Forex Today: Dollar edges higher, Bitcoin gets Tesla boost, Fed tension mounts

Yohay Elam FXStreet

Here is what you need to know on Tuesday, April 27:

Markets have been marching higher but the dollar has gained some ground in tense trading ahead of Wednesday's Fed decision. Tesla's Bitcoin ventures are supporting cryptocurrencies.US consumer data is eyed after investment figures disappointed. Vaccine and virus developments are also in play.

The US dollar has been edging higher, with EUR/USD trading below 1.21 and GBP/USD under 1.39. Rising US Treasury yields have replaced worries in carrying the greenback higher. Durable Goods Orders for March missed with a modest increase of 0.5%, contrary to previous figures for last month, which beat estimates.

Tuesday's economic calendar features the Conference Board's Consumer Confidence gauge for April and housing figures. Investors are already eyeing the Federal Reserve's all-important decision on Wednesday.

Chair Jerome Powell and his colleagues will find it harder to defend looser monetary policy amid strong demand for labor and rising price pressures. Volkswagen is the latest carmaker to halt production due to the global chip shortage.

Tesla's earnings beat estimates with 93 cents per share with cost-cutting compensating for lower car prices. Elon Musk's company also revealed it gained $100 million through its Bitcoin investment, which exceeded standard expenditure. The CFO added that "there are lots of reasons to be optimistic" on the cryptocurrency. Bitcoin is trading around $54,000.

Vaccines: The US announced it would give away up to 60 million doses of surplus AstraZeneca inoculations to other countries, most importantly India. The south Asian giant continues suffering from a severe COVID-19 wave. Western countries are experiencing drops in infections as immunizations continue.

The Bank of Japan left its interest rate unchanged at -0.10% as expected and upgraded its growth and inflation forecasts.

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

EUR/USD remains depressed below mid-1.1800s; downside potential seems limited

The EUR/USD pair attracts some sellers for the second consecutive day on Tuesday and hovers below mid-1.1800s amid a relatively quiet trading action during the Asian session. The broader fundamental backdrop, however, warrants some caution for bearish traders before positioning for deeper losses.

GBP/USD trades with negative bias, eyes 1.3600 ahead of UK jobs data

The GBP/USD pair trades with a negative bias for the second straight day, though it lacks bearish conviction and holds above the 1.3600 mark through the Asian session on Tuesday. Traders now look forward to the release of the UK monthly jobs report, which will influence the British Pound and provide some impetus to the currency pair.

Gold declines as trading volumes remain subdued due to holidays in China

Gold price extends its losses for the second successive session, trading around $4,930 per troy ounce during the Asian hours on Tuesday. Gold price is trading nearly 0.7% lower at the time of writing as trading volumes stayed thin due to market holidays across China, Hong Kong, and other parts of Asia.

Top Crypto Gainers: Stable, MemeCore and Nexo rally test critical resistance levels

Stable, MemeCore, and Nexo are among the leading gainers in the crypto market over the last 24 hours, while Bitcoin remains below $70,000, suggesting renewed interest in altcoins among investors.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.