- Risk tone remains heavy as headlines concerning Iran/trade are on the rounds.
- The odds favoring the need for easy monetary policy are getting stronger after the Fed Chair’s Testimony.
Not only the US-China trade tension and rumors of the US air strikes in Syria but news that Iranian boats attempted the British tanker seize also strengthened the markets’ risk-off momentum. With this, GBP/JPY declines to the lowest since July 03 as it trades near 135.35 during early Thursday.
The US and China seem at loggerheads despite recent truce as media releases from both the nations keep raising doubts over the US President Donald Trump’s upbeat statements at the end of G20 that previously triggered broad risk-on.
Adding to the woes was the US Federal Reserve Chairman Jerome Powell’s Testimony that rubberstamped 25 basis points (bps) of a rate cut in their next meeting and cited a downside risk for inflation.
As if aforementioned catalysts weren’t enough to challenge risk-averse traders, rumors of the US readying airstrikes over some part of the Iranian targets in Syria, coupled with the CNN news indicating Iranian boats’ attempt to seize the British oil tanker, added further strength into the safe-havens like Japanese Yen (JPY). Macro risk barometer, the US 10-year treasury yield trims nearly 2 bps to 2.042% by the press time.
Given the lack of major data, investors can keep concentrating on the trade/political headlines to determine the near-term market direction.
Technical Analysis
With the 14-day relative strength index (RSI) trading near oversold territory, the price might attempt a recovery towards recent high surrounding 136.30 ahead of questioning the monthly top near 137.80, if not then late-September 2016 high around 132.50 and the year 2019 low at 131.79 can please the bears.
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 above 1.0700 ahead of key US data
EUR/USD trades in a tight range above 1.0700 in the early 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 above 156.00 after BoJ Governor Ueda's comments
USD/JPY holds above 156.00 after surging above this level with the initial reaction to 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.
Sei Price Prediction: SEI is in the zone of interest after a 10% leap
Sei price has been in recovery mode for almost ten days now, following a fall of almost 65% beginning in mid-March. While the SEI bulls continue to show strength, the uptrend could prove premature as massive bearish sentiment hovers above the altcoin’s price.
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.