Forex Today: Firm US data poured cold water over rate cut bets

Pablo Piovano FXStreet

The Greenback retreated from recent peaks, sponsoring some much-needed respite in the risk-linked universe as European investors returned to their desks following the extended Easter holidays.

Here is what you need to know on Wednesday, April 3:

The Greenback came under renewed selling pressure and forced the USD Index (DXY) to recede to 104.70 following recent peaks beyond 105.00. On April 3, the ADP Employment Change takes centre stage, seconded by the final S&P Global Services PMI and the ISM Services PMI. In addition, the Fed's Bowman, Goolsbee, Barr, Kugler, and Powell are all due to speak.

EUR/USD managed to regain some balance and bounced off multi-week lows near 1.0720 on the back of the Dollar’s weakness. On April 3, the advanced Inflation Rate in the euro area will be in the spotlight, along with the Unemployment Rate.

GBP/USD set aside three daily negative sessions and advanced modestly on Tuesday, briefly challenging the 1.2580 region on the back of the resurgence of some selling interest in the Dollar.

USD/JPY maintained its consolidative phase unchanged, always above the 151.00 level and surrounded by persistent concerns over a potential FX intervention.

AUD/USD rose markedly and left behind part of the recent weakness, regaining at the same time the area beyond 0.6500 the figure. On April 3, the Ai Group Industry Index is due.

Prices of WTI rose to a new 2024 high past the $85.00 mark per barrel, underpinned by escalating geopolitical tensions.

Gold prices rose to an all-time high near the $2,280 level per troy ounce on the back of strong safe-haven demand. Its cousin Silver advanced nearly 4% and surpassed the $26.00 mark per ounce for the first time since May 2023.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

GBP/USD weakens to two-week lows near 1.3520

GBP/USD trades on the back foot, returning to the low 1.3500s, or two-week troughs, on Tuesday. Cable’s bearish price action follows decent gains in the Greenback at the time when investors assess latest US data releases and the persistent uncertainty in the US-Iran crisis.

EUR/USD remains offered; breaks below 1.1600

EUR/USD now accelerates its daily correction, breaching below the key 1.1600 support level on Tuesday. The pair’s daily correction comes on the back of a decent bounce in the US Dollar despite disappointing US data releases and amid persistent geopolitical concerns.

Gold flirts with multi-week lows near $4,300

Gold accelerates its correction and recedes toward the key $4,300 mark per troy ounce on Tuesday. The yellow metal’s persistent decline comes in response to the solid performance of the US Dollar and a sharp move higher in US Treasury yields across the curve.

Bitcoin and Gold Outlook: Bitcoin broadly consolidates, Gold falls as US JOLTS Job Openings rise

Bitcoin (BTC) maintains sideways trading around the immediate $78,000 support on Tuesday. The Crypto King outlook shows signs of cooling after the recent rally above $81,000. However, its downside remains protected, with major moving averages providing support and steady capital inflows absorbing some selling pressure.

Global bond market sell off haunts markets

Global sovereign bonds are selling off as we start a new month. The UK is, unsurprisingly, taking the biggest hit. Two and 10-year yields rose by 10 basis points at one point on Tuesday, and are currently higher by 7 and 8bps respectively.

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.