This is what you need to know to trade today tuesday april 5:
Risk sentiment continues to improve at the start of the European session, although a sense of caution prevails amid further sanctions talk of the West for Russian atrocities against Ukrainian civilians.
Investors are also weighing expectations from the Fed, versus the inversion of the US Treasury yield curve. Meanwhile, investors are also digesting the optimistic turn from the Reserve Bank of Australia (RBA) after the central bank withdrew its promise of “patience” on inflation developments.
Asian markets trade moderate gains, hitting highest level in five weeks, despite the holidays in China and Hong Kong. The previous day’s rally in tech stocks on Wall Street buoyed sentiment during the Asian session. US stock futures, however, move defensively, reflecting investor caution because of the war in Ukraine and the increase in oil prices.
Among other developments, Reuters reported on Monday that The United States prevented the Russian government from paying its sovereign debt holders more than $600 million of reserves held by US banks.
US Ambassador to Poland Mark Brzezinski will sign an agreement with Polish Defense Minister Mariusz Blaszczak to purchase 250 upgraded M1A2 tanks and ammunition, recovery and support vehicles, GPS receivers and other equipment.
Meanwhile, the Ukrainian president Volodymyr Zelenskyy will speak Tuesday at a United Nations Security Council meeting. (UN) on the conflict in his country.
The EUR/USD consolidates Monday’s heavy losses around 1.0970 at the start of the europe session. Recession fears in the euro zone weigh on the common currency amid possible EU sanctions on Russian gas imports.
The GBP/USD is showing resistance above 1.3100, amid stable US dollar and soft optimism. The renewed rally in US Treasury yields could cap the pair’s rise.
The USD/JPY is licking its wounds near 122.50, as the Japanese yen strengthens after verbal intervention from BoJ Governor Haruhiko Kuroda. Kuroda said that the central bank “we will offer to buy an unlimited number of 10-year JGBs if a rise in long-term interest rates is quick“.
The price of gold is accelerating earlier gains but remains in a tight range around $1,930. The rebound in Treasury yields could limit attempts to the upside in the yellow metal ahead of the US ISM and S&P Global Services PMIs. Various speeches by Fed members will also be closely watched ahead of Wednesday’s Fed minutes.
The USD/CAD It is trading at daily lows around 1.2475 as the Canadian dollar benefits from rising oil prices courtesy of the crisis in Ukraine. The BoC Business Outlook Survey revealed that Canadian companies expect average inflation to remain elevated over the next two years.
The Bitcoin is struggling to recapture the $47,000 level so far on Tuesday, while the ethereum it remains stable just above $3,500. Rippl is on the defensive near $0.8250.
Source: Fx Street
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