws to a close on Wednesday. That said, spot adds to Tuesday’s bearish performance while the Greenback is slowly gathering steam and leaving behind earlier lows.

Gold keeps the recovery in place; focus is back to $4,400

Gold continues to regain ground lost and sets its target on the $4,400 mark per troy ounce on Wednesday. The yellow metal’s rebound comes amid modest losses in the US Dollar, steady geopolitical uncertainty and mixed US Treasury yields.

Bitcoin and Gold Outlook: BTC comes under pressure, XAU rebounds amid US-Iran strikes

Bitcoin (BTC) remains neutral-to-bullish, edging lower near $77,000 support on Wednesday. The largest cryptocurrency by market capitalization has been unable to sustain a recovery after being rejected around $81,500 last Friday. Meanwhile, its downside appears broadly protected due to an established moving average cluster.

BoC recap: Risks are shifting as Oil prices and US trade actions complicate outlook

The Bank of Canada (BoC) left its overnight interest rate unchanged at 2.25% on Wednesday, as widely anticipated, but delivered a more cautious message as inflation risks increased and the recovery became harder to assess.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.