Forex News Timeline

14:29 NZD/USD Price Analysis: Exhibits volatility contraction near 0.5900
The NZD/USD pair drops to near the crucial support of 0.5900 in Tuesday’s European session while attempting to break above the immediate resistance of 0.5930.

NZD/USD falls to 0.5900 even though the US Dollar remains sideways.Investors await the US core PCE Price Index that will influence speculation for Fed rate cuts.NZD/USD consolidates in a 0.5850-0.5933 range for almost a week.The NZD/USD pair drops to near the crucial support of 0.5900 in Tuesday’s European session while attempting to break above the immediate resistance of 0.5930. A sideways performance is anticipated from the Kiwi asset as investors await the United States core Personal Consumption Expenditure Price Index (PCE) data for March, which will be published on Friday. The inflation data will be keenly watched as it will provide cues about when the Federal Reserve (Fed) could start reducing interest rates. The inflation data will influence the Fed’s guidance on interest rates, which will be provided in next week’s monetary policy meeting in which key borrowing rates are widely expected to remain unchanged in the range of 5.25%-5.50%. Market sentiment remains cheerful as investors expect that conflicts between Iran and Israel will not widen further. S&P 500 futures have posted significant gains in the London session, portraying higher investors’ risk-appetite. 10-year US Treasury yields hovers near 4.63% with eyes on US core PCE inflation data, which is expected to have grown steadily by 0.3% on a month-on-month basis. The New Zealand Dollar drops despite improved appeal for risk-sensitive assets. Meanwhile, expectations for the Reserve Bank of New Zealand (RBNZ) reducing interest rates later in November remain firm. The speculation for the RBNZ pivoting interest rate cuts postponed for later this year after the Q1 Consumer Price Index (CPI) grew expectedly by 0.6%.The NZD/USD pair has moved back and forth between 0.5850 and 0.5933 over the past week, suggesting a sharp volatility contraction. The 20-period Exponential Moving Average (EMA) at 0.5910 remains stuck to spot prices and exhibits indecisiveness among market participants. The 14-period Relative Strength Index (RSI) oscillates in the 40.00-60.00 range, suggesting a consolidation ahead. Fresh downside would appear if the asset breaks below April 16 low at 0.5860. This would drag the asset toward 8 September 2023 low at 0.5847, followed by the round-level support of 0.5900 On the flip side, a recovery move above March 18 high at 0.6100 will drive the pair toward March 12 low at 0.6135. A breach of the latter will drive the asset further to February 9 high around 0.6160. NZD/USD four-hour chartNZD/USD Overview Today last price 0.5909 Today Daily Change -0.0010 Today Daily Change % -0.17 Today daily open 0.5919 Trends Daily SMA20 0.5968 Daily SMA50 0.6058 Daily SMA100 0.6121 Daily SMA200 0.6053 Levels Previous Daily High 0.593 Previous Daily Low 0.5886 Previous Weekly High 0.5954 Previous Weekly Low 0.5851 Previous Monthly High 0.6218 Previous Monthly Low 0.5956 Daily Fibonacci 38.2% 0.5913 Daily Fibonacci 61.8% 0.5903 Daily Pivot Point S1 0.5894 Daily Pivot Point S2 0.5868 Daily Pivot Point S3 0.585 Daily Pivot Point R1 0.5938 Daily Pivot Point R2 0.5956 Daily Pivot Point R3 0.5982

14:25 BoE's Pill: Time for cutting bank rate remains some way off
"The combination of little news and the passage of time have brought a bank rate cut somewhat closer," Bank of England (BoE) Chief Economist Huw Pill said on Tuesday and added: "The lack of news gives me no reason to depart from my baseline that the time for cutting bank rate remained some way off." Key takeaways "Caution against expectations that the Bernanke report will lead to a rapid change in how UK monetary policy is presented." "How, when, I would vote for a bank rate cut depend crucially on how

"The combination of little news and the passage of time have brought a bank rate cut somewhat closer," Bank of England (BoE) Chief Economist Huw Pill said on Tuesday and added: "The lack of news gives me no reason to depart from my baseline that the time for cutting bank rate remained some way off." Key takeaways "Caution against expectations that the Bernanke report will lead to a rapid change in how UK monetary policy is presented." "How, when, I would vote for a bank rate cut depend crucially on how such a decision transmits to inflation, in particular along the money market yield curve." "A cut in bank rate would not entirely undo the restrictive stance of policy." "MPC currently needs to maintain restrictiveness in its monetary policy stance." Market reactionGBP/USD edged higher following these comments and was last seen rising 0.3% on the day at 1.2387.

14:19 Upward revision to BoJ CPI inflation forecast may afford little protection to JPY – Rabobank
Analysts at Rabobank share their outlook for USD/JPY ahead of the Bank of Japan's (BoJ) policy meeting later in the week.

Analysts at Rabobank share their outlook for USD/JPY ahead of the Bank of Japan's (BoJ) policy meeting later in the week. Market will watch out for signs of any change in BoJ’s bond buying programme "It is our house view that the Fed is likely to kick off its rate cutting cycle in September. If US economic data support this view, the USD could start to edge lower in the summer which would likely allow the JPY to find some purchase against the USD. In the meantime, the MoF will be hoping for an improvement in Japanese economic data to keep the JPY bears at bay." "An upward revision to the BoJ’s CPI inflation forecast at this week’s policy meeting may afford a little protection to the JPY, though this would have more impact if policy-makers assess that domestically driven price pressures have risen." "In addition to its policy rates, the market will also be watching out for signs of any change in the BoJ’s bond buying programme. If the BoJ is judged by the market as lacking any hawkish signals, downside pressure in the JPY would likely increase suggesting more pressure on the MoF to put its money where its mouth is. Our 3 month USD/JPY 148 forecast assumes that the Fed will be laying the groundwork for a September rate cut during the summer."

14:08 USD/JPY marks up a 34-year high as USD returns to favor
USD/JPY pulls back a touch after making a new high for April – and the last 34 years – at 154.86 on Tuesday, as the US Dollar (USD) returns to favor amid continued optimism regarding the US economy.

USD/JPY rises to another multi-decade high amidst enthusiasm for the US Dollar. US economic exceptionalism and a massive US Treasury bond sale are fueling USD buying. Japanese Finmin verbal intervention warning is ignored by USD/JPY. USD/JPY pulls back a touch after making a new high for April – and the last 34 years – at 154.86 on Tuesday, as the US Dollar (USD) returns to favor amid continued optimism regarding the US economy. USD/JPY bulls deaf to Suzuki warning USD/JPY rallies despite Japanese Finance Minister Shunichi Suzuki warning the authorities might directly intervene to prop up the Japanese Yen (JPY) on Tuesday. Suzuki said that “the environment” is ripe for currency intervention. In addition, USD/JPY is now well above the historic intervention zone, seen as 150.00-152.00. Last week US Treasury Secretary Janet Yellen met with the Finance Ministers of Japan and South Korea and tacitly agreed to allow them to prop up their currencies if necessary, according to Bloomberg News. The slight uptick in Japanese preliminary Purchasing Manager Index (PMI) data for April, released on Tuesday, only temporarily slowed USD/JPY’s relentless climb. Traders now look to US S&P Global PMIs out at 13.45 GMT, for more information regarding the progress of the US economy. A higher-than-expected result will reinforce the US’s reputation for economic exceptionalism and continue USD/JPY’s uptrend. Massive US Treasury bond sale may underpin USD/JPY The US government is auctioning $180 billion worth of Treasury Notes this week as the US government issues more debt. $180B is a very large amount in such a short space of time – equivalent to a quarterly allocation normally – according to Mark Cranfield of Bloomberg MLIV. In addition, the largest ever auction of 2-year US Treasury Notes is taking place on Tuesday. The auctions are likely to lead to higher US Treasury yields and given increased demand from foreign bond buyers, USD buying which could have a bullish impact on USD/JPY, says Cranfield. USD/JPY traders prepare for Friday’s BoJ meeting Bank of Japan (BOJ) Governor Kazuo Ueda noted it was “appropriate to keep easy monetary conditions for now as underlying inflation is still below 2.0%”. Ueda cautioned “If the price trend rises toward 2.0% in line with our outlook…it will mean raising the short-term interest rate,” according to a note by private investment bank Brown Brothers Harriman (BBH). The Bank of Japan’s (BoJ) April policy meeting takes place on Friday. It is unlikely the BoJ will increase interest rates at the meeting but there is a chance it may reduce Japanese Government Bonds (JGB), which would be viewed as hawkish, JPY positive, and bearish for USD/JPY. If the BoJ delivers a hawkish hold on Friday it is unlikely the Japanese authorities will intervene to prop up the Yen, according to BBH. “The BOJ is widely expected to keep the policy rate target at 0 to 0.10%. However, the BOJ may raise slightly its 2024 core inflation projections implying greater room to tighten policy. Indeed, Japan’s April Jibun Bank Flash Composite PMI shows private sector growth quickening at the fastest pace in eight months and price pressures intensifying,” says BBH. Data on the horizon US data could further impact USD/JPY volatility during the week, with GDP on Thursday and Core Personal Consumptions – Price Index data on Friday. In Japan, the Statistics Bureau of Japan will release the Tokyo Consumer Price Index just hours before Friday’s BoJ meeting.

13:55 Gold price extends losses on weak safe haven demand, Fed’s hawkish outlook
Gold price (XAU/USD) extends its downside for a second consecutive day, trading slightly below the crucial support of $2,300 in Tuesday’s European session.

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The precious metal shifts into bearish territory as investors shrug off Middle East fears amid hopes that the conflict between Iran and Israel will not escalate further. This has improved investors’ risk appetite while safe-haven demand has waned. The outlook of Gold turns vulnerable as an improved appeal for the US Dollar negatively impacts the dollar-denominated commodity. Investment banking firm Goldman Sachs said: “As we move into the second quarter, ongoing upgrades to already-robust US growth forecasts give the FOMC the luxury of a later and more gradual policy adjustment.” The US Dollar Index (DXY), which tracks the US Dollar’s value against six major currencies, hovers near 106.00. Meanwhile, 10-year US Treasury yields trade sideways around 4.62% as the focus shifts to the US core Personal Consumption Expenditure Price Index (PCE) data for March, which will be published on Friday. The inflation data will provide cues about the Federal Reserve’s (Fed) guidance on interest rates in the May policy meeting, in which policymakers are widely anticipated to keep them unchanged in the range of 5.25%-5.50%. The Fed’s preference for keeping interest rates higher bodes well for the US bond yields and weighs on Gold. Daily digest market movers: Gold price weakens while US bond yields consolidate Gold price dips below the crucial support of $2,300 as safe-haven demand has melted amid easing Middle East tensions. The limited retaliatory attack from Israel on Isfahan against the hundreds of missiles and drones launched in their state on April 13 as well as Iran’s no plan for an immediate response indicate that both nations aren’t interested in widening the conflict. Apart from that, recent hawkish guidance from Federal Reserve policymakers on interest rates has also weighed on Gold. Fed policymakers see the current monetary policy framework as appropriate given that inflation has remained stubbornly higher in the first three months of this year and labor demand remains robust. Fed policymakers are expected to keep interest rates at their current levels until they get confidence that inflation will come down to the 2% target. Currently, traders expect that the Fed will start reducing interest rates from the September meeting. This week, investors will focus on the US core PCE Price Index data, which will influence expectations for Fed rate cuts. The monthly core PCE is estimated to have grown steadily by 0.3%, with annual figures decelerating to 2.6% from 2.8% in February. The core PCE is the Fed’s preferred inflation measure as it excludes volatile food and energy prices. Softer-than-expected US inflation numbers would increase expectations of early rate cuts by the Fed, which will help Gold gauge a firm footing. On the contrary, sticky or hotter-than-expected figures will likely weigh on Gold prices. Before the US core PCE inflation data, investors will focus on the preliminary Q1 Gross Domestic Product (GDP), which exhibits the performance of the US economy in the period. The economy is anticipated to have expanded at an annualised pace of 2.5%, slower than the 3.4% increase noted in the last quarter of 2023. Technical Analysis: Gold price tests territory below $2,300Gold price faces an intense sell-off after a breakdown of the Symmetrical Triangle formation on the hourly time frame. The precious metal slips below $2,300 as a downside break of the above-mentioned pattern explodes the volatility, resulting in wider ticks on the downside and heavy selling volume. The 20-period Exponential Moving Average (EMA) at $2,317 is acting as a major barricade for the Gold price bulls. The 14-period Relative Strength Index (RSI) has delivered a range shift move from the 40.00-60.00 territory to the 20.00-40.00 region, indicating that a bearish momentum has been triggered. Gold FAQs Why do people invest in Gold? Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government. Who buys the most Gold? Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves. How is Gold correlated with other assets? Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal. What does the price of Gold depend on? The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.

13:54 US Dollar flat ahead of record 2-year note auction – BBH
Analysts at BBH share their near-term outlook for the US Dollar.

Analysts at BBH share their near-term outlook for the US Dollar. Dollar rally should continue "The dollar is trading flat ahead of a record 2-year note auction. DXY is trading flat near 106.087 but remains on track to test the November 1 high near 107.113." "The dollar rally should continue as data confirm persistent inflation and robust growth in the US This backdrop along with upcoming heavy UST supply should keep upward pressure on US yields, which would be positive for the dollar. We believe that while market easing expectations have adjusted violently this month, there is still room to go. When the market finally capitulates on the Fed, the dollar should gain further." "US yields remain elevated ahead of heavy supply. The 2-year yield is trading at 4.99% and on track to test the October high near 5.26%, while the 10-year yield is trading near 4.61% and on track to test the October high near 5.02%. Heavy supply could help push yields higher. Treasury auctions a total of $183 bln in 2-, 5-, and 7-year notes this week. The first leg is today with $69 bln of 2-year notes to be auctioned. Bid/cover ratio was 2.62 at the previous auction, while indirect bidders took 65.8%. The auctions continue tomorrow with $70 bln of 5-year notes and end Thursday with $44 bln of 7-year notes."

13:47 Oil spikes with setback on Kurdish Oil Exports
Oil prices are recovering from a small dip on Monday, which saw Crude falling towards a key pivotal level on the daily chart.

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The uptick on Tuesday comes on the back of US sanctions against Iran being set to become law by next week, ratcheting up tensions again. The second supportive element comes from a setback in talks between Iraq and Turkey on resuming Oil flows from Iraq’s Kurdistan fields, needing more talks to get the pipeline operational again after being closed for more than a year. The US Dollar Index (DXY), which tracks the US Dollar’s value against six major currencies, faces a retracement and dips below 106.00 on Tuesday. Its biggest contributor, the Euro, which accounts for 57.6% of the basket, goes against the Greenback. The Euro jumped higher after surprise beats for both France, Germany and the Eurozone’s Services Purchasing Managers Index (PMI) data for April. Although the manufacturing sector is still in contraction, markets ignored that fact and sent the Euro higher on the back of the Services strong figures. Crude Oil (WTI) trades at $82.27 and Brent Crude at $86.73 at the time of writing.Oil news and market movers: Iraq Oil flow back in playThe reopening of the Iraq-Turkey oil pipeline would add 500,000 barrels per day to the market. Turkey has already signalled that it is open and ready to receive flow after it had to halt the pipeline output due to earthquakes in February 2023, Bloomberg reported. Iran sanctions are expected to have a muted impact on Oil prices, according to Jim Lucier from Capital Alpha Partners. Lucier pointed out that US President Joe Biden will not want to risk another increase in Oil prices, which could trigger another surge in inflation and might risk his reelection possibilities in the upcoming US elections in November. At 20:30 GMT, the American Petroleum Institute (API) is set to release the weekly Crude Stockpile Changes for the week ending April 19, which is expected to rise by 1.8 million from a build of 4.09 million barrels seen the week before. Oil Technical Analysis: Bounce higherOil prices are in the green on Tuesday as markets trade at a solid equilibrium after tensions eased in the Middle East. However, the current price action remains fragile with US sanctions set to come in effect next week. Although they might not target Iranian Oil, they could trigger a redirection from Iran’s Oil towards other clients and away from the US and Europe. The Middle East remains thus at risk, requiring a lingering premium to remain in the price action for Oil for quite some time. With geopolitical tensions lingering, the November 3 high at $83.34 and the $90 handle should remain as resistance on the upside. One small barrier in the way is $89.64, the peak from October 20. In case of further escalating tensions, expect even September’s peak at $94 to become a possibility, and a fresh 18-month high could be on the cards. On the downside, the October 6 low at $80.63 is the next candidate as a pivotal support level. Below that level, the 55-day and the 200-day Simple Moving Averages (SMAs) at $80.37 and $79.67 should halt any further downturn. US WTI Crude Oil: Daily Chart WTI Oil FAQs What is WTI Oil? WTI Oil is a type of Crude Oil sold on international markets. The WTI stands for West Texas Intermediate, one of three major types including Brent and Dubai Crude. WTI is also referred to as “light” and “sweet” because of its relatively low gravity and sulfur content respectively. It is considered a high quality Oil that is easily refined. It is sourced in the United States and distributed via the Cushing hub, which is considered “The Pipeline Crossroads of the World”. It is a benchmark for the Oil market and WTI price is frequently quoted in the media. What factors drive the price of WTI Oil? Like all assets, supply and demand are the key drivers of WTI Oil price. As such, global growth can be a driver of increased demand and vice versa for weak global growth. Political instability, wars, and sanctions can disrupt supply and impact prices. The decisions of OPEC, a group of major Oil-producing countries, is another key driver of price. The value of the US Dollar influences the price of WTI Crude Oil, since Oil is predominantly traded in US Dollars, thus a weaker US Dollar can make Oil more affordable and vice versa. How does inventory data impact the price of WTI Oil The weekly Oil inventory reports published by the American Petroleum Institute (API) and the Energy Information Agency (EIA) impact the price of WTI Oil. Changes in inventories reflect fluctuating supply and demand. If the data shows a drop in inventories it can indicate increased demand, pushing up Oil price. Higher inventories can reflect increased supply, pushing down prices. API’s report is published every Tuesday and EIA’s the day after. Their results are usually similar, falling within 1% of each other 75% of the time. The EIA data is considered more reliable, since it is a government agency. How does OPEC influence the price of WTI Oil? OPEC (Organization of the Petroleum Exporting Countries) is a group of 13 Oil-producing nations who collectively decide production quotas for member countries at twice-yearly meetings. Their decisions often impact WTI Oil prices. When OPEC decides to lower quotas, it can tighten supply, pushing up Oil prices. When OPEC increases production, it has the opposite effect. OPEC+ refers to an expanded group that includes ten extra non-OPEC members, the most notable of which is Russia.

13:30 US Dollar eases on the back of upbeat PMIs in Europe
The US Dollar (USD) eases on Tuesday as the Euro rallies across the board. The move came on the back of a triple whammy in Eurozone data, with the preliminary Services component in the Purchasing Managers Index (PMI) for Germany, France and

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Surprisingly upbeat PMI data from France, Germany and the Eurozone trigger substantial strength in the Euro.The US Dollar Index eases and snaps below 106.00. The US Dollar (USD) eases on Tuesday as the Euro rallies across the board. The move came on the back of a triple whammy in Eurozone data, with the preliminary Services component in the Purchasing Managers Index (PMI) for Germany, France and the Eurozone beating estimates and even climbing above 50, which means that the sector is no longer in contraction. This positive news for the Eurozone triggered an ample amount of Euro-strength and dragged the Dollar Index (DXY) lower, as the Euro conforms to 57.6% of the basket’s weight. On the economic data front, the S&P Global Purchasing Managers Index (PMI) data for the US will be released on Tuesday, which will likely be another market-moving event for the Greenback. Traders will want to see if this US Dollar exceptionalism, mainly driven by the strength of the US economy, is still ongoing and is not yet slowing down. Daily digest market movers: Here comes the volatilityPreliminary French HCOB Services PMI picked up to 50.5 in April from 48.3. German HCOB Services PMI soared to 53.3 in the same month from 50.1 in March. This pushed EUR/USD up to 1.0695, despite all other segments in the PMI lagging or being still in contraction in both France and Germany. Eurozone data showed that HCOB Services PMI rose to 52.9 in April from 51.5 in March, well above the expected increase to 51.8. The weekly US Redbook Index for the week ending April 19 is set to be released at 12:55 GMT. The previous number was 4.9% for the week ending April 12. At 13:45 GMT, some fireworks are expected from the US preliminary S&P Global PMI data: The Services component is expected to head to 52 in April from 51.7. The Manufacturing number is expected to tick up to 52 from 51.9 in March. The Composite Index was at 52.1 in March, with no forecast available for the current month. At 14:00 GMT, New Home Sales are expected to rise to 0.668 million in March from 0.662 million in February. In addition to the Home Sales data, the Richmond US Federal Reserve (Fed) Manufacturing Index for April will be released as well. Expectations are for a small increase to -7 from -11. The US Treasury is allocating new bonds in the market at 17:00 GMT. This one will bear a 2-year maturity. In the commodity space, both Oil and Gas futures are falling as tensions in the Middle East ease. Equity markets are in the green, though mildly. An outlier needs to be reported: the Hong Kong Hang Seng is down 0.70%. According to the CME Group’s FedWatch Tool, expectations are further cementing that the Fed will keep its monetary policy unchanged in June, with a small 15% chance for an interest rate cut in that meeting. An initial interest rate cut from the Fed is now foreseen for September. The benchmark 10-year US Treasury Note trades around 4.62%, a touch softer for this week. US Dollar Index Technical Analysis: Dollar exceptionalism to get confirmedThe US Dollar Index (DXY) is facing some retreat due to renewed Euro strength. The Euro accounts for 57.6% of the DXY Index composition and is thus the main driver for the index’s moves. With the US PMI data being released later in the day, markets will be able to compare the European against the American performance. Positive data could drive the US Dollar stronger and send the DXY Index back above 106.00 as traders could reassure the US is still outperforming the Eurozone. On the upside, the high of April 16 at 106.52 is the level to beat. Further up and above the 107.00 round level, the DXY Index could meet resistance at 107.35, the October 3 high. On the downside, the first important level is 105.88, a pivotal level since March 2023 (acting as a resistance at that moment and working as a support in November). Further down, 105.12 and 104.60 should also act as support ahead of the 55-day and the 200-day Simple Moving Averages (SMAs) at 104.17 and 103.91, respectively. US Dollar FAQs What is the US Dollar? The US Dollar (USD) is the official currency of the United States of America, and the ‘de facto’ currency of a significant number of other countries where it is found in circulation alongside local notes. It is the most heavily traded currency in the world, accounting for over 88% of all global foreign exchange turnover, or an average of $6.6 trillion in transactions per day, according to data from 2022. Following the second world war, the USD took over from the British Pound as the world’s reserve currency. For most of its history, the US Dollar was backed by Gold, until the Bretton Woods Agreement in 1971 when the Gold Standard went away. How do the decisions of the Federal Reserve impact the US Dollar? The most important single factor impacting on the value of the US Dollar is monetary policy, which is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability (control inflation) and foster full employment. Its primary tool to achieve these two goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Fed’s 2% target, the Fed will raise rates, which helps the USD value. When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates, which weighs on the Greenback. What is Quantitative Easing and how does it influence the US Dollar? In extreme situations, the Federal Reserve can also print more Dollars and enact quantitative easing (QE). QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is a non-standard policy measure used when credit has dried up because banks will not lend to each other (out of the fear of counterparty default). It is a last resort when simply lowering interest rates is unlikely to achieve the necessary result. It was the Fed’s weapon of choice to combat the credit crunch that occurred during the Great Financial Crisis in 2008. It involves the Fed printing more Dollars and using them to buy US government bonds predominantly from financial institutions. QE usually leads to a weaker US Dollar. What is Quantitative Tightening and how does it influence the US Dollar? Quantitative tightening (QT) is the reverse process whereby the Federal Reserve stops buying bonds from financial institutions and does not reinvest the principal from the bonds it holds maturing in new purchases. It is usually positive for the US Dollar.

12:31 Mexican Peso trades mixed as PMIs test health of global economy
The Mexican Peso (MXN) is trading mixed on Tuesday after plummeting temporarily at the end of last week, but then reverting to mean after fears of an escalation in the conflict in the Middle East abated.

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Mexican Economic Activity data failed to inject much volatility into the Peso on Monday. The short-term uptrend looks vulnerable to breakdown. The Mexican Peso (MXN) is trading mixed on Tuesday after plummeting temporarily at the end of last week, but then reverting to mean after fears of an escalation in the conflict in the Middle East abated. Mexican Peso shrugs off macro data The Mexican Peso did not gain much traction on Monday despite the release of better-than-expected macroeconomic data for February. Economic Activity rose 1.4% MoM and 4.4% YoY in the second month of the year compared to January’s 0.9% and 1.9% increases, respectively, according to data from the Instituto Nacional de Estadistica, Geografia e Informatica (INEGI). Other news relevant to MXN included comments from Banxico Governor Victoria Rodriguez Ceja, who said that services inflation is not showing a clear downward trend. Rodriguez Ceja added that the Mexican Peso’s strength has, at times, helped contain inflation by lowering the cost of imported goods. Her comments reinforce the view that the central bank will be data dependent in its approach to monetary policy going forward. In March, Banxico cut interest rates by 0.25% for the first time in three years after inflation showed progress lower. The minutes of the meeting, however, showed a lack of conviction about whether inflation had fallen in a sustainable fashion. This suggested another cut at their next meeting in May is not guaranteed. Mexican mid-month inflation data for April, out on Wednesday, could adjust expectations for the Banxico’s policy approach going forward. Mid-month inflation in March stood at 4.48% for headline and 4.69% for core YoY, and 0.27% and 0.33%, respectively, on a monthly basis. A higher-than-previous result is likely to further lower the probability of the central bank following up the March rate cut with another cut in the near term, and vice versa for a lower-than-previous result. Interest rates are a major driver of Forex markets. Higher interest rates appreciate a currency by attracting more inflows of foreign capital and the opposite for lower interest rates. Tuesday also sees the release of key global macroeconomic data in the form of April Purchasing Manager Indices (PMI) for most major economies (although Mexico’s PMIs are not scheduled for release until May 2). Eurozone PMIs have already been released and showed mixed results, with gains in Services but a deeper-than-forecast decline in Manufacturing PMI. S&P Global PMIs for the US are scheduled for release at 13:45 GMT and could inject volatility into markets, especially for the most heavily traded MXN pair the USD/MXN. Technical Analysis: USD/MXN short-term uptrend vulnerable USD/MXN continues to trade below a major trendline for the long-term downtrend, despite briefly breaking above the line last week during the highly volatile reaction to the Israel-Iran conflict. The brief piercing of the trendline and spike higher reversed the short-term and intermediate-term downtrends but not the longer-term trend, which remains bearish. USD/MXN 4-hour Chart A closer look at the 4-hour chart shows that the new short-term uptrend is vulnerable. A break below Monday’s 17.01 swing low would bring the short-term uptrend into doubt. The Moving Average Convergence/Divergence (MACD) has crossed its signal line, giving a sell signal and is falling in line with price, overall painting a bearish picture. If a pullback persists, support from the 100-day SMA at 16.96 followed by the 50-day SMA at 16.82 is likely to provide a foothold for the backsliding price. A decisive break above the trendline at roughly 17.45 would provide bullish reconfirmation and activate an upside target at roughly 18.15. A decisive break would be one characterized by a longer-than-average green daily candlestick that pierces above the trendline and closes near its high, or three green candlesticks in a row that pierce above the level. Banxico FAQs What is the Bank of Mexico? The Bank of Mexico, also known as Banxico, is the country’s central bank. Its mission is to preserve the value of Mexico’s currency, the Mexican Peso (MXN), and to set the monetary policy. To this end, its main objective is to maintain low and stable inflation within target levels – at or close to its target of 3%, the midpoint in a tolerance band of between 2% and 4%. How does the Bank of Mexico’s monetary policy influence the Mexican Peso? The main tool of the Banxico to guide monetary policy is by setting interest rates. When inflation is above target, the bank will attempt to tame it by raising rates, making it more expensive for households and businesses to borrow money and thus cooling the economy. Higher interest rates are generally positive for the Mexican Peso (MXN) as they lead to higher yields, making the country a more attractive place for investors. On the contrary, lower interest rates tend to weaken MXN. The rate differential with the USD, or how the Banxico is expected to set interest rates compared with the US Federal Reserve (Fed), is a key factor. How often does the Bank of Mexico meet during the year? Banxico meets eight times a year, and its monetary policy is greatly influenced by decisions of the US Federal Reserve (Fed). Therefore, the central bank’s decision-making committee usually gathers a week after the Fed. In doing so, Banxico reacts and sometimes anticipates monetary policy measures set by the Federal Reserve. For example, after the Covid-19 pandemic, before the Fed raised rates, Banxico did it first in an attempt to diminish the chances of a substantial depreciation of the Mexican Peso (MXN) and to prevent capital outflows that could destabilize the country.

12:22 BoE’s Haskel: Persistence of inflation will be influenced by labor market tightness
Bank of England (BoE) policymaker Jonathan Haskel said on Tuesday that the “persistence of inflation will be influenced by labor market tightness.” “UK labor market tightness has been falling rather slowly,” Haskel added.

Bank of England (BoE) policymaker Jonathan Haskel said on Tuesday that the “persistence of inflation will be influenced by labor market tightness.” “UK labor market tightness has been falling rather slowly,” Haskel added. Market reactionGBP/USD defends gains near 1.2360 after the BoE commentary, up 0.10% on the day, as of writing.

12:10 EUR/JPY holds gains after mixed PMI data from Germany and Eurozone, trades above 165.00
EUR/JPY cross extends its winning streak for the third successive session, hovering around 165.20 during the European trading hours on Tuesday.

EUR/JPY received support after the release of moderate German PMI data on Tuesday.ECB Vice President Luis de Guindos announced that the central bank intends to reduce interest rates in June.The Japanese Yen faces obstacles as the BoJ indicated no rush to implement monetary policy measures.EUR/JPY cross extends its winning streak for the third successive session, hovering around 165.20 during the European trading hours on Tuesday. The Euro gains ground on mixed Purchasing Managers Index (PMI) data from Germany and the Eurozone released on Tuesday. In April, the initial Eurozone Manufacturing PMI dipped to 45.6, falling short of expectations for an increase to 46.5 from the previous 46.1. However, the Services PMI exhibited strength, reaching 52.9, surpassing the estimated 51.8 and the prior 51.5. The Composite PMI for April showed improvement with a reading of 51.4, exceeding both the previous 50.3 and the anticipated 50.8. Earlier on Tuesday, the Euro advanced after the release of mixed German PMI data. April's preliminary German Manufacturing PMI rose to 42.2, slightly below the expected 42.8 but up from March's 41.9, marking a two-month high. Services PMI also saw significant improvement, reaching 53.3, surpassing the market's expectation of 50.6 and reaching a fresh ten-month high. The Japanese Yen (JPY) is encountering hurdles stemming from the widening yield gap between Japan and numerous other key nations. This trend prompts traders to borrow JPY and allocate funds to higher-yielding assets abroad. The Bank of Japan (BoJ) signaled that it is taking a cautious approach regarding policy normalization, indicating no rush to implement such measures. Furthermore, according to Reuters, Bank of Japan (BoJ) Governor Kazuo Ueda reiterated on Tuesday that the central bank stands ready to increase interest rates if trend inflation progresses towards its 2% target, aligning with its projections. Ueda also noted the challenge of predicting the optimal timeframe for the BoJ to accumulate adequate data before contemplating a policy adjustment. EUR/JPY Overview Today last price 165.23 Today Daily Change 0.25 Today Daily Change % 0.15 Today daily open 164.98 Trends Daily SMA20 164.12 Daily SMA50 163.17 Daily SMA100 160.81 Daily SMA200 159.74 Levels Previous Daily High 165.1 Previous Daily Low 164.4 Previous Weekly High 165.03 Previous Weekly Low 162.67 Previous Monthly High 165.36 Previous Monthly Low 160.22 Daily Fibonacci 38.2% 164.84 Daily Fibonacci 61.8% 164.67 Daily Pivot Point S1 164.55 Daily Pivot Point S2 164.13 Daily Pivot Point S3 163.85 Daily Pivot Point R1 165.26 Daily Pivot Point R2 165.53 Daily Pivot Point R3 165.96

12:02 GBP/JPY climbs to fresh daily top, beyond mid-191.00s after mixed UK PMIs
GBP/JPY gains some positive traction in reaction to the upbeat UK Services PMI.

GBP/JPY gains some positive traction in reaction to the upbeat UK Services PMI.A positive risk tone undermines the safe-haven JPY and further lends support.Intervention fears might cap the upside for the cross ahead of the BoJ on Friday.The GBP/JPY cross attracts some dip-buying near the 190.85-190.80 region on Tuesday and climbs to a fresh daily peak during the first half of the European session. Spot prices currently trade around the 191.60 area and look to build on the overnight bounce from a one-week low. The British Pound (GBP) gets a goodish lift following the better-than-expected release of the flash UK Services PMI, which rose to 54.9 in April from the previous month's final reading of 53.1. Apart from this, a modest US Dollar (USD) downtick, to a larger extent, overshadows an unexpected contraction in the UK manufacturing sector and turns out to be a key factor acting as a tailwind for the GBP/JPY cross. The Japanese Yen (JPY), on the other hand, continues with its relative underperformance in the wake of the Bank of Japan's (BoJ) cautious approach towards further policy tightening. Furthermore, hopes that the Iran-Israel conflict will not escalate further remain supportive of a generally positive risk tone, which further seems to undermine the safe-haven JPY and lends additional support to the GBP/JPY cross. Traders, meanwhile, remain on alert in the wake of speculations that Japanese authorities will intervene to prop up the domestic currency. This is holding back the JPY bears from placing aggressive bets ahead of the crucial BoJ policy decision on Friday. In the meantime, speculations about more aggressive policy easing by the Bank of England (BoE) might further contribute to capping gains for the GBP/JPY cross. GBP/JPY Overview Today last price 191.75 Today Daily Change 0.52 Today Daily Change % 0.27 Today daily open 191.23 Trends Daily SMA20 191.59 Daily SMA50 190.71 Daily SMA100 187.55 Daily SMA200 185.61 Levels Previous Daily High 191.7 Previous Daily Low 190.32 Previous Weekly High 192.84 Previous Weekly Low 190.3 Previous Monthly High 193.54 Previous Monthly Low 187.96 Daily Fibonacci 38.2% 190.85 Daily Fibonacci 61.8% 191.18 Daily Pivot Point S1 190.47 Daily Pivot Point S2 189.7 Daily Pivot Point S3 189.09 Daily Pivot Point R1 191.85 Daily Pivot Point R2 192.47 Daily Pivot Point R3 193.23

12:01 Silver price today: Silver falls further, according to FXStreet data
Silver prices (XAG/USD) fell on Tuesday, according to FXStreet data.

11:45 EUR/GBP depreciates to near 0.8600 after mixed Eurozone and UK PMI figures
The EUR/GBP cross pared its daily gains, trading lower around 0.8620 in European hours on Tuesday.

EUR/GBP received downward pressure after the mixed UK PMI data released on Tuesday.ECB Vice President Luis de Guindos stated that the central bank plans to lower interest rates in June.UK Services PMI improved to 54.9 in April, against the expected 53.0 and 53.1 prior.The EUR/GBP cross pared its daily gains, trading lower around 0.8620 in European hours on Tuesday. After mixed figures from the United Kingdom (UK) and the Eurozone, the currency cross lost ground. The preliminary S&P Global/CIPS UK Manufacturing PMI declined to 48.7 against the expectations of remaining constant at the reading of 50.3 in April. While Services PMI increased to 54.9 against the expected reading of 53.0 and 53.1 prior. Composite PMI increased to 54.0 from the previous reading of 52.8. In April, the preliminary HCOB Manufacturing PMI fell to 45.6, disappointing against the anticipated improvement to 46.5 from the previous 46.1. However, the Services PMI showed strength, reaching 52.9 compared to the estimated 51.8 and the prior 51.5. The Composite PMI for April exhibited an improved reading of 51.4, surpassing both the previous 50.3 and the expected 50.8. Following the release of mixed German PMI data, the Euro gained ground. April's preliminary German Manufacturing PMI climbed to 42.2, slightly below the expected 42.8 but up from March's 41.9, marking a two-month high. Services PMI also saw a notable improvement, reaching 53.3, surpassing the market's expectation of 50.6 and hitting a fresh ten-month high. The Composite Output Index for April stood at 50.5, exceeding both the expected 48.6 and March's 47.7, also reaching a ten-month high. According to Reuters, European Central Bank (ECB) Vice President Luis de Guindos stated in a newspaper interview that the ECB plans to lower interest rates in June. However, he stressed the necessity of prudence regarding future actions and the importance of considering signals from the US Federal Reserve (Fed). On the United Kingdom’s (UK) side, interest rate futures indicate full pricing for a quarter-point rate cut by the Bank of England in August, with expectations of two rate cuts by the end of the year. This increasing speculation about rate cuts by the BoE is putting downward pressure on the Pound Sterling (GBP). EUR/GBP Overview Today last price 0.8635 Today Daily Change 0.0009 Today Daily Change % 0.10 Today daily open 0.8626 Trends Daily SMA20 0.8566 Daily SMA50 0.8556 Daily SMA100 0.8575 Daily SMA200 0.8607 Levels Previous Daily High 0.8644 Previous Daily Low 0.8608 Previous Weekly High 0.8616 Previous Weekly Low 0.8521 Previous Monthly High 0.8602 Previous Monthly Low 0.8504 Daily Fibonacci 38.2% 0.8631 Daily Fibonacci 61.8% 0.8622 Daily Pivot Point S1 0.8608 Daily Pivot Point S2 0.859 Daily Pivot Point S3 0.8572 Daily Pivot Point R1 0.8644 Daily Pivot Point R2 0.8662 Daily Pivot Point R3 0.8681

11:32 UK Preliminary Services PMI jumps to 54.9 in April vs. 53.0 expected
The seasonally adjusted S&P Global/CIPS UK Manufacturing Purchasing Managers’ Index (PMI) fell sharply from 50.3 in March to 48.7 in April, missing the estimated 50.3 reading.

UK Manufacturing PMI contracted to 48.7 in April, missing estimates of 50.3.Services PMI in the UK rose sharply to 54.9 in April.GBP/USD holds higher ground near 1.2370 after mixed UK business PMIs.The seasonally adjusted S&P Global/CIPS UK Manufacturing Purchasing Managers’ Index (PMI) fell sharply from 50.3 in March to 48.7 in April, missing the estimated 50.3 reading. Meanwhile, the Preliminary UK Services Business Activity Index jumped to 54.9 in April, beating the market consensus of 53.0. The previous figure stood at 53.1. developing story ...

11:30 United Kingdom S&P Global/CIPS Services PMI registered at 54.9 above expectations (53) in April
United Kingdom S&P Global/CIPS Services PMI registered at 54.9 above expectations (53) in April

11:30 United Kingdom S&P Global/CIPS Manufacturing PMI registered at 48.7, below expectations (50.3) in April
United Kingdom S&P Global/CIPS Manufacturing PMI registered at 48.7, below expectations (50.3) in April

11:30 USD/CAD Price Analysis: Remains subdued near 1.3700 as US Dollar slips
The USD/CAD pair remains feeble near the round-level support of 1.3700 in Tuesday’s European session.

USD/CAD struggles to hold the 1.3700 support as the US Dollar edges down.US bond yields consolidate as investors focus on US core PCE Price Index data.BoC’s rate cut prospects remain strong as Canada’s inflation softens significantly in March.The USD/CAD pair remains feeble near the round-level support of 1.3700 in Tuesday’s European session. The Loonie asset comes under pressure as the US Dollar drops amid improvement in the risk appetite of the market participants. S&P 500 futures have posted some gains in the London session. The appeal for risky assets improves as investors see no further escalation in Middle East conflict on an immediate basis. 10-year US Treasury yields consolidate around 4.63% as investors shift focus to the United States core Personal Consumption Expenditure Price Index (PCE) data for March, which will be published on Friday. The US Dollar Index (DXY) edges down to 105.96. The underlying inflation data will significantly influence market expectations to Federal Reserve (Fed) rate cuts, which traders anticipate from the September meeting. The annual core PCE Price Index is forecasted to have softened to 2.6% from 2.8% in February with monthly inflation increasing steadily by 0.3%. Meanwhile, the Canadian Dollar has consistently performed better against the US Dollar since the last trading sessions. The Canadian Dollar could weaken as investors see the Bank of Canada (BoC) starting to reduce interest rates earlier amid easing price pressures. BoC’s preferred inflation measure that excludes eight volatile items softened to 2% in March, allowing policymakers to discuss rate cuts. USD/CAD faced sharp selling pressure last week after a rally stalled near 1.3850. The asset rallied after a breakout of the Ascending Triangle chart pattern formed on a daily timeframe. The 20-day Exponential Moving Average (EMA) near 1.3674 will be a major support area for the US Dollar bulls. The 14-period Relative Strength Index (RSI) returns to the 40.00-60.00 range, which indicates that bullish momentum has concluded for now while the upside bias is still intact. Going forward, a mean-reversion move to near the 20-day EMA around 1.3674 will offer a buying opportunity to market participants. Investors would find resistance near the 22 November 2023, high at 1.3766, followed by the round-level resistance of 1.3800. In an alternate scenario, a breakdown below April 9 low around 1.3547 will expose the asset to the psychological support of 1.3500 and March 21 low around 1.3456. USD/CAD daily chartUSD/CAD Overview Today last price 1.3699 Today Daily Change -0.0002 Today Daily Change % -0.01 Today daily open 1.3701 Trends Daily SMA20 1.3646 Daily SMA50 1.3574 Daily SMA100 1.3496 Daily SMA200 1.3531 Levels Previous Daily High 1.3753 Previous Daily Low 1.3687 Previous Weekly High 1.3846 Previous Weekly Low 1.3724 Previous Monthly High 1.3614 Previous Monthly Low 1.342 Daily Fibonacci 38.2% 1.3712 Daily Fibonacci 61.8% 1.3728 Daily Pivot Point S1 1.3674 Daily Pivot Point S2 1.3647 Daily Pivot Point S3 1.3607 Daily Pivot Point R1 1.374 Daily Pivot Point R2 1.378 Daily Pivot Point R3 1.3807

11:30 United Kingdom S&P Global/CIPS Composite PMI climbed from previous 52.8 to 54 in April
United Kingdom S&P Global/CIPS Composite PMI climbed from previous 52.8 to 54 in April

11:23 Pound Sterling eyes more downside on firm BoE rate cut prospects
The Pound Sterling (GBP) remains vulnerable at around 1.2300 in Monday’s London session.

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}The Pound Sterling drops to near 1.2300 as the BoE is expected to start reducing interest rates from August.The S&P Global/CIPS UK preliminary PMI data for April will provide guidance on the economic outlook.Two BoE policymakers are lined up to speak as investors seek clues about the interest-rate outlook.The Pound Sterling (GBP) remains vulnerable at around 1.2300 in Monday’s London session. The GBP/USD is under pressure as the US Dollar (USD) holds strength on expectations that the US Federal Reserve (Fed) will maintain interest rates at their current levels for longer. United States Consumer Price Index (CPI) has turned out hotter-than-expected in the first three months of the year and the county’s economic outlook is strong, suggesting that current interest rate framework is appropriate. The US Dollar Index (DXY), which tracks the US Dollar’s value against six major currencies, is slightly positive above the crucial support of 106.00. Meanwhile, investors will shift focus to the core Personal Consumption Expenditure Price Index (PCE) data for March, which will be published on Friday. The monthly core PCE Price Index is estimated to grow steadily by 0.3%. Annually, the underlying inflation data is expected to soften to 2.6% from 2.8% in February. On the United Kingdom front, investors await the S&P Global/CIPS preliminary PMI data for April, which will be published at 08:30 GMT. The Manufacturing PMI is expected to expand steadily by 50.3. The Services PMI is estimated to have declined slightly to 53.0 from 53.1. Daily digest market movers: Pound Sterling edges down while US Dollar exhibits strength The Pound Sterling refreshes a five-month low near the round-level support of 1.2300 as investors see the Bank of England (BoE) pivoting to interest rate cuts sooner than the Fed. Last week, BoE Deputy Governor Dave Ramsden said that United Kingdom inflation will decline faster than expected and will return to the 2% target in May. Dave Ramsden said: “Over the last few months, I have become more confident in the evidence that risks to persistence in domestic inflation pressures are receding, helped by improved inflation dynamics," Reuters reported. He added that inflation might prove weaker than BoE’s latest projections. Ramsden’s soft guidance on the inflation outlook has prompted expectations that the BoE will start reducing interest rates earlier than previously expected. LSEG's (BOEWATCH) now prices 28 basis points (bps) of rate cuts in August and 56 bps in December versus 22 bps and 51 bps, respectively, at Friday's close, Reuters reported. Market expectations for the BoE’s May policy meeting will be guided by commentaries from policymakers, as inflation data for the same month will be released after the interest rate decision. In Tuesday’s session, the speeches from BoE policymakers Jonathan Haskel and Huw Pill will be in focus. In March’s monetary policy meeting, Haskel, who remained a hawk, surprisingly voted for keeping interest rates unchanged at 5.25%. In early April, Haskel commented that rate cuts should be "a long way off." He added that the decline in the headline inflation is good news but the BoE cares more about the persistent and theerlying inflation, the Financial Times reported. High inflation in the UK economy has been majorly driven by persistent inflation in the service sector, which is fuelled by strong wage growth. In March, the annual Service inflation decelerated slightly to 6.0% from 6.1%. Technical Analysis: Pound Sterling trades close to five-month low near 1.2300The Pound Sterling printed a fresh five-month low near 1.2300 on Monday. The GBP/USD pair extends its losing spell for fourth trading session on Tuesday as a breakdown of the Head and Shoulder chart pattern formed on a daily timeframe has weakened the near-term outlook. Declining 20-day and 50-day Exponential Moving Averages (EMAs) at 1.2525 and 1.2600, respectively, indicate that the long-term outlook is bearish. The 14-period Relative Strength Index (RSI) oscillates in the range of 20.00-40.00, indicating a strong bearish momentum. Pound Sterling FAQs What is the Pound Sterling? The Pound Sterling (GBP) is the oldest currency in the world (886 AD) and the official currency of the United Kingdom. It is the fourth most traded unit for foreign exchange (FX) in the world, accounting for 12% of all transactions, averaging $630 billion a day, according to 2022 data. Its key trading pairs are GBP/USD, aka ‘Cable’, which accounts for 11% of FX, GBP/JPY, or the ‘Dragon’ as it is known by traders (3%), and EUR/GBP (2%). The Pound Sterling is issued by the Bank of England (BoE). How do the decisions of the Bank of England impact on the Pound Sterling? The single most important factor influencing the value of the Pound Sterling is monetary policy decided by the Bank of England. The BoE bases its decisions on whether it has achieved its primary goal of “price stability” – a steady inflation rate of around 2%. Its primary tool for achieving this is the adjustment of interest rates. When inflation is too high, the BoE will try to rein it in by raising interest rates, making it more expensive for people and businesses to access credit. This is generally positive for GBP, as higher interest rates make the UK a more attractive place for global investors to park their money. When inflation falls too low it is a sign economic growth is slowing. In this scenario, the BoE will consider lowering interest rates to cheapen credit so businesses will borrow more to invest in growth-generating projects. How does economic data influence the value of the Pound? Data releases gauge the health of the economy and can impact the value of the Pound Sterling. Indicators such as GDP, Manufacturing and Services PMIs, and employment can all influence the direction of the GBP. A strong economy is good for Sterling. Not only does it attract more foreign investment but it may encourage the BoE to put up interest rates, which will directly strengthen GBP. Otherwise, if economic data is weak, the Pound Sterling is likely to fall. How does the Trade Balance impact the Pound? Another significant data release for the Pound Sterling is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period. If a country produces highly sought-after exports, its currency will benefit purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.

11:11 India Gold price today: Gold falls, according to MCX data
Gold prices fell in India on Tuesday, according to data from India's Multi Commodity Exchange (MCX).

11:02 Eurozone Preliminary Manufacturing PMI drops to 45.6 in April vs. 46.5 expected
The Eurozone manufacturing sector activity contraction unexpectedly deepened while the services sector continued to expand in April, according to the data from the HCOB's latest purchasing managers index survey released on Tuesday.

Eurozone Manufacturing PMI fell to 45.6 in April, missing 46.5 consensus.Bloc’s Services PMI climbed to 52.9 in April vs. 51.8 forecast.EUR/USD eases from near 1.0700 after German, Eurozone PMI data.The Eurozone manufacturing sector activity contraction unexpectedly deepened while the services sector continued to expand in April, according to the data from the HCOB's latest purchasing managers index survey released on Tuesday. more to come ...

11:00 Eurozone HCOB Services PMI came in at 52.9, above expectations (51.8) in April
Eurozone HCOB Services PMI came in at 52.9, above expectations (51.8) in April

11:00 Eurozone HCOB Composite PMI registered at 51.4 above expectations (50.8) in April
Eurozone HCOB Composite PMI registered at 51.4 above expectations (50.8) in April

11:00 Eurozone HCOB Manufacturing PMI registered at 45.6, below expectations (46.5) in April
Eurozone HCOB Manufacturing PMI registered at 45.6, below expectations (46.5) in April

11:00 US S&P Global PMIs Preview: Economic expansion set to keep momentum in April
S&P Global will release the flash estimates of the United States (US) Purchasing Managers Indexes (PMIs) for April on Tuesday, a survey that measures business activity throughout the month.

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50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}S&P Global PMIs are expected to indicate business activity in the US continued to expand in April.Manufacturing and Services output are seen advancing at a moderate pace. EUR/USD holds above 1.0600, near-term bearish bias remains intact. S&P Global will release the flash estimates of the United States (US) Purchasing Managers Indexes (PMIs) for April on Tuesday, a survey that measures business activity throughout the month. The report is divided into services and manufacturing output and compiled in a final figure, the Composite PMI. The economic activity in the US private sector expanded at a moderating pace in March, with the S&P Global Composite PMI edging lower to 52.1 from 52.5 in February. The Services PMI declined to 51.7 from 52.3 in this period, while the Manufacturing PMI fell to 51.9 from 52.2.
Commenting on the survey's findings, “further expansions of both manufacturing and service sector output in March helped close off the US economy’s strongest quarter since the second quarter of last year," said Chris Williamson, Chief Business Economist at S&P Global Market Intelligence. "The survey data point to another quarter of robust GDP growth accompanied by sustained hiring as companies continue to report new order growth," Williamson added. “A steepening rise in costs, combined with strengthened pricing power amid the recent upturn in demand, meant inflationary pressures gathered pace again in March." What to expect from the next S&P Global PMI report? S&P Global Manufacturing PMI and Services PMI are both expected to come in at 52 in April’s flash estimate, highlighting an ongoing expansion in the private sector’s economic activity. Any reading above 50 signals economic activity is growing, while an indicator below this threshold suggests contraction. Since the beginning of the year, the two main highlights of the US economy have been robust activity and stubborn inflation. Hence, market participants have shifted their expectations toward an extended delay in the Federal Reserve’s (Fed) policy pivot towards rate cuts. Earlier in the year, investors were forecasting the Fed to lower the policy rate as early as March. Employment, activity and inflation data in the first quarter of 2024 largely surprised to the upside and caused investors to reassess the US central bank’s policy outlook. According to the CME FedWatch Tool, markets currently price in a 65% probability that the Fed will lower the policy rate in September. Flash PMI data for April are expected to confirm that the US economy preserved its strength to start the second quarter. Comments regarding the input costs could also point to ongoing inflationary pressures. When will April flash US S&P Global PMIs be released and how could they affect EUR/USD? The S&P Global PMI report will be released on Tuesday at 13:45 GMT. Ahead of the event, the US Dollar (USD) stays resilient against its rivals. The USD Index (DXY), which tracks the USD’s performance against a basket of six major currencies, seems to have entered into a consolidation phase after setting a five-month high above 106.00 in the previous week, boosted by hawkish Fed commentary and risk aversion. Unless either the Manufacturing or the Services PMI unexpectedly drops below 50 and shows a contraction in the sector’s activity, the USD could hold its ground. If the publication highlights a downturn in private sector’s employment, or a softening in input costs, the USD could come under selling pressure even if headline PMIs hold above 50. Eren Sengezer, European Session Lead Analyst at FXStreet, shares a brief outlook for EUR/USD: “The Relative Strength Index (RSI) indicator on the daily chart stays below 40, suggesting that EUR/USD has more room on the downside before it turns technically oversold.” “On the upside, 1.0700 (static level) aligns as interim resistance before 1.0750, where the 20-day Simple Moving Average (SMA) is located. A daily close above this level could attract technical buyers and open the door for an extended recovery toward the 200-day SMA at 1.0820. On the other hand, supports are located at 1.0600 (static level), 1.0500 (psychological level, static level) and 1.0450 (October 3 low).” Economic Indicator S&P Global Composite PMI The S&P Global Composite Purchasing Managers Index (PMI), released on a monthly basis, is a leading indicator gauging US private-business activity in the manufacturing and services sector. The data is derived from surveys to senior executives. Each response is weighted according to the size of the company and its contribution to total manufacturing or services output accounted for by the sub-sector to which that company belongs. Survey responses reflect the change, if any, in the current month compared to the previous month and can anticipate changing trends in official data series such as Gross Domestic Product (GDP), industrial production, employment and inflation. The index varies between 0 and 100, with levels of 50.0 signaling no change over the previous month. A reading above 50 indicates that the private economy is generally expanding, a bullish sign for the US Dollar (USD). Meanwhile, a reading below 50 signals that activity is generally declining, which is seen as bearish for USD. Read more. Last release: Wed Apr 03, 2024 13:45 Frequency: MonthlyActual: 52.1Consensus: -Previous: 52.2Source: S&P Global US Dollar FAQs What is the US Dollar? The US Dollar (USD) is the official currency of the United States of America, and the ‘de facto’ currency of a significant number of other countries where it is found in circulation alongside local notes. It is the most heavily traded currency in the world, accounting for over 88% of all global foreign exchange turnover, or an average of $6.6 trillion in transactions per day, according to data from 2022. Following the second world war, the USD took over from the British Pound as the world’s reserve currency. For most of its history, the US Dollar was backed by Gold, until the Bretton Woods Agreement in 1971 when the Gold Standard went away. How do the decisions of the Federal Reserve impact the US Dollar? The most important single factor impacting on the value of the US Dollar is monetary policy, which is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability (control inflation) and foster full employment. Its primary tool to achieve these two goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Fed’s 2% target, the Fed will raise rates, which helps the USD value. When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates, which weighs on the Greenback. What is Quantitative Easing and how does it influence the US Dollar? In extreme situations, the Federal Reserve can also print more Dollars and enact quantitative easing (QE). QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is a non-standard policy measure used when credit has dried up because banks will not lend to each other (out of the fear of counterparty default). It is a last resort when simply lowering interest rates is unlikely to achieve the necessary result. It was the Fed’s weapon of choice to combat the credit crunch that occurred during the Great Financial Crisis in 2008. It involves the Fed printing more Dollars and using them to buy US government bonds predominantly from financial institutions. QE usually leads to a weaker US Dollar. What is Quantitative Tightening and how does it influence the US Dollar? Quantitative tightening (QT) is the reverse process whereby the Federal Reserve stops buying bonds from financial institutions and does not reinvest the principal from the bonds it holds maturing in new purchases. It is usually positive for the US Dollar.

10:41 ECB's de Guindos: Barring any surprises, June rate cut is a 'fait accompli'
European Central Bank (ECB) Vice President Luis de Guindos said on Tuesday that “barring any surprises, the June rate cut is a 'fait accompli'.” Additional quotes But have to be very cautious about what comes afterwards.

10:32 German Preliminary Manufacturing PMI rises to 42.2 in April vs. 42.8 expected
Germany’s manufacturing sector witnessed some improvement in the contraction in April while the services sector outperformed, the preliminary business activity report published by the HCOB survey showed Tuesday.

Germany’s Manufacturing PMI rose to 42.2 in April vs. 42.8 forecast.Services PMI for the German economy advanced to 53.3 in April vs. 50.6 estimate.EUR/USD jumps toward 1.0700 after mixed German PMIs.Germany’s manufacturing sector witnessed some improvement in the contraction in April while the services sector outperformed, the preliminary business activity report published by the HCOB survey showed Tuesday. The HCOB Manufacturing PMI in the Eurozone’s economic powerhouse rose to 42.2 this month, compared with the 42.8 estimate and March’s 41.9. The index hit the highest level in two months.

10:30 Forex Today: Major pairs stabilize ahead of key PMI data
Here is what you need to know on Tuesday, April 23: Major currency pair fluctuate in relatively tight channels early Tuesday as investors await key data releases.

10:30 Germany HCOB Services PMI registered at 53.3 above expectations (50.6) in April
Germany HCOB Services PMI registered at 53.3 above expectations (50.6) in April

10:30 Germany HCOB Manufacturing PMI came in at 42.2, below expectations (42.8) in April
Germany HCOB Manufacturing PMI came in at 42.2, below expectations (42.8) in April

10:30 Germany HCOB Composite PMI above forecasts (48.6) in April: Actual (50.5)
Germany HCOB Composite PMI above forecasts (48.6) in April: Actual (50.5)

10:25 EUR/USD extends holding pattern ahead of PMIs
EUR/USD extends its holding pattern of the last few days, trading in the mid 1.0600s on Tuesday, prior to the release of potentially market-moving purchasing manager survey data.

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}EUR/USD trades in a range in the mid 1.0600s ahead of key PMI data for the US and Eurozone. The pair has formed a Bear Flag price pattern suggesting the potential for a steep decline. EUR/USD extends its holding pattern of the last few days, trading in the mid 1.0600s on Tuesday, prior to the release of potentially market-moving purchasing manager survey data. Preliminary Purchasing Manager Indexes (PMI) for April in both the United States and Europe are scheduled for release later in the day and could impact the exchange rate. EUR/USD: Traders await Purchasing Manager data EUR/USD could potentially experience volatility after the release of HCOB PMIs for the Eurozone followed by S&P Global PMIs for America, during the US session. The HCOB Composite PMI for the Eurozone is forecast to rise to 50.8 from 50.3 in March, the HCOB Manufacturing PMI to 46.5 from 46.1 and the HCOB Services PMI to 51.8 from 51.5. The S&P Global Manufacturing PMI for the US in April is forecast to rise to 52.0 from 51.9 and Services to 52.0 from 51.7. A PMI figure above 50 is indicative of growth in the sector; below 50 contraction. If any of the data show higher-than-expected readings, they could benefit the respective currencies and vice versa for lower-than-forecast results. Of particular interest to currency traders will be Services PMIs since sticky inflation in the sector has been a major contributor to inflation, especially in the US. Continued high inflation in the US is viewed as likely to keep interest rates relatively elevated in the United States compared to Europe. The expectation of higher borrowing costs for longer in the US has been bolstering the US Dollar (USD) since higher interest rates attract greater capital inflows. In addition, later in the day, the US will also see the release of New Home Sales data for March and the Richmond Fed Manufacturing Index for April. Technical Analysis: EUR/USD forms a Bear FlagEUR/USD is trading in a rectangular range at roughly the same level as the 100-week Simple Moving Average (SMA). Taken together with the steep decline that preceded the rectangle, the whole formation resembles a Bear Flag price pattern, which has bearish connotations. EUR/USD 4-hour ChartA break below the 1.0601 April 16 low would signal a probable activation of the Bear Flag and the start of a decline. According to technical lore, the expected move out of a Bear Flag usually equals the length of the “pole” or steep decline preceding the box-like formation of the flag square, or a Fibonacci ratio of the pole. The Fibonacci 0.618 ratio of the pole extrapolated lower provides the most reliable conservative target. This gives a price objective at 1.0503. After that, the next concrete target is at 1.0446 – the October 2023 low. A fall of equal length to the pole would take EUR/USD down to 1.0403. The Relative Strength Index (RSI) has exited oversold conditions, indicating renewed potential for more downside. For bulls, resistance at around 1.0700 will need to be overcome to have any hope of recovery. After that, the April 2 swing low at 1.0725 provides the next upside target, followed by 1.0800, where a cluster of major Moving Averages coils. Euro FAQs What is the Euro? The Euro is the currency for the 20 European Union countries that belong to the Eurozone. It is the second most heavily traded currency in the world behind the US Dollar. In 2022, it accounted for 31% of all foreign exchange transactions, with an average daily turnover of over $2.2 trillion a day. EUR/USD is the most heavily traded currency pair in the world, accounting for an estimated 30% off all transactions, followed by EUR/JPY (4%), EUR/GBP (3%) and EUR/AUD (2%). What is the ECB and how does it impact the Euro? The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy. The ECB’s primary mandate is to maintain price stability, which means either controlling inflation or stimulating growth. Its primary tool is the raising or lowering of interest rates. Relatively high interest rates – or the expectation of higher rates – will usually benefit the Euro and vice versa. The ECB Governing Council makes monetary policy decisions at meetings held eight times a year. Decisions are made by heads of the Eurozone national banks and six permanent members, including the President of the ECB, Christine Lagarde. How does inflation data impact the value of the Euro? Eurozone inflation data, measured by the Harmonized Index of Consumer Prices (HICP), is an important econometric for the Euro. If inflation rises more than expected, especially if above the ECB’s 2% target, it obliges the ECB to raise interest rates to bring it back under control. Relatively high interest rates compared to its counterparts will usually benefit the Euro, as it makes the region more attractive as a place for global investors to park their money. How does economic data influence the value of the Euro? Data releases gauge the health of the economy and can impact on the Euro. Indicators such as GDP, Manufacturing and Services PMIs, employment, and consumer sentiment surveys can all influence the direction of the single currency. A strong economy is good for the Euro. Not only does it attract more foreign investment but it may encourage the ECB to put up interest rates, which will directly strengthen the Euro. Otherwise, if economic data is weak, the Euro is likely to fall. Economic data for the four largest economies in the euro area (Germany, France, Italy and Spain) are especially significant, as they account for 75% of the Eurozone’s economy. How does the Trade Balance impact the Euro? Another significant data release for the Euro is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period. If a country produces highly sought after exports then its currency will gain in value purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.

10:16 USD/CHF holds positive ground above 0.9100, eyes on US PMI data
The USD/CHF pair trades on a stronger note for the second consecutive day around 0.9125 during the early European session on Tuesday.

USD/CHF gains ground near 0.9125 on the risk-on mood in Tuesday’s early European session. The hawkish comments from the Fed lift the Greenback and create a tailwind for USD/CHF. The ongoing geopolitical tensions in the Middle East might boost safe-haven assets like the Swiss Franc. The USD/CHF pair trades on a stronger note for the second consecutive day around 0.9125 during the early European session on Tuesday. The risk-on environment amid easing fears of wider tensions in the Middle East provides some support to the US Dollar (USD). Investors await the US preliminary S&P Global Purchasing Managers Index (PMI) data for April on Tuesday for fresh impetus.

The Fed Bank of Chicago revealed on Monday that the National Activity Index improved to 0.15 in March from 0.09 in the previous reading. However, the data had little to no impact on the Greenback after the release. The hawkish remarks from US Federal Reserve (Fed) policymakers triggered the expectation that the US central bank would delay the rate cut, which boosts the USD against the Swiss Franc (CHF).

The US preliminary Gross Domestic Product Annualized for the first quarter (Q1) and March’s Personal Consumption Expenditures Price Index (PCE) later this week will be closely watched events and might offer some hints about the possibility of policy easing by the Fed. In case the reports show upbeat data, this could boost the USD and cap the pair’s upside.

On the other hand, the ongoing geopolitical tensions in the Middle East might boost safe-haven flows, benefiting the CHF. Apart from this, the Swiss ZEW Survey for April will be released on Wednesday. On Friday, Swiss National Bank (SNB) Chairman Jordan's speech will be in the spotlight. USD/CHF Overview Today last price 0.9128 Today Daily Change 0.0008 Today Daily Change % 0.09 Today daily open 0.912 Trends Daily SMA20 0.9073 Daily SMA50 0.8931 Daily SMA100 0.8776 Daily SMA200 0.8837 Levels Previous Daily High 0.9124 Previous Daily Low 0.9098 Previous Weekly High 0.9152 Previous Weekly Low 0.9012 Previous Monthly High 0.9072 Previous Monthly Low 0.873 Daily Fibonacci 38.2% 0.9114 Daily Fibonacci 61.8% 0.9108 Daily Pivot Point S1 0.9104 Daily Pivot Point S2 0.9088 Daily Pivot Point S3 0.9077 Daily Pivot Point R1 0.913 Daily Pivot Point R2 0.914 Daily Pivot Point R3 0.9157

10:15 France HCOB Manufacturing PMI registered at 44.9, below expectations (46.9) in April
France HCOB Manufacturing PMI registered at 44.9, below expectations (46.9) in April

10:15 France HCOB Services PMI came in at 50.5, above expectations (48.9) in April
France HCOB Services PMI came in at 50.5, above expectations (48.9) in April

10:15 France HCOB Composite PMI rose from previous 48.3 to 49.9 in April
France HCOB Composite PMI rose from previous 48.3 to 49.9 in April

09:09 Silver Price Forecast: XAG/USD attracts some sellers below $27.00 amid risk-on mood
Silver price (XAG/USD) trades on a softer note for the second consecutive day around $26.95 on Tuesday during the early European session.

Silver price extends its downside near $26.95 on Tuesday. The easing fear of wider tensions in the Middle East improves market sentiment.Reduced Fed rate cut speculation boosts the USD and drags the white metal lower. Silver price (XAG/USD) trades on a softer note for the second consecutive day around $26.95 on Tuesday during the early European session. The easing fear of wider Middle East tensions improves market sentiment and creates a headwind for the precious metal. Traders prefer to wait on the sidelines ahead of the US preliminary S&P Global Purchasing Managers Index (PMI) data for April, due later on Tuesday.

The silver price drifts sharply lower to nearly three-week lows as concerns about a potential broader conflict in the Middle East fade, leading traders to reduce their precious metal positions and favour riskier assets. Iranian Foreign Minister Hossein Amirabdollahian stated on Friday that Iran does not plan to respond to Israel’s retaliatory strike, while Israeli authorities remained mostly silent. The absence of public statements afterward tends to imply that both sides are attempting to ease tensions.

Additionally, the lower expectation for interest rate cuts from the US Federal Reserve (Fed) amid the robust. US economic data and hawkish stances from policymakers provide some support to the US Dollar (USD) and weigh on the US Dollar-denominated silver. New York Fed President John Williams noted that he doesn't feel urgency to cut interest rates, given the strength of the economy. Meanwhile, Chicago Fed President Austan Goolsbee stated that the Fed's current restrictive monetary policy is appropriate due to the robust US economic data.

It’s worth noting that the higher-for-longer US rate narrative might dampen demand for white metal, a non-interest-bearing asset. The chance of a June cut has fallen to 15%, and the odds of a July cut have dropped below 45%. A September cut is not fully priced in, with the probability falling below 70%, according to the CME FedWatch Tool. XAG/USD Overview Today last price 26.96 Today Daily Change -0.24 Today Daily Change % -0.88 Today daily open 27.2 Trends Daily SMA20 27.06 Daily SMA50 25.03 Daily SMA100 24.15 Daily SMA200 23.73 Levels Previous Daily High 28.69 Previous Daily Low 27.11 Previous Weekly High 29.02 Previous Weekly Low 27.62 Previous Monthly High 25.77 Previous Monthly Low 22.51 Daily Fibonacci 38.2% 27.71 Daily Fibonacci 61.8% 28.09 Daily Pivot Point S1 26.64 Daily Pivot Point S2 26.09 Daily Pivot Point S3 25.06 Daily Pivot Point R1 28.22 Daily Pivot Point R2 29.24 Daily Pivot Point R3 29.8

09:00 United Kingdom Public Sector Net Borrowing came in at £11.015B, above forecasts (£-8.9B) in March
United Kingdom Public Sector Net Borrowing came in at £11.015B, above forecasts (£-8.9B) in March

08:48 EUR/USD Price Analysis: Tests the major level of 1.0650; followed by the nine-day EMA
EUR/USD remains lackluster during the Asian trading hours on Tuesday, hovering near 1.0650.

EUR/USD remains tepid around the major level amid a bearish sentiment.A breach below the 1.0600 level may lead the pair toward November’s low at 1.0517.The nine-day EMA at 1.0675 appears as the immediate barrier.EUR/USD remains lackluster during the Asian trading hours on Tuesday, hovering near 1.0650. From a technical perspective, analysis suggests a bearish sentiment for the pair as it struggles below the pullback resistance at the 1.0695 level. The 14-day Relative Strength Index (RSI) also remains below the 50 mark. Moreover, the lagging indicator, Moving Average Convergence Divergence (MACD), indicates weakness for the EUR/USD pair as it resides below the centerline and the signal line. Key support for the pair could be found around the psychological level of 1.0600. A breach below this level may exert downward pressure on the pair, leading it towards the region around the major support level of 1.0550, followed by November’s low at 1.0517. On the upside, the immediate barrier for the EUR/USD pair could be the nine-day Exponential Moving Average (EMA) at 1.0675. A breakthrough above this level could lead the pair to reach the 1.0695 level, aligning with the 23.6% Fibonacci retracement level drawn between 1.0981 and 1.0606. Further resistance aligns with the psychological level of 1.0700. A breakthrough above this region could potentially strengthen the recovery sentiment for the pair. EUR/USD: Daily ChartEUR/USD Overview Today last price 1.0652 Today Daily Change -0.0003 Today Daily Change % -0.03 Today daily open 1.0655 Trends Daily SMA20 1.0748 Daily SMA50 1.0808 Daily SMA100 1.0851 Daily SMA200 1.0815 Levels Previous Daily High 1.0671 Previous Daily Low 1.0624 Previous Weekly High 1.069 Previous Weekly Low 1.0601 Previous Monthly High 1.0981 Previous Monthly Low 1.0768 Daily Fibonacci 38.2% 1.0642 Daily Fibonacci 61.8% 1.0653 Daily Pivot Point S1 1.0629 Daily Pivot Point S2 1.0603 Daily Pivot Point S3 1.0582 Daily Pivot Point R1 1.0676 Daily Pivot Point R2 1.0697 Daily Pivot Point R3 1.0722

08:46 BoJ: Japan's Inflation trend gauge rises at slowest pace in 11 months in March
Japan's Weighted Median Inflation Index, a key measure of the country’s trend inflation, rose at its slowest pace in 11 months to 1.3% in March, the latest data published by the Bank of Japan (BoJ) showed on Tuesday.

Japan's Weighted Median Inflation Index, a key measure of the country’s trend inflation, rose at its slowest pace in 11 months to 1.3% in March, the latest data published by the Bank of Japan (BoJ) showed on Tuesday. The rise in the weighted median inflation rate followed a 1.4% increase in February, the BoJ data showed.

08:15 FX option expiries for Apr 23 NY cut
FX option expiries for Apr 23 NY cut at 10:00 Eastern Time, via DTCC, can be found below - EUR/USD: EUR amounts 1.0600 979m 1.0650 1.2b - USD/JPY: USD amounts 150.00 935m 153.00 1.3b 155.00 770m - AUD/USD: AUD amounts 0.6420 1.6b 0.6630 1.4b - USD/CAD: USD amounts 1.3500 505m 1.3775 330m - NZD/USD: NZD amounts 0.5900 341m 0.6100 311m .

FX option expiries for Apr 23 NY cut at 10:00 Eastern Time, via DTCC, can be found below - EUR/USD: EUR amounts 1.0600 979m 1.0650 1.2b - USD/JPY: USD amounts 150.00 935m 153.00 1.3b 155.00 770m - AUD/USD: AUD amounts 0.6420 1.6b 0.6630 1.4b - USD/CAD: USD amounts 1.3500 505m 1.3775 330m - NZD/USD: NZD amounts 0.5900 341m 0.6100 311m

08:02 India HSBC Manufacturing PMI unchanged at 59.1 in April
India HSBC Manufacturing PMI unchanged at 59.1 in April

08:01 India HSBC Services PMI climbed from previous 61.2 to 61.7 in April
India HSBC Services PMI climbed from previous 61.2 to 61.7 in April

08:01 India HSBC Composite PMI up to 62.2 in April from previous 61.8
India HSBC Composite PMI up to 62.2 in April from previous 61.8

08:00 Singapore Consumer Price Index (YoY) came in at 2.7, below expectations (3.1) in March
Singapore Consumer Price Index (YoY) came in at 2.7, below expectations (3.1) in March

07:34 NZD/USD remains above 0.5900 amid hawkish Fed, Kiwi Trade Balance, US PMI eyed
The NZD/USD pair moves slightly lower to near 0.5920 during the Asian session on Tuesday.

NZD/USD remains firmer, possibly reflecting an improved risk appetite following the easing tensions between Israel and Iran.The hawkish sentiment surrounding the Fed’s rates trajectory in June could bolster the US Dollar.China Securities Journal suggested that the PBoC might lower the MLF rate to decrease funding costs.The NZD/USD pair moves slightly lower to near 0.5920 during the Asian session on Tuesday. The New Zealand Dollar (NZD) found support from an improved risk appetite, bolstering the NZD/USD pair. This positive shift follows reduced geopolitical tensions in the Middle East, as highlighted by an Iranian official's recent statement indicating no immediate plans for retaliation against Israeli airstrikes, as reported by Reuters. However, the upside potential for the NZD/USD pair appears to be capped due to a hawkish sentiment surrounding the Federal Reserve's (Fed) interest rate outlook for June. According to the CME FedWatch Tool, the probability of interest rates remaining unchanged in the June meeting has increased to 84.4%, up from the previous week's 78.7%. Furthermore, comments from Federal Reserve officials suggest a more hawkish stance regarding the trajectory of interest rates in June, potentially strengthening the US Dollar (USD). According to a Bloomberg report, Chicago Fed President Austan Goolsbee stated on Friday that progress on inflation had "stalled," and the Federal Reserve's current restrictive monetary policy is suitable. Additionally, Reuters reported that Atlanta Fed President Raphael Bostic indicated that the US central bank would abstain from cutting interest rates until the end of the year. On Tuesday, the China Securities Journal suggested the possibility of the People's Bank of China (PBoC) lowering the Medium-term Lending Facility (MLF) rate on May 15 to reduce funding costs. Given the strong trade relationship between China and New Zealand, such a move could potentially impact New Zealand's market and consequently affect the Kiwi Dollar. Market participants will likely monitor New Zealand's monthly Trade Balance NZD data for March on Wednesday, followed by ANZ-Roy Morgan Consumer Confidence on Friday. In the United States (US), attention will be on the S&P Global Purchasing Managers Index (PMI) on Tuesday, with expectations of improvements in both the manufacturing and services sectors for April. NZD/USD Overview Today last price 0.592 Today Daily Change 0.0001 Today Daily Change % 0.02 Today daily open 0.5919 Trends Daily SMA20 0.5968 Daily SMA50 0.6058 Daily SMA100 0.6121 Daily SMA200 0.6053 Levels Previous Daily High 0.593 Previous Daily Low 0.5886 Previous Weekly High 0.5954 Previous Weekly Low 0.5851 Previous Monthly High 0.6218 Previous Monthly Low 0.5956 Daily Fibonacci 38.2% 0.5913 Daily Fibonacci 61.8% 0.5903 Daily Pivot Point S1 0.5894 Daily Pivot Point S2 0.5868 Daily Pivot Point S3 0.585 Daily Pivot Point R1 0.5938 Daily Pivot Point R2 0.5956 Daily Pivot Point R3 0.5982

07:24 GBP/USD Price Analysis: Flat lines around mid-1.2300s, bearish potential seems intact
GBP/USD holds steady on Tuesday amid subdued USD demand, albeit lacks bullish conviction.

GBP/USD holds steady on Tuesday amid subdued USD demand, albeit lacks bullish conviction.The divergent Fed-BoE policy expectations turn out to be a key factor acting as a headwind.The technical setup suggests that the path of least resistance for the pair is to the downside.The GBP/USD pair struggles to capitalize on the overnight bounce from the 1.2300 mark, or its lowest level since November 14 and oscillates in a narrow band during the Asian session on Tuesday. Spot prices currently trade around mid-1.2300s, nearly unchanged for the day, and remain at the mercy of the US Dollar (USD) price dynamics. Receding fears about a wider Middle East conflict remain supportive of a generally positive risk tone, which is seen undermining the safe-haven buck and lending some support to the GBP/USD pair. That said, growing acceptance that the Federal Reserve (Fed) will keep interest rates higher for longer amid sticky inflation continues to act as a tailwind for the Greenback. Apart from this, speculations about more aggressive policy easing by the Bank of England (BoE) further contribute to capping the upside for the pair. From a technical perspective, the recent breakdown through the 1.2540-1.2535 horizontal support and descending trend-channel support near the 1.2400 mark was seen as a fresh trigger for bearish traders. That said, the Relative Strength Index (RSI) on the daily chart is flashing oversold conditions. This makes it prudent to wait for some consolidation or a modest recovery before positioning for further losses. Nevertheless, the GBP/USD pair seems vulnerable to extending the downtrend from the YTD peak touched in March. In the meantime, any meaningful recovery is likely to confront stiff resistance near the 1.2400 support breakpoint, which if cleared might trigger a short-covering rally and lift spot prices to the 1.2465-1.2470 region. The momentum could get extended further, though is more likely to remain capped near the 1.2500 psychological mark. The latter should act as a key pivotal point, above which the GBP/USD pair could surpass the 1.2535-1.2540 support-turned-resistance and aim to reclaim the 1.2600 round figure. On the flip side, the overnight swing low, around the 1.2300 mark, now seems to protect the immediate downside. Some follow-through selling will reaffirm the negative bias and drag the GBP/USD pair to the next relevant support near the 1.2245 region en route to the 1.2200 round figure and the 1.2135 zone. GBP/USD daily chartGBP/USD Overview Today last price 1.2354 Today Daily Change 0.0004 Today Daily Change % 0.03 Today daily open 1.235 Trends Daily SMA20 1.2547 Daily SMA50 1.2632 Daily SMA100 1.2654 Daily SMA200 1.2566 Levels Previous Daily High 1.2392 Previous Daily Low 1.23 Previous Weekly High 1.2499 Previous Weekly Low 1.2367 Previous Monthly High 1.2894 Previous Monthly Low 1.2575 Daily Fibonacci 38.2% 1.2335 Daily Fibonacci 61.8% 1.2357 Daily Pivot Point S1 1.2302 Daily Pivot Point S2 1.2255 Daily Pivot Point S3 1.221 Daily Pivot Point R1 1.2395 Daily Pivot Point R2 1.244 Daily Pivot Point R3 1.2488

06:55 Gold price drops to over two-week low, flirts with $2,300 amid easing Middle East worries
Gold price (XAU/USD) plunged over 2% on Monday and registered its biggest daily loss since June 13, 2022, amid receding fears about a wider Middle East conflict, which dented demand for traditional safe-haven assets.

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Reduced Fed rate cut bets continue to underpin the USD and contribute to the downfall.The fundamental backdrop warrants some caution before placing aggressive bearish bets.Gold price (XAU/USD) plunged over 2% on Monday and registered its biggest daily loss since June 13, 2022, amid receding fears about a wider Middle East conflict, which dented demand for traditional safe-haven assets. Apart from this, reduced bets for interest rate cuts by the Federal Reserve (Fed) drag the non-yielding yellow metal to sub-$2,300 levels, or over a two-week low during the Asian session on Tuesday. With the latest leg down, the Gold price has corrected over 5% from the all-time peak touched earlier this month. Any further decline, however, seems limited in the wake of speculation that major central banks will cut interest rates this year. Traders might also refrain from placing aggressive bets and prefer to wait on the sidelines ahead of this week's key US macro releases, starting with the flash PMIs on Tuesday. The focus, meanwhile, remains glued to the Advance US Q1 GDP report and the Personal Consumption Expenditures (PCE) Price Index, scheduled for Thursday and Friday, respectively. The crucial data will play a key role in influencing expectations about the Fed's future policy decisions and drive the US Dollar (USD) demand, which, in turn, should provide some meaningful impetus to the Gold price. Daily Digest Market Movers: Gold price is weighed down by easing fears of a wider conflict in the Middle East Iran signaled that it has no plans to retaliate against the Israeli limited-scale missile strike on Friday, which, in turn, drives flows away from the safe-haven Gold price for the second straight day on Tuesday. Stronger-than-expected US payrolls data, along with the hotter consumer price inflation and hawkish comments from Federal Reserve officials, forced investors to scale back their bets for US interest rate cuts. The current market pricing suggests that the Fed could start its rate-cutting cycle in September and deliver only 34 basis points, or less than two rate cuts in 2024 as compared to three projected by the central bank. The yield on the benchmark 10-year US government bond holds steady just below a five-month high touched last week and continues to act as a tailwind for the US Dollar, further exerting pressure on the XAU/USD. Concerns about slowing global economic growth support prospects for synchronized interest-rate cuts by most major central banks in the second half of this year, which, in turn, could lend support to the commodity. Traders look to the flash global PMI prints on Tuesday, which, along with the Advance US Q1 GDP report and the US Personal Consumption Expenditures (PCE) Price Index later this week, should provide a fresh impetus. Technical Analysis: Gold price seems vulnerable below 23.6% Fibo., bears await acceptance below $2,300 mark From a technical perspective, a sustained break and acceptance below the 23.6% Fibonacci retracement level of the February-April rally support prospects for a further intraday depreciating move. That said, oscillators on the daily chart – though they have been losing traction – are still holding in the positive territory and warrant some caution for bearish traders. Hence, it will be prudent to wait for some follow-through selling below the $2,300 mark before positioning for deeper losses. The Gold price might then slide to the $2,260-2,255 area, or the 38.2% Fibo. level, before dropping to the $2,225 intermediate support en route to the $2,200-2,190 confluence, comprising the 50% Fibo. level and the 50-day Simple Moving Average (SMA). On the flip side, any attempted recovery might now confront immediate resistance near the $2,325 region. A sustained move beyond, however, should allow the Gold price to accelerate the momentum towards the $2,350-2,355 intermediate hurdle en route to the $2,380 supply zone. This is closely followed by the $2,400 round figure, and the all-time peak near the $2,431-2,432 area, which, if cleared, will be seen as a fresh trigger for bullish traders and set the stage for an extension of the recent blowout rally witnessed over the past two months or so. Gold FAQs Why do people invest in Gold? Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government. Who buys the most Gold? Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves. How is Gold correlated with other assets? Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal. What does the price of Gold depend on? The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.

06:41 USD/INR loses traction ahead of Indian and US PMI data
The Indian Rupee (INR) gains ground on Tuesday, backed by likely equity inflows and US Dollar (USD) sales from state-run banks.

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}Indian Rupee holds positive ground on Tuesday amid equity inflows, USD sales, and lower oil prices. A hawkish repricing of US Fed rate-cut expectations might cap the pair’s downside. Market players await the preliminary India’s HSBC PMI for April, due on Tuesday.The Indian Rupee (INR) gains ground on Tuesday, backed by likely equity inflows and US Dollar (USD) sales from state-run banks. Additionally, the recovery of the INR is bolstered by the decline in oil prices as the fear of a wider Middle East war fades. Nonetheless, the upside of local currency is likely to be a temporary relief as a hawkish repricing of US Federal Reserve (Fed) rate cut expectations will continue to lift the USD, Arnob Biswas, head of foreign exchange research at SMC Global Securities, said.

Investors will monitor India’s preliminary HSBC Purchasing Managers Index (PMI) for April on Tuesday. On the USD’s front, the S&P Global PMI for April will be released later in the day. On Friday, the final reading of the US March Personal Consumption Expenditures Price Index (PCE) will take center stage. Stronger-than-expected US economic data might trigger speculation that the Fed will delay the rate cut cycle and boost the Greenback. Daily Digest Market Movers: The Indian Rupee rebounds amid lower crude oil pricesBrent crude oil prices dropped 0.7% to $86.70 a barrel on Monday. Indian stocks climbed, with the main indices, BSE Sensex and Nifty 50, rising by almost 0.8% and 0.9%, respectively. Continuing the economic growth momentum of 7% in 2024–25 and beyond is possible due to favorable monsoons, increased agricultural production, and enhanced global commerce, said RBI Monetary Policy Committee (MPC) member Shashanka Bhide on Monday. The International Monetary Fund (IMF) raised India's growth projection to 6.8% for 2024 from its January forecast of 6.5%, while the Asian Development Bank (ADB) also raised India's GDP growth forecast for the current fiscal year to 7% from 6.7% earlier. Strong growth is allowing India’s policymakers to maintain interest rates higher for longer to ensure inflation is lowered in a durable manner, according to the minutes of the RBI monetary policy meeting. The Chicago Fed National Activity Index improved to 0.15 in March from 0.09 in the previous reading, according to the Fed Bank of Chicago. Technical analysis: USD/INR remains bullish in the longer termThe Indian Rupee trades weaker on the day. USD/INR keeps the bullish stance unchanged on the daily timeframe as the pair holds above the key 100-day Exponential Moving Average (EMA). However, the 14-day Relative Strength Index (RSI) hovers around the 50.00 midline, suggesting that further consolidation cannot be ruled out before positioning for any near-term USD/INR depreciation.

The first upside barrier for the pair will emerge near a high of April 15 at 83.50. The next hurdle is located at an all-time high of 83.72. Stronger bullish momentum might even take the pair for an upside break to the 84.00 psychological level. On the other hand, the initial support level is seen around a low of April 11 at 83.30. A fresh round of sell-off will pave the way to the 100-day EMA at 83.12, followed by a low of January 15 at 82.78. US Dollar price todayThe table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the weakest against the Australian Dollar. USDEURGBPCADAUDJPYNZDCHFUSD -0.01% -0.01% 0.01% -0.10% -0.03% 0.05% 0.01%EUR0.02% 0.02% 0.01% -0.07% -0.01% 0.08% 0.01%GBP0.00% -0.01% 0.01% -0.10% -0.03% 0.05% 0.01%CAD0.01% -0.01% 0.00% -0.08% -0.02% 0.07% 0.01%AUD0.12% 0.06% 0.09% 0.08% 0.06% 0.15% 0.10%JPY0.02% -0.02% 0.02% 0.01% -0.06% 0.09% 0.03%NZD-0.05% -0.07% -0.07% -0.04% -0.15% -0.08% -0.06%CHF0.01% -0.01% 0.00% 0.01% -0.08% -0.03% 0.06% The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent EUR (base)/JPY (quote). Indian Rupee FAQs What are the key factors driving the Indian Rupee? The Indian Rupee (INR) is one of the most sensitive currencies to external factors. The price of Crude Oil (the country is highly dependent on imported Oil), the value of the US Dollar – most trade is conducted in USD – and the level of foreign investment, are all influential. Direct intervention by the Reserve Bank of India (RBI) in FX markets to keep the exchange rate stable, as well as the level of interest rates set by the RBI, are further major influencing factors on the Rupee. How do the decisions of the Reserve Bank of India impact the Indian Rupee? The Reserve Bank of India (RBI) actively intervenes in forex markets to maintain a stable exchange rate, to help facilitate trade. In addition, the RBI tries to maintain the inflation rate at its 4% target by adjusting interest rates. Higher interest rates usually strengthen the Rupee. This is due to the role of the ‘carry trade’ in which investors borrow in countries with lower interest rates so as to place their money in countries’ offering relatively higher interest rates and profit from the difference. What macroeconomic factors influence the value of the Indian Rupee? Macroeconomic factors that influence the value of the Rupee include inflation, interest rates, the economic growth rate (GDP), the balance of trade, and inflows from foreign investment. A higher growth rate can lead to more overseas investment, pushing up demand for the Rupee. A less negative balance of trade will eventually lead to a stronger Rupee. Higher interest rates, especially real rates (interest rates less inflation) are also positive for the Rupee. A risk-on environment can lead to greater inflows of Foreign Direct and Indirect Investment (FDI and FII), which also benefit the Rupee. How does inflation impact the Indian Rupee? Higher inflation, particularly, if it is comparatively higher than India’s peers, is generally negative for the currency as it reflects devaluation through oversupply. Inflation also increases the cost of exports, leading to more Rupees being sold to purchase foreign imports, which is Rupee-negative. At the same time, higher inflation usually leads to the Reserve Bank of India (RBI) raising interest rates and this can be positive for the Rupee, due to increased demand from international investors. The opposite effect is true of lower inflation.

06:29 Australian Dollar maintains its position with a positive sentiment after PMI data
The Australian Dollar (AUD) continues its upward trajectory for the second consecutive session on Tuesday, buoyed by improved risk appetite.

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This positive sentiment follows a relaxation of geopolitical tensions in the Middle East, as indicated by an Iranian official's statement last week, suggesting no immediate plans for retaliation against Israeli airstrikes, as reported by Reuters. The Australian Dollar receives a slight boost following the release of Australia's Judo Bank Purchasing Managers Index (PMI) data on Tuesday. The Composite PMI surged to a 24-month high of 53.6 in April, an improvement from the previous month's 53.3. This signals a swift expansion in the Australian private sector during the second quarter, with significant growth propelled by the services sector. The US Dollar Index (DXY), which gauges the US Dollar (USD) against six major currencies, faces pressure despite the elevated US Treasury yields. The likelihood of interest rates remaining unchanged in the June meeting has risen to 84.4%, up from the previous week's 78.7%, according to the CME FedWatch Tool. Additionally, comments from Federal Reserve officials hint at a more hawkish stance regarding the trajectory of interest rates in June. Investors are expected to closely monitor the US S&P Global Purchasing Managers Index (PMI) on Tuesday. Market sentiment suggests anticipation of improvements in both the manufacturing and services sectors for April. On Wednesday, attention will shift to the Australian Monthly Consumer Price Index and quarterly RBA Trimmed Mean CPI data. Daily Digest Market Movers: Australian Dollar holds ground after PMI data In April, Australia's Judo Bank Manufacturing PMI surged to an eight-month high of 49.9, contrasting with March's 47.3. However, the Services PMI dipped to a two-month low of 54.2, down from the previous reading of 54.4. The weekly ANZ-Roy Morgan Australian Consumer Confidence declined by 3.2 points to hit its lowest level this year at 80.3, compared to the previous reading of 83.5. ANZ highlighted decreases in both economic and financial subindices. Confidence waned across various housing cohorts, with renters experiencing a notable decline. On Tuesday, the China Securities Journal suggested that there's a possibility the People's Bank of China (PBoC) might lower the Medium-term Lending Facility (MLF) rate on May 15 to decrease funding costs. Such a move could potentially impact the Australian market, given the robust trade relationship between China and Australia. The People's Bank of China maintained its Loan Prime Rates (LPR) at 3.45% on Monday. The LPR serves as a crucial benchmark rate for Chinese banks when determining the interest rates for loans offered to their clients. Given the significant economic ties between China and Australia, any changes in Chinese monetary policy have the potential to impact the Australian market. The Chinese Ministry of Commerce has announced a new tariff on US goods. Specifically, China has imposed a duty of 43.5% on imports of propionic acid from the United States. This chemical is extensively utilized in various sectors, including food, feed, pesticides, and medical applications, as per Reuters. According to a Bloomberg report, Chicago Fed President Austan Goolsbee remarked on Friday that progress on inflation had "stalled," and the Federal Reserve's current restrictive monetary policy is appropriate. Meanwhile, Reuters reported that Atlanta Fed President Raphael Bostic stated that the US central bank would refrain from cutting interest rates until the end of the year. Technical Analysis: Australian Dollar moves above the major level of 0.6450 The Australian Dollar trades around 0.6460 on Tuesday. The pair tests the pullback resistance near 0.6456. A breakthrough above this level could potentially enhance the sentiment for the pair. However, the 14-day Relative Strength Index (RSI) remains below the 50-level, indicating a bearish sentiment. Immediate support could be found at the major level of 0.6450, followed by the psychological level of 0.6400. If the latter is breached, it might exert pressure on the AUD/USD pair to revisit April’s low of 0.6362, followed by the major level of 0.6350. On the upside, the AUD/USD pair could target the psychological level of 0.6500 and endeavor to breach into the symmetrical channel, potentially supporting a bullish sentiment. The upper boundary of the channel could pose a resistance barrier around the 0.6639 level. AUD/USD: Daily ChartAustralian Dollar price today The table below shows the percentage change of Australian Dollar (AUD) against listed major currencies today. Australian Dollar was the strongest against the New Zealand Dollar. USDEURGBPCADAUDJPYNZDCHFUSD -0.01% -0.01% -0.03% -0.14% -0.04% 0.01% 0.01%EUR0.02% 0.00% -0.01% -0.10% -0.02% 0.04% 0.01%GBP0.01% -0.01% -0.02% -0.12% -0.03% 0.02% 0.02%CAD0.03% 0.01% 0.00% -0.08% -0.01% 0.06% 0.04%AUD0.13% 0.10% 0.11% 0.08% 0.08% 0.14% 0.11%JPY0.04% 0.02% 0.02% -0.01% -0.10% 0.05% 0.05%NZD-0.02% -0.04% -0.04% -0.06% -0.15% -0.05% -0.02%CHF0.00% -0.02% -0.02% -0.04% -0.13% -0.05% 0.01% The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent EUR (base)/JPY (quote). Australian Dollar FAQs What key factors drive the Australian Dollar? One of the most significant factors for the Australian Dollar (AUD) is the level of interest rates set by the Reserve Bank of Australia (RBA). Because Australia is a resource-rich country another key driver is the price of its biggest export, Iron Ore. The health of the Chinese economy, its largest trading partner, is a factor, as well as inflation in Australia, its growth rate, and Trade Balance. Market sentiment – whether investors are taking on more risky assets (risk-on) or seeking safe havens (risk-off) – is also a factor, with risk-on positive for AUD. How do the decisions of the Reserve Bank of Australia impact the Australian Dollar? The Reserve Bank of Australia (RBA) influences the Australian Dollar (AUD) by setting the level of interest rates that Australian banks can lend to each other. This influences the level of interest rates in the economy as a whole. The main goal of the RBA is to maintain a stable inflation rate of 2-3% by adjusting interest rates up or down. Relatively high interest rates compared to other major central banks support the AUD, and the opposite for relatively low. The RBA can also use quantitative easing and tightening to influence credit conditions, with the former AUD-negative and the latter AUD-positive. How does the health of the Chinese Economy impact the Australian Dollar? China is Australia’s largest trading partner so the health of the Chinese economy is a major influence on the value of the Australian Dollar (AUD). When the Chinese economy is doing well it purchases more raw materials, goods and services from Australia, lifting demand for the AUD, and pushing up its value. The opposite is the case when the Chinese economy is not growing as fast as expected. Positive or negative surprises in Chinese growth data, therefore, often have a direct impact on the Australian Dollar and its pairs. How does the price of Iron Ore impact the Australian Dollar? Iron Ore is Australia’s largest export, accounting for $118 billion a year according to data from 2021, with China as its primary destination. The price of Iron Ore, therefore, can be a driver of the Australian Dollar. Generally, if the price of Iron Ore rises, AUD also goes up, as aggregate demand for the currency increases. The opposite is the case if the price of Iron Ore falls. Higher Iron Ore prices also tend to result in a greater likelihood of a positive Trade Balance for Australia, which is also positive of the AUD. How does the Trade Balance impact the Australian Dollar? The Trade Balance, which is the difference between what a country earns from its exports versus what it pays for its imports, is another factor that can influence the value of the Australian Dollar. If Australia produces highly sought after exports, then its currency will gain in value purely from the surplus demand created from foreign buyers seeking to purchase its exports versus what it spends to purchase imports. Therefore, a positive net Trade Balance strengthens the AUD, with the opposite effect if the Trade Balance is negative.

05:06 BoJ’s Ueda: Would like to leave some scope for adjustment by not pre-committing to a certain policy too much
Bank of Japan (BoJ) Governor Kazuo Ueda commented on the Japanese wage negotiations and their implication on the central bank’s policy this Tuesday.

04:52 AUD/JPY clings to a psychological level with a positive sentiment
AUD/JPY maintains stability on Tuesday following gains in the previous session.

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The prevailing optimistic mood may lend support to the Australian Dollar (AUD), underpinning the AUD/JPY cross, potentially influenced by a relaxed geopolitical climate in the Middle East. Australia's Judo Bank Composite Purchasing Managers Index (PMI) surged to a 24-month high of 53.6 in April, marking an improvement from the previous month's 53.3. This signals an accelerated expansion in the Australian private sector during the second quarter, with notable growth driven by the services sector. The Japanese Yen (JPY) faces challenges due to the expanding yield gap between Japan and many other major countries, prompting traders to borrow JPY and invest in higher-yielding assets elsewhere. Additionally, dovish comments from Bank of Japan (BoJ) Governor Kazuo Ueda on Friday added to the pressure on the Yen. According to Reuters, Ueda emphasized the necessity for the BoJ to maintain accommodative monetary policies in the foreseeable future due to underlying inflation remaining "somewhat below" the 2% target. Daily Digest Market Movers: AUD/JPY consolidates with an improved risk sentiment Australia's Judo Bank Manufacturing PMI rose to an eight-month high of 49.9 in April, compared to March's 47.3. Services PMI declined to a 2-month low of 54.2 compared to the previous reading of 54.4. The weekly ANZ-Roy Morgan Australian Consumer Confidence declined by 3.2 points to reach its lowest level this year at 80.3, down from the previous reading of 83.5. ANZ noted that both economic and financial subindices experienced decreases. Confidence dropped across various housing cohorts, with renters being particularly affected. Japan’s Jibun Bank Manufacturing PMI improved to 49.9 in April, compared to the expected reading of 48.0 and 48.2 prior. Meanwhile, Services PMI rose to 54.6 from the previous reading of 54.1. On Tuesday, the China Securities Journal reported that there remains a possibility that the People's Bank of China (PBoC) will decrease the Medium-term Lending Facility (MLF) rate, aiming to lower funding costs. The next MLF rate setting is scheduled for May 15. This decision could potentially influence the Australian market, given the close trade relationship between the two countries. The People's Bank of China maintained its Loan Prime Rates (LPR) at 3.45% on Monday. The LPR functions as a benchmark rate for Chinese banks in setting interest rates for loans extended to their clients. On Monday, the Chinese Ministry of Commerce announced a new tariff on US goods. Specifically, China has imposed a duty of 43.5% on imports of propionic acid from the United States. This chemical is extensively utilized in various sectors, including food, feed, pesticides, and medical applications, as per Reuters report. According to a Westpac report, while the RBA signaled that rates are unlikely to be raised further, greater confidence in the inflation outlook is required before contemplating the possibility of rate cuts. Traders are expected to closely monitor the upcoming Monthly Consumer Price Index and quarterly RBA Trimmed Mean CPI data from Australia on Wednesday. Technical Analysis: AUD/JPY holds position around the level of 100.00 The AUD/JPY trades around 99.90 on Tuesday. The cross remains above the significant support level of 99.65, coupled with the 14-day Relative Strength Index (RSI) persisting above the 50 level, indicating an evolving bullish sentiment. The immediate barrier appears at the psychological level of 100.00, following the major level of 100.50 and April’s high of 100.81. A break above this region could lead the AUD/JPY cross to test the upper boundary of the ascending channel. On the downside, the AUD/JPY cross could find immediate support at the psychological level of 99.50. A break below this level could lead the pair to approach the psychological level of 99.00. A break below this level could push the pair to test the lower boundary of the ascending channel and a major level of 98.50. AUD/JPY: Daily ChartAustralian Dollar price today The table below shows the percentage change of Australian Dollar (AUD) against listed major currencies today. Australian Dollar was the strongest against the US Dollar. USDEURGBPCADAUDJPYNZDCHFUSD -0.03% -0.04% 0.00% -0.12% -0.04% -0.04% 0.00%EUR0.03% -0.02% 0.03% -0.08% -0.02% -0.01% 0.01%GBP0.03% 0.01% 0.04% -0.08% -0.01% 0.00% 0.04%CAD0.00% -0.02% -0.04% -0.11% -0.05% -0.03% -0.01%AUD0.12% 0.08% 0.07% 0.10% 0.08% 0.08% 0.10%JPY0.04% 0.01% 0.00% 0.02% -0.08% 0.01% 0.04%NZD0.04% 0.01% 0.00% 0.03% -0.08% 0.00% 0.02%CHF0.02% -0.01% -0.03% 0.01% -0.09% -0.04% -0.02% The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent EUR (base)/JPY (quote). Australian Dollar FAQs What key factors drive the Australian Dollar? One of the most significant factors for the Australian Dollar (AUD) is the level of interest rates set by the Reserve Bank of Australia (RBA). Because Australia is a resource-rich country another key driver is the price of its biggest export, Iron Ore. The health of the Chinese economy, its largest trading partner, is a factor, as well as inflation in Australia, its growth rate and Trade Balance. Market sentiment – whether investors are taking on more risky assets (risk-on) or seeking safe-havens (risk-off) – is also a factor, with risk-on positive for AUD. How do the decisions of the Reserve Bank of Australia impact the Australian Dollar? The Reserve Bank of Australia (RBA) influences the Australian Dollar (AUD) by setting the level of interest rates that Australian banks can lend to each other. This influences the level of interest rates in the economy as a whole. The main goal of the RBA is to maintain a stable inflation rate of 2-3% by adjusting interest rates up or down. Relatively high interest rates compared to other major central banks support the AUD, and the opposite for relatively low. The RBA can also use quantitative easing and tightening to influence credit conditions, with the former AUD-negative and the latter AUD-positive. How does the health of the Chinese Economy impact the Australian Dollar? China is Australia’s largest trading partner so the health of the Chinese economy is a major influence on the value of the Australian Dollar (AUD). When the Chinese economy is doing well it purchases more raw materials, goods and services from Australia, lifting demand for the AUD, and pushing up its value. The opposite is the case when the Chinese economy is not growing as fast as expected. Positive or negative surprises in Chinese growth data, therefore, often have a direct impact on the Australian Dollar and its pairs. How does the price of Iron Ore impact the Australian Dollar? Iron Ore is Australia’s largest export, accounting for $118 billion a year according to data from 2021, with China as its primary destination. The price of Iron Ore, therefore, can be a driver of the Australian Dollar. Generally, if the price of Iron Ore rises, AUD also goes up, as aggregate demand for the currency increases. The opposite is the case if the price of Iron Ore falls. Higher Iron Ore prices also tend to result in a greater likelihood of a positive Trade Balance for Australia, which is also positive of the AUD. How does the Trade Balance impact the Australian Dollar? The Trade Balance, which is the difference between what a country earns from its exports versus what it pays for its imports, is another factor that can influence the value of the Australian Dollar. If Australia produces highly sought after exports, then its currency will gain in value purely from the surplus demand created from foreign buyers seeking to purchase its exports versus what it spends to purchase imports. Therefore, a positive net Trade Balance strengthens the AUD, with the opposite effect if the Trade Balance is negative.

04:49 BoJ’s Ueda: Future monetary policy guidance will depend on economy, price, and market development at the time
Bank of Japan (BoJ) Governor Kazuo Ueda said on Tuesday that the Japanese central bank doesn’t have any preset idea on the timing, or pace of future rate hikes, adding that future monetary policy guidance will depend on economy, price, market development at the time, per Reuters.

04:47 Japanese Yen bounces off multi-decade low against USD, lacks follow-through
The Japanese Yen (JPY) ticks higher against its American counterpart during the Asian session on Tuesday and recovers a major part of the previous day's losses to a fresh 34-year low, though any meaningful recovery still seems elusive.

.fxs-faq-module-wrapper{border:1px solid #dddedf;background:#fff;margin-bottom:32px;width:100%;float:left;font-family:Roboto,sans-serif}.fxs-faq-module-title{color:#1b1c23;font-size:16px;font-style:italic;font-weight:700;line-height:22.4px;text-transform:uppercase;background:#f3f3f8;padding:8px 16px;margin:0}.fxs-faq-module-container{padding:16px;width:100%;box-sizing:border-box;display:flex;flex-direction:column;gap:12px}.fxs-faq-module-section{padding-bottom:16px;border-bottom:1px solid #ececf1;margin-bottom:0}.fxs-faq-module-section:last-child{border:none;margin-bottom:0}.fxs-faq-module-container input[type=checkbox]{display:none}.fxs-faq-module-header{padding:4px 0;background-color:#fff;border:none;position:relative;cursor:pointer;margin:0}.fxs-faq-module-header label{display:block;cursor:pointer}.fxs-faq-module-header label span{display:block;width:calc(100% - 50px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{content:"";position:absolute;top:50%;right:16px;width:8px;height:2px;background-color:#49494f;transition:all .2s ease-in-out;transition-delay:0}.fxs-faq-module-header label:after{transform:rotate(45deg) translateX(-4px)}.fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(4px)}.fxs-faq-module-header label:after,.fxs-faq-module-header label:before{transition:transform .3s ease-in-out}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:after{transform:rotate(45deg) translateX(4px)}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-header label:before{transform:rotate(-45deg) translateX(-4px)}.fxs-faq-module-content{max-height:0;overflow:hidden;transition:all .3s ease-in-out;color:#49494f;font-weight:300;padding:0;font-size:14.72px;line-height:20px;margin:0}input[type=checkbox]:checked+.fxs-faq-module-section .fxs-faq-module-content{max-height:1000px;margin-top:8px}@media (min-width:680px){.fxs-faq-module-title{font-size:19.2px;line-height:27.2px}.fxs-faq-module-header{font-size:19.2px;line-height:25.92px}.fxs-faq-module-content{font-size:16px;line-height:21.6px}}The Japanese Yen draws some support from the possibility of a government intervention.The divergent BoJ-Fed expectations and easing Middle East tensions cap the safe-haven JPY.Traders also seem reluctant ahead of the key US macro data and BoJ meeting later this week.The Japanese Yen (JPY) ticks higher against its American counterpart during the Asian session on Tuesday and recovers a major part of the previous day's losses to a fresh 34-year low, though any meaningful recovery still seems elusive. Investors remain on alert amid speculations that Japanese authorities will intervene to prop up the domestic currency, which, in turn, is seen lending some support to the JPY. The upside potential, however, seems limited in the wake of expectations that the difference in rates between the US and Japan will stay wide for some time. The Bank of Japan (BoJ) has indicated that it is in no rush in terms of policy normalization and is expected to wait until October before hiking interest rates again. In contrast, investors have been paring back their bets about interest rate cuts by the Federal Reserve (Fed) amid sticky inflation. Hawkish Fed expectations, meanwhile, remain supportive of elevated US Treasury bond yields and continue to underpin the US Dollar (USD). Apart from this, cooling Middle East tensions should cap gains for the safe-haven JPY and act as a tailwind for the USD/JPY pair. Daily Digest Market Movers: Japanese Yen might struggle to attract buyers amid BoJ's uncertain rate outlook Japan's Finance Minister Shunichi Suzuki, along with other policymakers, said that they are watching currency moves closely and will respond as needed, providing some respite to the Japanese Yen. The flash PMIs released from Japan on Tuesday showed that overall business activity improved substantially at the beginning of the second quarter, albeit did little to impress the JPY bulls. The au Jibun Bank Japan Manufacturing PMI moved closer to breaking back into expansionary territory and improved from 48.2 to 49.9 in April – marking the strongest reading since June 2023. The gauge for the services sector came in at 54.6 for the reported month as compared to 54.1 in March, suggesting that demand remained strong despite weakness in other aspects of the economy. Following last month’s historic decision to end the negative rate policy and Yield Curve Control (YCC) program, the Bank of Japan is expected to keep its short-term interest target unchanged on Friday. Moreover, the BoJ is anticipated to adopt a data-dependent approach in deciding the next interest rate hike amid uncertainties on whether wage hikes will broaden and drive up consumer prices. Investors pushed back their expectations about the timing of the first rate cut by the Federal Reserve to September and downsized the number of rate-cuts this year to less than two amid sticky inflation. Adding to this, the recent hawkish remarks by FOMC members allow the US Dollar to stand tall near its highest level since November touched last week and act as a tailwind for the USD/JPY pair. Traders now look to the flash US PMIs for some impetus, though the focus remains on the Advance US Q1 GDP on Thursday and the Personal Consumption Expenditures (PCE) Price Index on Friday. Technical Analysis: USD/JPY needs to consolidate before the next leg up, 155.00 hold the key for bullish traders From a technical perspective, the Relative Strength Index (RSI) is still flashing overbought conditions on the daily chart and holding back the USD/JPY pair from placing fresh bets. Any further slide, however, is more likely to attract some dip-buyers near the 154.35-154.30 region. This should help limit the downside for spot prices near the 154.00 mark, which if broken might expose last Friday's swing low, around the 153.60-153.55 zone. The next relevant support is pegged near the 153.25-153.20 area and the 153.00 mark. A convincing break below the latter could prompt aggressive technical selling and drag the pair to the 152.50 intermediate support en route to a short-term trading range resistance breakpoint near the 152.00 round figure. On the flip side, the multi-decade high, around the 154.85 region touched on Monday, followed by the 155.00 psychological mark, could act as an immediate hurdle. A sustained strength beyond the latter will be seen as a fresh trigger for bullish traders and set the stage for an extension of a well-established appreciating trend from the March monthly swing low. Japanese Yen FAQs What key factors drive the Japanese Yen? The Japanese Yen (JPY) is one of the world’s most traded currencies. Its value is broadly determined by the performance of the Japanese economy, but more specifically by the Bank of Japan’s policy, the differential between Japanese and US bond yields, or risk sentiment among traders, among other factors. How do the decisions of the Bank of Japan impact the Japanese Yen? One of the Bank of Japan’s mandates is currency control, so its moves are key for the Yen. The BoJ has directly intervened in currency markets sometimes, generally to lower the value of the Yen, although it refrains from doing it often due to political concerns of its main trading partners. The current BoJ ultra-loose monetary policy, based on massive stimulus to the economy, has caused the Yen to depreciate against its main currency peers. This process has exacerbated more recently due to an increasing policy divergence between the Bank of Japan and other main central banks, which have opted to increase interest rates sharply to fight decades-high levels of inflation. How does the differential between Japanese and US bond yields impact the Japanese Yen? The BoJ’s stance of sticking to ultra-loose monetary policy has led to a widening policy divergence with other central banks, particularly with the US Federal Reserve. This supports a widening of the differential between the 10-year US and Japanese bonds, which favors the US Dollar against the Japanese Yen. How does broader risk sentiment impact the Japanese Yen? The Japanese Yen is often seen as a safe-haven investment. This means that in times of market stress, investors are more likely to put their money in the Japanese currency due to its supposed reliability and stability. Turbulent times are likely to strengthen the Yen’s value against other currencies seen as more risky to invest in.

04:25 USD/CAD trades on a softer note below 1.3700 ahead of US PMI data
The USD/CAD pair extends its downside near 1.3695 despite lower crude oil prices.

USD/CAD trades in negative territory for the fifth consecutive day around 1.3695 on Tuesday. The high-for-longer US rate narrative might boost the USD and cap the pair’s downside. Canadian Industrial Produce Prices dropped by 0.8% MoM in March compared to a rise of 1.1% prior, in line with the consensus. The USD/CAD pair extends its downside near 1.3695 despite lower crude oil prices. However, the downside of the pair might be capped by strong US economic data and the Fed’s hawkish comments. Investors will keep an eye on the US S&P Global Purchasing Managers Index (PMI) ahead of US Gross Domestic Product (GDP) and US Core Personal Consumption Expenditures (PCE) later this week.

Many Fed policymakers agreed with the idea of keeping borrowing costs at the current level, given the slow and bumpy progress on inflation and the robust US economy. New York Fed President John Williams said he doesn't feel urgency to cut interest rates, given the strength of the economy. Chicago Fed Austan Goolsbee stated that the Fed's current restrictive monetary policy is appropriate due to the robust US economic data. The high-for-longer rate narrative in the USD might lift the greenback against its rivals. The Core US PCE might offer some hints about the further confirmation that progress against inflation has stalled.

On the Loonie front, data released from Statistics Canada revealed that Canadian Industrial Produce Prices were in line with market expectations, easing by 0.8% MoM in March from the previous month’s 1.1% (revised upward from 0.7%). Meanwhile, the decline of WTI prices exerts some selling pressure as Canada is the largest oil exporter to the United States. Canada’s Retail Sales will be released on Thursday, which is estimated to improve to 0.1% MoM in February from a decrease of 0.3% in January. USD/CAD Overview Today last price 1.3692 Today Daily Change -0.0009 Today Daily Change % -0.07 Today daily open 1.3701 Trends Daily SMA20 1.3646 Daily SMA50 1.3574 Daily SMA100 1.3496 Daily SMA200 1.3531 Levels Previous Daily High 1.3753 Previous Daily Low 1.3687 Previous Weekly High 1.3846 Previous Weekly Low 1.3724 Previous Monthly High 1.3614 Previous Monthly Low 1.342 Daily Fibonacci 38.2% 1.3712 Daily Fibonacci 61.8% 1.3728 Daily Pivot Point S1 1.3674 Daily Pivot Point S2 1.3647 Daily Pivot Point S3 1.3607 Daily Pivot Point R1 1.374 Daily Pivot Point R2 1.378 Daily Pivot Point R3 1.3807

04:16 PBoC sets USD/CNY reference rate at 7.1059 vs 7.1043 previous
The People’s Bank of China (PBoC) set the USD/CNY central rate for the trading session ahead on Tuesday at 7.1059 as compared to the previous day's fix of 7.1043 and 7.2437 Reuters estimates.

The People’s Bank of China (PBoC) set the USD/CNY central rate for the trading session ahead on Tuesday at 7.1059 as compared to the previous day's fix of 7.1043 and 7.2437 Reuters estimates.

03:55 Japan’s Suzuki: Government ready to respond appropriately to excessive FX moves
Japanese Finance Minister Shunichi Suzuki offered some verbal intervention on Tuesday.

03:32 Japan Jibun Bank Services PMI: 54.6 (April) vs 54.1
Japan Jibun Bank Services PMI: 54.6 (April) vs 54.1

03:30 Japan Jibun Bank Manufacturing PMI registered at 49.9 above expectations (48) in April
Japan Jibun Bank Manufacturing PMI registered at 49.9 above expectations (48) in April

03:23 WTI holds below $82.00 on easing Middle East tensions, hawkish Fed
Western Texas Intermediate (WTI), the US crude oil benchmark, is trading around $82.00 on Tuesday.

WTI loses momentum to nearly one-month lows of $82.00 on Tuesday.Easing tensions between Israel and Iran limits the WTI’s downside. A large build in the US stockpile in recent weeks and a hawkish Fed weigh on the black gold.Western Texas Intermediate (WTI), the US crude oil benchmark, is trading around $82.00 on Tuesday. The black gold edges lower on the day as the concerns about a wider Middle East war fade. Later on Tuesday, oil traders will take more cues from the preliminary US S&P Global Purchasing Managers Index (PMI) data for April and the API Weekly Crude Oil Stock report.

Iranian Foreign Minister Hossein Amirabdollahian said on Friday that Iran does not plan to respond to Israel’s retaliatory strike launched, while Israeli authorities remained mostly silent. The absence of public statements afterward tends to imply that both sides are attempting to ease tensions. WTI prices drop to nearly monthly low as Israel's retaliatory attack on Iran was smaller than had been feared. However, any escalating tensions between Israel and Iran could limit the WTI’s downside from its lower price levels.

The increase in US crude oil inventories in recent weeks surpassed expectations, which exerts downward pressure on WTI prices. Furthermore, the hawkish remarks from the Federal Reserve (Fed) have led to a strong US Dollar (USD) and acts as a headwind for the black gold price. It’s worth noting that a strong dollar makes oil more expensive for holders of other currencies. Chicago Fed Austan Goolsbee said last week that with the strength of the labour market and elevated inflation, he believes the Fed's current restrictive monetary policy is appropriate, per Reuters.

On the other hand, hope for Chinese demand might offer some relief to WTI prices as China is the world's biggest oil importer. The Chinese government aims to accomplish this with the help of fiscal and monetary stimulus measures to lift the economy. ANZ economists expected China's economy to grow 4.9% in 2024, up from 4.2% previously. However, the Chinese property sector remains fragile and it has been a major drag on China's economy. Any negative sign about China’s economy could weigh on the WTI prices. WTI US OIL Overview Today last price 82.03 Today Daily Change 0.00 Today Daily Change % 0.00 Today daily open 82.03 Trends Daily SMA20 83.91 Daily SMA50 80.76 Daily SMA100 77 Daily SMA200 79.63 Levels Previous Daily High 82.18 Previous Daily Low 80.62 Previous Weekly High 85.67 Previous Weekly Low 81.05 Previous Monthly High 83.05 Previous Monthly Low 76.5 Daily Fibonacci 38.2% 81.22 Daily Fibonacci 61.8% 81.59 Daily Pivot Point S1 81.04 Daily Pivot Point S2 80.05 Daily Pivot Point S3 79.48 Daily Pivot Point R1 82.6 Daily Pivot Point R2 83.17 Daily Pivot Point R3 84.16

02:28 AUD/USD rises on risk-on mood, upbeat PMIs
The Aussie Dollar began the week on the front foot and registered gains against the US Dollar on Monday, gaining more than 0.54% as risk appetite improved.

AUD/USD climbs over 0.54%, reaching 0.6449, buoyed by gains in Wall Street and a flat US Dollar.Australian manufacturing activity nears expansion with April's Judo Bank Manufacturing PMI rising to 49.9.Busy week ahead for US economic data, including PMIs and GDP, expected to influence AUD/USD direction.The Aussie Dollar began the week on the front foot and registered gains against the US Dollar on Monday, gaining more than 0.54% as risk appetite improved. As the Asian session begins, the AUD/USD trades at 0.6449, up 0.01%. AUD/USD nears 0.6450 boosted by positive Australian data and lower US Treasury yields Wall Street finished the session with gains, while US Treasury yields edged lower. The Greenback finished the session flat, though the AUD/USD bounced off yearly lows, shy of the 0.6450 area. Data from Australia revealed that manufacturing activity in April improved. The Judo Bank Manufacturing PMI came at 49.9, up from 47.3, at a tick of expansion. The Services PMI cooled from 54.4 to 54.2, though it expanded at the fastest rate in two years. In the meantime, data from the United States featured the Chicago Fed National Activity Index (CFNAI), which rose by 0.15 in March from 0.09 in February. The index’s three-month moving average increased from -0.28 in February to -0.19 in March. What’s ahead for AUD/USD traders? This week, the economic docket in the United States (US) will be busy. It will feature S&P Global PMIs, housing data, Durable Goods Orders, and the GDP for the first quarter of 2024. That, along with the release of the Fed’s preferred gauge for inflation, the March Personal Consumption Expenditure (PCE) Price Index, will dictate the direction of the AUD/USD. AUD/USD Overview Today last price 0.6448 Today Daily Change 0.0029 Today Daily Change % 0.45 Today daily open 0.6419 Trends Daily SMA20 0.6512 Daily SMA50 0.6534 Daily SMA100 0.6592 Daily SMA200 0.6534 Levels Previous Daily High 0.6433 Previous Daily Low 0.6362 Previous Weekly High 0.6493 Previous Weekly Low 0.6362 Previous Monthly High 0.6667 Previous Monthly Low 0.6478 Daily Fibonacci 38.2% 0.6389 Daily Fibonacci 61.8% 0.6406 Daily Pivot Point S1 0.6377 Daily Pivot Point S2 0.6334 Daily Pivot Point S3 0.6306 Daily Pivot Point R1 0.6447 Daily Pivot Point R2 0.6475 Daily Pivot Point R3 0.6518

02:22 EUR/USD steady near 1.0650 as markets gear up for PMI-heavy Tuesday
The EUR/USD is testing the waters near 1.0650 after a quiet Monday saw the major pair flatline ahead of a densely-packed economic data docket.

PMI activity data due on both sides of the Atlantic.EUR/USD finds middle ground just below 1.0700.Markets looking for moderate recovery across the PMI board.The EUR/USD is testing the waters near 1.0650 after a quiet Monday saw the major pair flatline ahead of a densely-packed economic data docket. Both the US and the wider Eurozone area will see updates to Purchasing Managers Index (PMI) figures on Tuesday, with high-tier US data due in the back half of the trading week as rate-hungry markets continue to froth for rate cuts from the US Federal Reserve (Fed). Tuesday brings pan-Eurozone HCOB PMIs for April, with the Composite PMI expected to recover to 50.8 in April compared to the previous month’s 50.3. Germany’s Composite PMI is also expected to climb further to 48.6 from the previous 47.7. The broader European Manufacturing PMI is expected to remain in contraction territory but recover ground to 46.5 from the previous 46.1. On the US side, the S&P Global PMI for April is expected to print at 52.0 for both the Manufacturing and Services components. Manufacturing was last seen at 51.9, while Services last printed at 51.7 in March. Later this week, US annualized quarterly Gross Domestic Product (GDP) is expected to ease back to 2.5% from the previous print of 3.4%, while March’s Core Personal Consumption Expenditure (PCE) Price Index is expected to hold steady at 0.3% MoM in April. EUR/USD technical outlookThe EUR/USD pair is holding steady near 1.0650 after a recent tumble from the 1.0880 level, with the Fiber sliding 2.62% peak-to-trough in April. A limited recover from near-term lows just above the 1.0600 handle leaves the pair struggling on the low side of the 200-hour Exponential Moving Average (EMA) as price action looks for a floor. Daily candlesticks see the way open for an extended decline into the last major swing low near 1.0500, but recent price action could drag the EUR/USD back into the 200-day EMA at 1.0807. EUR/USD hourly chart EUR/USD daily chart

02:12 GBP/USD remains on the defensive near 1.2350, investors await UK, US PMI data
The GBP/USD pair remains on the defensive near 1.2350, the lowest since mid-November on Tuesday during the early Asian session.

GBP/USD extends its downside around 1.2350 in Tuesday’s early Asian session.Several Fed officials emphasized the US central bank is not in a hurry on interest rate cuts.Investors continue to price in the BoE will cut the interest rate earlier than the US Fed. The GBP/USD pair remains on the defensive near 1.2350, the lowest since mid-November on Tuesday during the early Asian session. The USD Index (DXY) consolidates its gains above 106.10 as traders await the preliminary S&P Global Purchasing Managers Index (PMI) data from the US and UK for April.

The Federal Reserve (Fed) policymakers agreed that inflation in the US is coming down slowly, but remains high. Therefore, the US central bank is not in a hurry on interest rate cuts. Atlanta Fed President Raphael Bostic noted that interest rates will have to be kept at a "restrictive level" and might only ease "at the end of 2024”. Meanwhile, Chicago Fed President Austan Goolsbee signaled a longer timeline for rate cuts as progress on inflation had "stalled.”. The hawkish stance of the Fed on interest rates so far this year has boosted the US Dollar (USD) and created a headwind for the GBP/USD pair.

On Monday, the Chicago Fed National Activity Index improved to 0.15 in March from 0.09 in the previous reading, according to the Fed Bank of Chicago. The attention will shift to the April PMI reports, due later on Tuesday. Both manufacturing and Services PMI figures are projected to improve in April. If the reports show a stronger-than-expected outcome, this could provide some support to the Greenback and cap the major pair’s upside.

On the other hand, interest rate futures are fully priced in a first quarter-point interest rate cut by the Bank of England for August and see two rate cuts before the end of the year. The growing speculation that the UK central bank will cut the interest rate earlier than the US Fed exerts some selling pressure on the Pound Sterling (GBP). Last week, BoE Deputy Governor Dave Ramsden said the progress on UK inflation and the downbeat economic outlook will allow the BoE to begin the rate cut cycle earlier than previously expected. Investors have priced in a 60% odds of a June rate cut near 60%, per Reuters. GBP/USD Overview Today last price 1.2351 Today Daily Change -0.0022 Today Daily Change % -0.18 Today daily open 1.2373 Trends Daily SMA20 1.2561 Daily SMA50 1.2638 Daily SMA100 1.2657 Daily SMA200 1.2569 Levels Previous Daily High 1.2468 Previous Daily Low 1.2367 Previous Weekly High 1.2499 Previous Weekly Low 1.2367 Previous Monthly High 1.2894 Previous Monthly Low 1.2575 Daily Fibonacci 38.2% 1.2406 Daily Fibonacci 61.8% 1.243 Daily Pivot Point S1 1.2337 Daily Pivot Point S2 1.2301 Daily Pivot Point S3 1.2236 Daily Pivot Point R1 1.2438 Daily Pivot Point R2 1.2504 Daily Pivot Point R3 1.254

02:12 Judo Bank Australian Composite PMI accelerates to its highest rate in two years at 53.6
Australia's Judo Bank Purchasing Managers Index (PMI) Composite rose to a 24-month high of 53.6 in April compared to the previous month's 53.3.

Australia's Judo Bank Purchasing Managers Index (PMI) Composite rose to a 24-month high of 53.6 in April compared to the previous month's 53.3. The Australian private sector ticked up into an accelerated pace of growth in the second quarter bolstered primarily by Services sector growth. Key highlights Australia's Manufacturing PMI Output rose to an eight-month high of 49.1 compared to March's 45.7, brushing off a 2-month low of 54.2 in the Services Business Activity compared to March's 54.4. According to Judo Bank's Chief Economic Advisor Warren Hogan, "Over the last three months, the PMI results have pointed to a cyclical recovery in the Australian economy in 2024 following a consumer-led slowdown in 2023. While this is great news for the Australian economy, these results are stronger than what the RBA is expecting, suggesting that the economy is beginning to wander off their ‘narrow path’." Hogan continued, "These results are inconsistent with interest rate reductions at any stage in the foreseeable future and raise the risk that the RBA may have to start hiking again at some stage over the back half of 2024.” Market reaction The AUD/USD is trading steadily in the early Tuesday market session, testing the waters near 0.6450. About Australia's Composite Judo Bank PMI The Composite Purchasing Managers Index (PMI), released on a monthly basis by Judo Bank and S&P Global, is a leading indicator gauging private-business activity in Australia for both the manufacturing and services sectors. The data is derived from surveys to senior executives. Each response is weighted according to the size of the company and its contribution to total manufacturing or services output accounted for by the sub-sector to which that company belongs. Survey responses reflect the change, if any, in the current month compared to the previous month and can anticipate changing trends in official data series such as Gross Domestic Product (GDP), industrial production, employment and inflation. The index varies between 0 and 100, with levels of 50.0 signaling no change over the previous month. A reading above 50 indicates that the Australian private economy is generally expanding, a bullish sign for the Australian Dollar (AUD). Meanwhile, a reading below 50 signals that activity is generally declining, which is seen as bearish for AUD.

02:01 Australia Judo Bank Composite PMI: 53.6 (April) vs 53.3
Australia Judo Bank Composite PMI: 53.6 (April) vs 53.3

02:01 Australia Judo Bank Services PMI down to 54.2 in April from previous 54.4
Australia Judo Bank Services PMI down to 54.2 in April from previous 54.4

02:00 Australia Judo Bank Manufacturing PMI climbed from previous 47.3 to 49.9 in April
Australia Judo Bank Manufacturing PMI climbed from previous 47.3 to 49.9 in April

00:32 NZD/USD Price Analysis: Bears hold sway, subtle signs of potential bullish reversal emerging
The NZD/USD pair advanced to 0.5920 on Monday, reflecting a gain of 0.47%.

Diminishing red bars of the daily MACD imply a potential easing of bearish momentum, signaling an early indication of a bullish turnaround.The hourly chart reveals an RSI oscillating in the positive zone, and MACD with green bars, signaling potential short-term positive momentum.The NZD/USD pair advanced to 0.5920 on Monday, reflecting a gain of 0.47%. Overall, the bearish force remains strong, while the bulls begin to give signs of potential recovery, highlighting the start of a possible bullish reversal. On the daily chart, the Relative Strength Index (RSI) remains in negative territory, indicating an ongoing bearish momentum. Although there is a minor upward trend, it remains short of breaking into the positive zone. The decreasing red bars of the Moving Average Convergence Divergence (MACD) suggest a slide in negative momentum, indicating possible signs of a potential bullish reversal. NZD/USD daily chart On the hourly chart, a similar condition prevails. The RSI has been oscillating in the positive territory for most of the session, but recently recorded a slight downward inclination, signaling a potential pullback. The MACD histogram also shows rising green bars, indicating a surge in positive momentum. NZD/USD hourly chart The broader market perspective reveals much regarding the NZD/USD's performance versus its Simple Moving Average (SMA). With the pair being below the 20,100 and 200-day SMA, a long and short-term downward pressure on the currency is evident. In summary, there is a bearish dominance in the market, reinforced by both the RSI and MACD trends on the daily and hourly charts, as well as the SMA positioning. However, the slight increase in the daily RSI and the diminishing bearish momentum in the MACD could signify the early stages of a market reversal. NZD/USD Overview Today last price 0.5919 Today Daily Change 0.0034 Today Daily Change % 0.58 Today daily open 0.5885 Trends Daily SMA20 0.5973 Daily SMA50 0.6062 Daily SMA100 0.6123 Daily SMA200 0.6055 Levels Previous Daily High 0.5907 Previous Daily Low 0.5851 Previous Weekly High 0.5954 Previous Weekly Low 0.5851 Previous Monthly High 0.6218 Previous Monthly Low 0.5956 Daily Fibonacci 38.2% 0.5873 Daily Fibonacci 61.8% 0.5886 Daily Pivot Point S1 0.5855 Daily Pivot Point S2 0.5825 Daily Pivot Point S3 0.5799 Daily Pivot Point R1 0.5911 Daily Pivot Point R2 0.5937 Daily Pivot Point R3 0.5967

00:25 Gold price tumbles to one-week low as geopolitical tensions abate
Gold prices plummet sharply and retrace last week's gains, down more than 2.50% as the Middle East's woes abate.

00:10 Dow Jones climbs on Monday as risk appetite lurches higher
The Dow Jones Industrial Average (DJIA) is on the run into the top side to open the new trading week, with the index climbing into a five-day peak above 38,400.00.

00:00 South Korea Producer Price Index Growth (MoM) dipped from previous 0.3% to 0.2% in March
South Korea Producer Price Index Growth (MoM) dipped from previous 0.3% to 0.2% in March

00:00 South Korea Producer Price Index Growth (YoY) rose from previous 1.5% to 1.6% in March
South Korea Producer Price Index Growth (YoY) rose from previous 1.5% to 1.6% in March

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Forex News Timeline

14:29 NZD/USD Price Analysis: Exhibits volatility contraction near 0.5900 The NZD/USD pair drops to near the crucial support of 0.5900 in Tuesday’s European session while attempting to break above the immediate resistance of 0.5930.

14:19 Upward revision to BoJ CPI inflation forecast may afford little protection to JPY – Rabobank Analysts at Rabobank share their outlook for USD/JPY ahead of the Bank of Japan's (BoJ) policy meeting later in the week.

14:08 USD/JPY marks up a 34-year high as USD returns to favor USD/JPY pulls back a touch after making a new high for April – and the last 34 years – at 154.86 on Tuesday, as the US Dollar (USD) returns to favor amid continued optimism regarding the US economy.

13:55 Gold price extends losses on weak safe haven demand, Fed’s hawkish outlook Gold price (XAU/USD) extends its downside for a second consecutive day, trading slightly below the crucial support of $2,300 in Tuesday’s European session.

13:54 US Dollar flat ahead of record 2-year note auction – BBH Analysts at BBH share their near-term outlook for the US Dollar.

13:47 Oil spikes with setback on Kurdish Oil Exports Oil prices are recovering from a small dip on Monday, which saw Crude falling towards a key pivotal level on the daily chart.

13:30 US Dollar eases on the back of upbeat PMIs in Europe The US Dollar (USD) eases on Tuesday as the Euro rallies across the board. The move came on the back of a triple whammy in Eurozone data, with the preliminary Services component in the Purchasing Managers Index (PMI) for Germany, France and

12:31 Mexican Peso trades mixed as PMIs test health of global economy The Mexican Peso (MXN) is trading mixed on Tuesday after plummeting temporarily at the end of last week, but then reverting to mean after fears of an escalation in the conflict in the Middle East abated.

12:10 EUR/JPY holds gains after mixed PMI data from Germany and Eurozone, trades above 165.00 EUR/JPY cross extends its winning streak for the third successive session, hovering around 165.20 during the European trading hours on Tuesday.

12:02 GBP/JPY climbs to fresh daily top, beyond mid-191.00s after mixed UK PMIs GBP/JPY gains some positive traction in reaction to the upbeat UK Services PMI.

12:01 Silver price today: Silver falls further, according to FXStreet data Silver prices (XAG/USD) fell on Tuesday, according to FXStreet data.

11:45 EUR/GBP depreciates to near 0.8600 after mixed Eurozone and UK PMI figures The EUR/GBP cross pared its daily gains, trading lower around 0.8620 in European hours on Tuesday.

11:32 UK Preliminary Services PMI jumps to 54.9 in April vs. 53.0 expected The seasonally adjusted S&P Global/CIPS UK Manufacturing Purchasing Managers’ Index (PMI) fell sharply from 50.3 in March to 48.7 in April, missing the estimated 50.3 reading.

11:30 United Kingdom S&P Global/CIPS Services PMI registered at 54.9 above expectations (53) in April United Kingdom S&P Global/CIPS Services PMI registered at 54.9 above expectations (53) in April

11:30 United Kingdom S&P Global/CIPS Manufacturing PMI registered at 48.7, below expectations (50.3) in April United Kingdom S&P Global/CIPS Manufacturing PMI registered at 48.7, below expectations (50.3) in April

11:30 USD/CAD Price Analysis: Remains subdued near 1.3700 as US Dollar slips The USD/CAD pair remains feeble near the round-level support of 1.3700 in Tuesday’s European session.

11:30 United Kingdom S&P Global/CIPS Composite PMI climbed from previous 52.8 to 54 in April United Kingdom S&P Global/CIPS Composite PMI climbed from previous 52.8 to 54 in April

11:23 Pound Sterling eyes more downside on firm BoE rate cut prospects The Pound Sterling (GBP) remains vulnerable at around 1.2300 in Monday’s London session.

11:11 India Gold price today: Gold falls, according to MCX data Gold prices fell in India on Tuesday, according to data from India's Multi Commodity Exchange (MCX).

11:00 Eurozone HCOB Services PMI came in at 52.9, above expectations (51.8) in April Eurozone HCOB Services PMI came in at 52.9, above expectations (51.8) in April

11:00 Eurozone HCOB Composite PMI registered at 51.4 above expectations (50.8) in April Eurozone HCOB Composite PMI registered at 51.4 above expectations (50.8) in April

11:00 Eurozone HCOB Manufacturing PMI registered at 45.6, below expectations (46.5) in April Eurozone HCOB Manufacturing PMI registered at 45.6, below expectations (46.5) in April

11:00 US S&P Global PMIs Preview: Economic expansion set to keep momentum in April S&P Global will release the flash estimates of the United States (US) Purchasing Managers Indexes (PMIs) for April on Tuesday, a survey that measures business activity throughout the month.

10:32 German Preliminary Manufacturing PMI rises to 42.2 in April vs. 42.8 expected Germany’s manufacturing sector witnessed some improvement in the contraction in April while the services sector outperformed, the preliminary business activity report published by the HCOB survey showed Tuesday.

10:30 Forex Today: Major pairs stabilize ahead of key PMI data Here is what you need to know on Tuesday, April 23: Major currency pair fluctuate in relatively tight channels early Tuesday as investors await key data releases.

10:30 Germany HCOB Services PMI registered at 53.3 above expectations (50.6) in April Germany HCOB Services PMI registered at 53.3 above expectations (50.6) in April

10:30 Germany HCOB Manufacturing PMI came in at 42.2, below expectations (42.8) in April Germany HCOB Manufacturing PMI came in at 42.2, below expectations (42.8) in April

10:30 Germany HCOB Composite PMI above forecasts (48.6) in April: Actual (50.5) Germany HCOB Composite PMI above forecasts (48.6) in April: Actual (50.5)

10:25 EUR/USD extends holding pattern ahead of PMIs EUR/USD extends its holding pattern of the last few days, trading in the mid 1.0600s on Tuesday, prior to the release of potentially market-moving purchasing manager survey data.

10:16 USD/CHF holds positive ground above 0.9100, eyes on US PMI data The USD/CHF pair trades on a stronger note for the second consecutive day around 0.9125 during the early European session on Tuesday.

10:15 France HCOB Manufacturing PMI registered at 44.9, below expectations (46.9) in April France HCOB Manufacturing PMI registered at 44.9, below expectations (46.9) in April

10:15 France HCOB Services PMI came in at 50.5, above expectations (48.9) in April France HCOB Services PMI came in at 50.5, above expectations (48.9) in April

10:15 France HCOB Composite PMI rose from previous 48.3 to 49.9 in April France HCOB Composite PMI rose from previous 48.3 to 49.9 in April

09:09 Silver Price Forecast: XAG/USD attracts some sellers below $27.00 amid risk-on mood Silver price (XAG/USD) trades on a softer note for the second consecutive day around $26.95 on Tuesday during the early European session.

09:00 United Kingdom Public Sector Net Borrowing came in at £11.015B, above forecasts (£-8.9B) in March United Kingdom Public Sector Net Borrowing came in at £11.015B, above forecasts (£-8.9B) in March

08:48 EUR/USD Price Analysis: Tests the major level of 1.0650; followed by the nine-day EMA EUR/USD remains lackluster during the Asian trading hours on Tuesday, hovering near 1.0650.

08:02 India HSBC Manufacturing PMI unchanged at 59.1 in April India HSBC Manufacturing PMI unchanged at 59.1 in April

08:01 India HSBC Services PMI climbed from previous 61.2 to 61.7 in April India HSBC Services PMI climbed from previous 61.2 to 61.7 in April

08:01 India HSBC Composite PMI up to 62.2 in April from previous 61.8 India HSBC Composite PMI up to 62.2 in April from previous 61.8

08:00 Singapore Consumer Price Index (YoY) came in at 2.7, below expectations (3.1) in March Singapore Consumer Price Index (YoY) came in at 2.7, below expectations (3.1) in March

07:34 NZD/USD remains above 0.5900 amid hawkish Fed, Kiwi Trade Balance, US PMI eyed The NZD/USD pair moves slightly lower to near 0.5920 during the Asian session on Tuesday.

07:24 GBP/USD Price Analysis: Flat lines around mid-1.2300s, bearish potential seems intact GBP/USD holds steady on Tuesday amid subdued USD demand, albeit lacks bullish conviction.

06:41 USD/INR loses traction ahead of Indian and US PMI data The Indian Rupee (INR) gains ground on Tuesday, backed by likely equity inflows and US Dollar (USD) sales from state-run banks.

06:29 Australian Dollar maintains its position with a positive sentiment after PMI data The Australian Dollar (AUD) continues its upward trajectory for the second consecutive session on Tuesday, buoyed by improved risk appetite.

05:06 BoJ’s Ueda: Would like to leave some scope for adjustment by not pre-committing to a certain policy too much Bank of Japan (BoJ) Governor Kazuo Ueda commented on the Japanese wage negotiations and their implication on the central bank’s policy this Tuesday.

04:52 AUD/JPY clings to a psychological level with a positive sentiment AUD/JPY maintains stability on Tuesday following gains in the previous session.

04:25 USD/CAD trades on a softer note below 1.3700 ahead of US PMI data The USD/CAD pair extends its downside near 1.3695 despite lower crude oil prices.

04:16 PBoC sets USD/CNY reference rate at 7.1059 vs 7.1043 previous The People’s Bank of China (PBoC) set the USD/CNY central rate for the trading session ahead on Tuesday at 7.1059 as compared to the previous day's fix of 7.1043 and 7.2437 Reuters estimates.

03:55 Japan’s Suzuki: Government ready to respond appropriately to excessive FX moves Japanese Finance Minister Shunichi Suzuki offered some verbal intervention on Tuesday.

03:32 Japan Jibun Bank Services PMI: 54.6 (April) vs 54.1 Japan Jibun Bank Services PMI: 54.6 (April) vs 54.1

03:30 Japan Jibun Bank Manufacturing PMI registered at 49.9 above expectations (48) in April Japan Jibun Bank Manufacturing PMI registered at 49.9 above expectations (48) in April

03:23 WTI holds below $82.00 on easing Middle East tensions, hawkish Fed Western Texas Intermediate (WTI), the US crude oil benchmark, is trading around $82.00 on Tuesday.

02:28 AUD/USD rises on risk-on mood, upbeat PMIs The Aussie Dollar began the week on the front foot and registered gains against the US Dollar on Monday, gaining more than 0.54% as risk appetite improved.

02:22 EUR/USD steady near 1.0650 as markets gear up for PMI-heavy Tuesday The EUR/USD is testing the waters near 1.0650 after a quiet Monday saw the major pair flatline ahead of a densely-packed economic data docket.

02:12 GBP/USD remains on the defensive near 1.2350, investors await UK, US PMI data The GBP/USD pair remains on the defensive near 1.2350, the lowest since mid-November on Tuesday during the early Asian session.

02:12 Judo Bank Australian Composite PMI accelerates to its highest rate in two years at 53.6 Australia's Judo Bank Purchasing Managers Index (PMI) Composite rose to a 24-month high of 53.6 in April compared to the previous month's 53.3.

02:01 Australia Judo Bank Composite PMI: 53.6 (April) vs 53.3 Australia Judo Bank Composite PMI: 53.6 (April) vs 53.3

02:01 Australia Judo Bank Services PMI down to 54.2 in April from previous 54.4 Australia Judo Bank Services PMI down to 54.2 in April from previous 54.4

02:00 Australia Judo Bank Manufacturing PMI climbed from previous 47.3 to 49.9 in April Australia Judo Bank Manufacturing PMI climbed from previous 47.3 to 49.9 in April

00:32 NZD/USD Price Analysis: Bears hold sway, subtle signs of potential bullish reversal emerging The NZD/USD pair advanced to 0.5920 on Monday, reflecting a gain of 0.47%.

00:25 Gold price tumbles to one-week low as geopolitical tensions abate Gold prices plummet sharply and retrace last week's gains, down more than 2.50% as the Middle East's woes abate.

00:10 Dow Jones climbs on Monday as risk appetite lurches higher The Dow Jones Industrial Average (DJIA) is on the run into the top side to open the new trading week, with the index climbing into a five-day peak above 38,400.00.

00:00 South Korea Producer Price Index Growth (MoM) dipped from previous 0.3% to 0.2% in March South Korea Producer Price Index Growth (MoM) dipped from previous 0.3% to 0.2% in March

00:00 South Korea Producer Price Index Growth (YoY) rose from previous 1.5% to 1.6% in March South Korea Producer Price Index Growth (YoY) rose from previous 1.5% to 1.6% in March

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