The FX space today was subdued in the US session as investors await the nonfarm payrolls tomorrow and sit on their hands, cautious over US President, Donald Trump and the Chinese President, Xi Jinping, meeting today for the first time.
The risk sentiment is still low, with stocks looking relatively flat on the day so far. US yields were ranged bound, rising from 2.3281intially to 2.3642 but down to 2.3426 at time of writing. The greenback was making its today advance after the release of weekly unemployment claims, down to 234K in the week ending March 31st, much better that the 250K expected
The US dollar was slightly higher up 0.13% an hour before the close, although markets remain out of favour of the dollar given their concerns over Trump's policies not coming into effect soon enough considering how much his sweeping tax cuts had been priced in too soon. The dollar was also aided by the ECB announcements that there will not be any rate rises this side of 2018 leading to offers down to 1.0628 in the euro.
The yen traded in a narrow band between 111.15/28 with the minor correction on the hourly chart as a double bottom at 110.30 area. WTI traveled higher to meet yesterday's highs with a slight recovery in commodities across the board, scoring a high of $51.54bbls. Gold was a narrow chop between $1,249.50 and $1,259.32. The antipodeans were relatively weak with the Aussie better offered from 0.7577 highs down to 0.7532 lows. The Kiwi fell 0.6599 highs to 0.6958 lows.
The day ahead:
All ears will be on the ground for any news from Donald Trump and the Chinese President, Xi Jinping's summit in Florida that started today and concludes in the Us session tonight.
Key events from US session:
- When is the Trump/Xi Jinping meeting and how could affect DXY?
- WTI up for a double top around $51.50?
- Pentagon in detailed discussions with White House about military options on Syria - RTRS
- ECB's Constancio: Bank's board holds wide consensus on monetary policy - Reuters
- AUD/USD intermarket: what is iron ore's relationship with the Aussie currently?
- US stocks flat as investors wary ahead of Trump-Xi summit
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
EUR/USD holds below 1.0750 ahead of key US data
EUR/USD trades in a tight range below 1.0750 in the European session on Friday. The US Dollar struggles to gather strength ahead of key PCE Price Index data, the Fed's preferred gauge of inflation, and helps the pair hold its ground.
USD/JPY stays firm above 156.00 after BoJ Governor Ueda's comments
USD/JPY stays firm above 156.00 after surging above this level on the Bank of Japan's decision to leave the policy settings unchanged. BoJ Governor said weak Yen was not impacting prices but added that they will watch FX developments closely.
Gold price oscillates in a range as the focus remains glued to the US PCE Price Index
Gold price struggles to attract any meaningful buyers amid the emergence of fresh USD buying. Bets that the Fed will keep rates higher for longer amid sticky inflation help revive the USD demand.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
US core PCE inflation set to signal firm price pressures as markets delay Federal Reserve rate cut bets
The core PCE Price Index, which excludes volatile food and energy prices, is seen as the more influential measure of inflation in terms of Fed positioning. The index is forecast to rise 0.3% on a monthly basis in March, matching February’s increase.