Forex Today: Mood remains mixed as focus shifts to US data

Eren Sengezer FXStreet

Here is what you need to know on Wednesday, April 26:

The US Dollar (USD) is finding it difficult to build on Tuesday recovery gains early Wednesday as investors' focus shift to upcoming data releases. Led by tech-heavy Nasdaq Futures, US stock index futures trade in positive territory and the 10-year US Treasury bond yield hold steady slightly above 3.4%. Durable Goods Orders for March and Wholesale Inventories will be featured in the US economic docket ahead of Thursday's highly anticipated Gross Domestic Product (GDP) report for the first quarter.

The USD benefited from souring market mood on Tuesday after Wall Street's main indexes opened in negative territory and continued to push lower. With Microsoft and Google Alphabet releasing upbeat earnings reports for the first quarter after the closing bell, however, technology stocks gained traction and Nasdaq Futures were last seen rising more than 1% on the day. On the other hand, major European equity indexes trade modestly lower in the early session. Meanwhile, the US Dollar Index started to edge lower 101.50 after having gained 0.5% on Tuesday.

During the Asian trading hours, the data from Australia revealed that the Consumer Price Index declined to 7% on a yearly basis in the first quarter from 7.8%. The Reserve Bank of Australia's (RBA) Trimmed Mean CPI in the same period edged lower to 6.6% from 6.9%, coming in much lower than the market forecast of 7.2%. Softer-than-expected inflation data seem to be weighing on the Australian Dollar and AUD/USD was last seen trading at its lowest level in five weeks near 0.6600.

EUR/USD turned south on Tuesday and erased all of Monday's gains to close below 1.1000. The pair has regained its traction early Wednesday and recovered above 1.1000 early Wednesday. Gfk Consumer Confidence Index for Germany improved to -25.7 for May from -29.3 in April, helping the Euro find a foothold.

GBP/USD fell sharply but managed to hold above 1.2400 on Tuesday. The pair benefits from the renewed USD weakness and climbs toward 1.2450 in the European morning on Wednesday.

Despite the USD's decisive rebound on Tuesday, Gold price edged higher supported by the retreating US yields. XAU/USD stays relatively quiet on Wednesday and trades within a touching distance of $2,000.

USD/JPY broke below 134.00 on Tuesday as the Japanese Yen found demand as a safe haven. The pair consolidates its recent losses and holds above 133.50 early Wednesday.

Bitcoin gathered recovery momentum and rose nearly 3% on Tuesday. BTC/USD continues to stretch higher toward $28,500 mid-week. Ethereum registered small losses on Tuesday and continues to fluctuate in a tight range below $1,900 on Wednesday.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

AUD/USD falls to near 0.7100 after slipping below 50-day EMA

AUD/USD depreciates after registering minor gains in the previous day, trading around 0.7120 during the Asian hours. The technical analysis of the daily chart shows the pair consolidating sideways within a rectangle pattern, as neither bulls nor bears gain control. The AUD/USD pair is holding a slight bearish tone however as it sits beneath both the nine-day and 50-day EMAs.

160.00: USD/JPY back near intervention territory after upbeat US jobs report

US Nonfarm Payrolls beat expectations by a wide margin in May, with 172K jobs added. The US Dollar rebounds after the release, helping USD/JPY recover from its intraday lows. Warnings from Japanese authorities continue to limit upside potential near the 160.00 threshold.

Gold targets $4,300 amid stronger Dollar

Gold faces increasing selling interest and navigates the area of three-month lows near the $4,300 mark per troy ounce on Friday. The precious metal’s decline comes as traders assess the stronger-than-expected NFP, while the bid bias in the Greenback and higher US Treasury yields also collaborate with the retracement.

Cardano hits five-year low even as Hoskinson clarifies "break" isn't an exit

Cardano (ADA) price is down 10% at press time on Friday, extending losses over 30% so far this week amid Charles Hoskinson's clarification that "break" isn't an exit.

Week ahead – Fed countdown begins amid US inflation data and geopolitical risks

Fed Chair Warsh’s first meeting approaches as key US inflation data could reshape expectations. Oil prices remain elevated as US-Iran talks continue; tariffs also return to the spotlight. ECB is expected to hike; will it be a one-off move or is July live?

The US economy defies the rules: 100 days into the Oil shock and the recession signal is still missing

More than three months after the start of the Iran war and the resulting disruption to global energy markets, the US economy continues to display remarkable resilience. The conflict has triggered a sharp rise in Oil prices, reignited inflationary pressures and fueled widespread concerns about a potential economic slowdown.