USD/JPY: The greenback remains out of the market’s favour

FXStreet Team FXStreet

The USD/JPY pair is trading down for a second consecutive day, as the greenback remains out of the market’s favour, according to FXStreet’s Chief Analyst Valeria Bednarik.

Key quotes

“The sentiment is sour as the number of coronavirus cases in the US has surpassed those in China, while the spread in Europe gives no signs of easing.”

“Japan published Tokyo March inflation, which resulted slightly below expected, at 0.4% YoY, although the core reading, excluding fresh food and energy prices, remained stable at 0.7% YoY.”

“Later today, the US Personal Income and Spending figures for February are due, along with PCE inflation. Given that the numbers are from pre-crisis, they would likely have no impact on prices.”

Author

FXStreet Team

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 stays offered near 1.3370

GBP/USD remains on the back foot, slipping back toward the 1.3370 zone on Tuesday. Cable has come under pressure soon after testing the 1.3400 neighbourhood as investors turned more cautious in response to renewed effervescence on the geopolitical front.

EUR/USD slips back to 1.1420, daily lows

EUR/USD now accelerates its daily retracement and revisits the 1.1420 region, or daily troughs. The pair’s decline comes amid the gain of upside momentum in the US Dollar amid renewed tensions in the Strait of Hormuz and a sell-off in Asian technology stocks.

Gold weakens toward $4,100

Gold adds to Monday’s decent pullback and trades close to the $4,100 mark per troy ounce on Tuesday. In the meantime, fresh geopolitical effervescence appear to have reignited inflation concerns, which in turn, limit any recovery attempt from the precious metal.

Bitcoin: BTC struggles despite renewed ETF inflows as Strategy sale impact fades

Bitcoin (BTC) falls below $64,000 on Tuesday, erasing part of the recent gains following six consecutive days of price rises. Institutional demand shows signs of recovery, with spot ETFs recording a second day of inflows through Monday after weeks of outflows.

Bye, forward guidance: How to trade when central banks choose silence

Central banks have spent years telling markets what might come next. Now, traders face the possibility that they say a lot less. From the Federal Reserve to the European Central Bank and the Bank of England, policymakers are pushing back against forward guidance, arguing that the current world demands more flexibility.