Here is what you need to know on Wednesday, April 27:
The intensifying flight to safety during the American trading hours caused global stocks to suffer heavy losses and fueled yet another rally in the US Dollar Index, which climbed to its highest level in more than two years near 102.50. The US economic docket will not be featuring any high-impact data releases on Wednesday. European Central Bank (ECB) President Christine Lagarde will be delivering a speech later in the day and investors will remain focused on risk perception.
The S&P 500 Index lost nearly 3% on Tuesday but S&P Futures were last seen rising 0.6% on the day. The benchmark 10-year US Treasury bond yield is also up nearly 2%, pointing to an improving market mood early Wednesday. It's too early to say whether or not risk flows will gather enough momentum to dominate the markets mid-week. Russia's Foreign Minister Sergei Lavrov said on Tuesday that they rejected Ukraine's proposal to hold peace talks in Ukraine. Lavrov further warned that they must not underestimate the risks of a nuclear war. Meanwhile, China has expanded mass coronavirus testing to almost the entirety of Beijing after 33 new locally transmitted cases were detected on April 25.
EUR/USD lost nearly 100 pips on Tuesday and continues to edge lower early Wednesday. The pair was last seen trading at its lowest level in five years at around 1.0620. The data from Germany showed earlier in the session that the Gfk Consumer Confidence for May slumped to -26.5 from -15.7 in April, missing the market expectation of -16 by a wide margin.
GBP/USD fell below 1.2600 for the first time since July 2020 and has gone into a consolidation phase near 1.2580. For the month of April, the pair is down more than 4%.
USD/JPY closed the second straight day in negative territory on Tuesday but managed to stage a rebound during the Asian trading hours on Wednesday. As of writing, the pair was clinging to strong daily gains near 128.00.
After dropping to its lowest level in two months at 0.7118 on Tuesday, AUD/USD turned north in the Asian session on Wednesday. The data from Australia showed that the annual Consumer Price Index (CPI) in the first quarter jumped to 5.1% in the first quarter from 3.5%, surpassing analysts' estimate of 4.6% by a wide margin.
Gold managed to limit its losses on Tuesday and closed at $1,906. Amid the positive shift in risk sentiment early Wednesday, XAU/USD started to edge lower and was last seen posting small daily losses at around $1,900.
Bitcoin fell nearly 6% following Monday's rebound and failed to hold above $40,000. BTC/USD is edging higher but trades below $39,000 in the early European session. Ethereum fell to its lowest level in more than a month at $2,766 on Tuesday. ETH/USD is already up 2% on Wednesday but continues to trade below $3,000.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD keeps the red below 0.6400 as Middle East war fears mount
AUD/USD is keeping heavy losses below 0.6400, as risk-aversion persists following the news that Israel retaliated with missile strikes on a site in Iran. Fears of the Israel-Iran strife translating into a wider regional conflict are weighing on the higher-yielding Aussie Dollar.
USD/JPY recovers above 154.00 despite Israel-Iran escalation
USD/JPY is recovering ground above 154.00 after falling hard on confirmation of reports of an Israeli missile strike on Iran, implying that an open conflict is underway and could only spread into a wider Middle East war. Safe-haven Japanese Yen jumped, helped by BoJ Governor Ueda's comments.
Gold price pares gains below $2,400, geopolitical risks lend support
Gold price is paring gains to trade back below $2,400 early Friday, Iran's downplaying of Israel's attack has paused the Gold price rally but the upside remains supported amid mounting fears over a potential wider Middle East regional conflict.
WTI surges to $85.00 amid Israel-Iran tensions
Western Texas Intermediate, the US crude oil benchmark, is trading around $85.00 on Friday. The black gold gains traction on the day amid the escalating tension between Israel and Iran after a US official confirmed that Israeli missiles had hit a site in Iran.
Dogwifhat price pumps 5% ahead of possible Coinbase effect
Dogwifhat price recorded an uptick on Thursday, going as far as to outperform its peers in the meme coins space. Second only to Bonk Inu, WIF token’s show of strength was not just influenced by Bitcoin price reclaiming above $63,000.