Forex Today: US Dollar trying to find a foothold ahead of mid-tier data


Here is what you need to know on Tuesday, April 25:

Following the selloff seen in the American session on Monday, the US Dollar (USD) tries to stabilize early Tuesday with the US Dollar Index recovering from the 10-day low it set at 101.20 in the early Asian session. February Housing Price Index, March New Home Sales and the Conference Board's Consumer Confidence Index for April will be featured in the US economic docket later in the day.

US Consumer Confidence Preview: Recession hints likely to keep the USD under pressure.

The sharp decline witnessed in the US Treasury bond yields weighed heavily on the USD on Monday. The benchmark 10-year US Treasury bond yield lost more than 2% and declined below 3.5% for the first time since April 14. Early Tuesday, the 10-year yield is having a difficult time staging a rebound. Meanwhile, Wall Street's main indexes closed mixed with the Nasdaq Composite posting modest losses and the Dow Jones Industrial Average adding 0.2%. US stock index futures trade in negative territory in the European morning.

EUR/USD capitalized on the renewed USD weakness on Monday and registered strong gains. The pair seems to have gone into a consolidation phase around 1.1050 early Tuesday. Since there won't be any high-tier data releases from the Euro area, the USD's valuation and comments from European Central Bank (ECB) policymakers could drive the pair's action.

GBP/USD closed in positive territory on Monday and continued to push higher during the Asian trading hours on Tuesday. The pair, however, lost its traction after having met resistance at 1.2500 and was last seen trading modestly lower on the day at around 1.2470.

USD/JPY closed flat slightly above 134.00 on Monday and continues to trade in a tight range on Tuesday. Earlier in the day, "we see risk of inflation undershooting forecast as bigger than risk of overshooting, which is why the Bank of Japan (BoJ) must maintain easy policy now," BoJ Governor Kazuo Ueda said.

Gold price benefited from falling US yields and gathered bullish momentum on Monday. XAU/USD continues to edge higher toward the key $2,000 level on Tuesday.

Following Monday's indecisive action, Bitcoin edges slightly lower early Tuesday and was last seen trading below $27,500. Ethereum lost 1% on Monday and is already another 1% on Tuesday, trading slightly above $1,800.

Share: Feed news

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


Recommended content

Editors’ Picks

AUD/USD begins Thursday’s session flat ahead of RBA Hunter speech

AUD/USD begins Thursday’s session flat ahead of RBA Hunter speech

The Aussie Dollar tumbled more than 0.50% on Wednesday versus the Greenback amid elevated US Treasury yields, as another bond auction witnessed softer demand. The AUD/USD trades near 0.6608, almost flat as Thursday’s Asian session commences.

AUD/USD News

EUR/USD tumbles back to 1.08 region, investors turn to US GDP and PCE inflation

EUR/USD tumbles back to 1.08 region, investors turn to US GDP and PCE inflation

EUR/USD pulled back sharply on Wednesday, falling back to the 1.0800 handle after broad risk appetite evaporated. The pair is trading firmly into technical resistance as investors gear up for a batch of mid-tier European economic indicators on Thursday, followed by an update to US quarterly GDP growth.

EUR/USD News

Gold slumps amid strong US Dollar, high US Treasury yields

Gold slumps amid strong US Dollar, high US Treasury yields

Gold prices slump on Wednesday amid rising US Treasury yields, boosting demand for the Greenback due to hawkish comments by a Federal Reserve official. Consequently, sentiment shifted sour, the US Dollar climbed, and the XAU/USD is trading at $2,339.

Gold News

Ethereum sideways move persists, analyst says ETH ETF will only see 20% of Bitcoin flows

Ethereum sideways move persists, analyst says ETH ETF will only see 20% of Bitcoin flows

Ethereum sustained its sideways movement on Wednesday as Bloomberg analyst Eric Balchunas compared spot ETH ETFs to Silver ETFs, predicting that they will only see 20% of the flows recorded across Bitcoin ETFs.

Read more

Dow Jones Industrial Average sheds 400 points on Wednesday as risk aversion weighs

Dow Jones Industrial Average sheds 400 points on Wednesday as risk aversion weighs

The Dow Jones Industrial Average is broadly lower on Wednesday, shedding over 400 points and backsliding below 38,500.00. The major equity index is down nearly nine-tenths of a percent as investor sentiment sours.

Read more

Forex MAJORS

Cryptocurrencies

Signatures