No economic reports are due during the Asian session on Tuesday. After a quiet beginning of the week, investors will focus on earnings reports while preparing for crucial economic events later in the week, including Australian inflation, US and Eurozone GDP, US Core PCE and the Bank of Japan meeting.
Here is what you need to know on Tuesday, April 25:
On a quiet American session, the US Dollar weakened further as Wall Street indexes rebounded. The Dow Jones gained 0.20%, the S&P 500 rose 0.09%, and the Nasdaq lost 0.29%. US bond yields dropped, with the 10-year falling to 3.50% and the 2-year to 4.12%. Volatility in the US Treasury market is set to remain elevated amid the debt-ceiling drama and key data and events ahead. The divergence across the curve shows that the difference between the one-month and the three-month bill yields it at record highs.
Tuesday will be a busy day with earnings from Microsoft, Alphabet, Visa, PepsiCo, Novartis, McDonald's, UPS, Verizon, Texas Instruments, General Electric, UBS, Halliburton and Spotify. Economic data due from the US include the S&P/Case-Shiller Home Price and New Home Sales. The focus is on Thursday's GDP reading which includes key consumer inflation numbers. Next week is the FOMC meeting. The Federal Reserve (Fed) is expected to raise rates by 25 basis points and signal a pause.
The US Dollar Index fell to 101.35 reaching weekly lows. It is pointing south, looking vulnerable. USD/CHF posted the lowest daily close since January 2021, below 0.8900.
EUR/USD rose to the 1.1050 zone, approaching year-to-date highs supported by hawkish comments from European Central Bank (ECB) officials ahead of the May 4 meeting.
GBP/USD benefited from a weaker Dollar approaching 1.2500. The trend is up. The UK will inform Public Sector Net Borrowing on Tuesday. EUR/GBP rose for the third day, boosted by higher Eurozone bond yields and is near April highs.
USD/JPY finished a quiet Monday higher but far from the highs and trending lower, below 134.30. The pair remains sensitive to US yields. On Friday, the Bank of Japan will announce its monetary policy decision on Ueda's first meeting as governor.
AUD/USD rebounded after hitting weekly lows at 0.6665 and climbed toward 0.6700. Australia will report inflation on Wednesday; next week, it's the Reserve Bank of Australia meeting.
The Kiwi outperformed among commodity currencies. NZD/USD recovered from monthly lows, rising above 0.6150, and AUD/NZD pulled back further to the 1.0850 area.
USD/CAD finished flat at 1.3540. The rally faces strong resistance at 1.3565, and a correction seems likely.
Gold rose modestly after holding above last week's lows, reaching $1,990. Silver retook $25.00 after bottoming at $24.75.
Cryptocurrencies performed mixed. Bitcoin gave signs of reaching an interim bottom after rebounding from monthly lows below $27,000 to $27,500. An improvement in market sentiment helped crude oil prices. WTI rose 1%, moving closer to $80.00.
Like this article? Help us with some feedback by answering this survey:
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 Weekly Forecast: Sellers gain confidence alongside the Fed Premium
The EUR/USD pair fell towards a fresh two-month low of 1.0900, finishing the second consecutive week in negative though little changed at around 1.0940.
Read full analysis
GBP/USD Weekly Forecast: Pound Sterling stays vulnerable ahead of UK inflation data Premium
The Pound Sterling (GBP) booked the second straight weekly loss against the US Dollar (USD), sending the GBP/USD pair to the lowest level in a month below 1.3050.
Gold Weekly Forecast: XAU/USD holds above key support area after bearish action to start week Premium
Gold (XAU/USD) declined sharply in the first half of the week but regained its traction after coming within a touching distance of $2,600.
Bitcoin Weekly Forecast: Will BTC decline further?
Bitcoin’s (BTC) price fell over 6% at some point this week until Thursday, extending losses for a second consecutive week, as it faced rejection from a key resistance barrier.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.