This is what you need to know to trade today tuesday april 19:
Rising US Treasury yields and cautious market sentiment allowed the US dollar to outperform its rivals at the start of the week. During the Asian session on Tuesday, the US dollar index DXY hit its highest level since April 2020 at 101.02 before pulling back modestly at the start of the European session. The US economic calendar will feature data on housing starts and building permits for the month of March. Later in the day, Chicago Fed President Charles Evans will also deliver a speech.
Speaking at a virtual event held by the Council on Foreign Relations late Monday, St. Louis Fed President, James Bullard reiterated that the Fed must raise the monetary policy rate to 3.5% before the end of the year in order to fight inflation. Bullard added that he is in favor of starting the balance reduction at an upcoming meeting. After these comments, benchmark 10-year US Treasury bond yield rose to highest level since December 2018 and approached 3%.
Meanwhile, the Euro Stoxx 600 Index is down 0.9% in European morning trading and US stock index futures are trading flat on the day, suggesting markets remain risk averse early Tuesday.
The EUR/USD closed in negative territory on Monday and remains relatively calm below 1.0800 in the European session on Tuesday. French Finance Minister Bruno Le Maire said earlier in the day that an embargo on Russian oil was underway and has added that they hoped to convince European partners to ban Russian oil in the coming weeks.
The GBP/USD lost almost 50 pips on Monday but manages to hold above 1.3000 so far today.
Driven by rising US bond yields, the USD/JPY has risen to its highest level since May 2002 at 128.32 on Tuesday. At time of writing, the pair is consolidating its gains near 128.00. Commenting on the devaluation of the JPY, “an excessively weak yen or a rapidly weakening yen may have a more negative impact, but a weak yen is basically positive overallJapanese Finance Minister Shunichi Suzuki said.
The Prayed rose to $2,000 on Monday, but changed direction. At time of writing, XAU/USD remains flat on the day near $1,980.
The Bitcoin it bounced back and appears to have stabilized above $40,000 after falling to its lowest level in over a month at $38,550 on Monday. The ethereum gained over 2% on Monday and managed to recapture the $3,000 level. ETH/USD is posting small daily losses near $3,050 at the start of the European session on Tuesday.
Source: Fx Street
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