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FXStreet
Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.
GBP/USD trades with mild losses below 1.3550 in the European session. The US Dollar recovers some ground amid ongoing Middle East tensions and hawkish expectations around the Fed's interest rate outlook, weighing on the pair ahead of US data releases.
EUR/USD struggles to capitalize on the overnight bounce and drifts near 1.1600 in European trading hours on Tuesday. The pair remains under pressure amid a modest US Dollar rebound. Traders now look to the preliminary reading of the Eurozone Harmonized Index of Consumer Prices (HICP) for fresh trading impetus.
Gold sticks to modest intraday losses around the $4,430 region heading into the European session, and remains well within striking distance of a one-and-a-half-week low, which was touched the previous day. US Federal Reserve Chair Kevin Warsh's comments last Friday lifted market bets for an imminent interest rate hike and undermined the non-yielding yellow metal.
Ripple, Cardano, and Dogecoin remain weak after double-digit losses last week, testing their crucial Exponential Moving Averages for immediate support. The technical outlook warns of further weakness in the prices of XRP, ADA, and DOGE as bullish momentum eases.
The rise in global yields continues unabatedly. Ongoing elevated oil/energy prices, markets anticipating tighter monetary policy and higher (fiscal) risk premia all are possible explanations for this trend move. Ongoing tensions in the Middle East pushed the oil price back to the $90/b area. While the move wasn’t that big as such, it supported a higher for longer narrative.
The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.
