The US dollar was seen trading weak on the day on Wednesday. Inflation data released by the Labor Department showed that headline inflation for March rose 0.4%, beating estimates.

This pushed the annual inflation rate to 1.9%. However, core CPI rose just 0.1% on the month taking the annualized core CPI to 2.0%. This was the lowest reading since February last year.

 

ECB Keeps Policy Steady as Expected

The European central bank held its monetary policy meeting on Wednesday. The central bank maintained a dovish policy view but refrained from making any major policy changes. The ECB is set to reinvest its QE debt for an extended period of time even after the first rate hike, which is due only next year. The common currency initially fell but managed to recover by the close.

 

Can the EURUSD Breakout Higher?

While the ECB meeting sent the euro lower on the day, price quickly retraced those losses. The EURUSD tested the lower support at 1.1245 as mentioned yesterday and is now trading near the resistance level of 1.1275. A breakout higher is required for the EURUSD to continue the gains to the upside. The next main target is seen at 1.1300, followed by a move to 1.1330.

eurusd

 

FOMC Minutes – Rate Hikes Not Completely Ruled Out

The Federal Reserve Bank released its monetary policy meeting minutes on Wednesday. The minutes from the March meeting showed that Fed officials kept the options open for rate hikes if the economy improves. However, the majority of the policymakers were of the view that the current economic outlook and risks would require no change to interest rates for the remainder of the year.

 

Will XAUUD Reverse Gains?

XAUUSD rallied to a fresh two-week high on Wednesday but price retreated after touching intraday highs of 1310. Price action remains stuck in the resistance area of the 1307 – 1301 region. If we see a reversal lower, then gold could be potentially turning lower. However, the support at 1285 will be a key level in determining further declines.

xauusd

 

EU and UK Agree to Yet Another Brexit Extension

The UK PM May was in Brussels on Wednesday to plead her case for another extension to the Brexit deadline which was due to expire on April 12th. EU leaders agreed to May’s plea and extended Brexit until October 2019. EU President Donald Tusk said that this would give the UK more time to leave the EU in an orderly fashion.

 

Will GBPUSD Hold the Trend Line?

The cable managed to post a strong reversal just off the rising trend line which falls above the support area of 1.2998 – 1.2971. While price action remains flat for the moment, the range-bound activity is likely to continue. As long as the trend line holds, GBPUSD could be seen attempting to push higher. GBPUSD will be looking to target the previous highs of 1.3177.

gbpusd

This market forecast is for general information only. It is not an investment advice or a solution to buy or sell securities.

Authors' opinions do not represent the ones of Orbex and its associates. Terms and Conditions and the Privacy Policy apply.

Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange, you should carefully consider your investment objectives, level of experience, and risk appetite. There is a possibility that you may sustain a loss of some or all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Feed news

Latest Forex Analysis

Editors’ Picks

EUR/USD hits 11-day high despite Eurosceptic parties gaining ground in EU elections

The EUR may remain bid in Europe – more so, as the Chinese Yuan is gaining ground as of writing. That said, trading volumes will be thin on account of holidays in the UK and US. As a result, gains seen today may not be sustainable.

EUR/USD News

GBP/USD: Recovery remains capped near 1.2750 amid Brexit anxiety

The GBP/USD pair is seen consolidating the overnight surge to 1.2755 levels, as the recovery mode remains intact on the 1.27 handle heading into quiet European trading. 

GBP/USD News

USD/JPY keeps gains near 109.50 amid light trading

The USD/JPY pair is on the bids near 109.50 ahead of Europe open on Monday. The 110.55/60 resistance-confluence including 100-day simple moving average (SMA) and 23.6% Fibonacci retracement of January to April rise acts as strong upside cap.

USD/JPY News

The Evolution of Three Issues are Key in the Week Ahead

As May winds down, the light economic calendar will allow investors to take their cues from the evolution of three disruptive forces--trade, Brexit and the US economy.  With actions against Huawei and possibly a handful of Chinese surveillance equipment producers, the US raised the stakes.

Read more

Gold aims to revisit $1289/90 despite UK/US holiday

With the pessimism surrounding global trade developments and greenback weakness joining EU election results, Gold prices are on the bids near $1287.30 while heading into the European session on Monday.

Gold News

Majors

Cryptocurrencies

Signatures