This is what you need to know to trade today Monday April 18:
Trading conditions remain weak on Easter Monday, but the dollar remains strong against its rivals. The US Dollar Index, which posted its highest weekly close since March 2020, continues to rise towards 111.00 on the back of rising US Treasury yields in European morning. The stock markets of the old continent will be closed this Monday. US stock and bond markets will trade on regular hours, but the economic docket will not feature any macroeconomic data releases.
Earlier in the day, data from China revealed that the Gross Domestic Product (GDP) grew at an annualized pace of 4.8% in the first quarter, beating the market expectation of 4.4%. On a negative note, retail sales in China contracted 3.5% annually in March, compared to analysts’ estimate of a 1.6% decline.
Meanwhile, the headlines surrounding the conflict between Russia and Ukraine reveal that fighting continues in various parts of Ukraine. According to the latest news, multiple explosions were heard early Monday in the Ukrainian regions of Lviv and Dnipro. Some intelligence reports suggest that Russia is preparing to step up military aggression in Mariupol.
The EUR/USD lost more than 100 pips last week as the euro faced heavy selling pressure after the European Central Bank left its monetary policy settings unchanged. The pair is trading in a relatively tight range near 1.0800 at the start of the European session.
The GBP/USD managed to post small weekly gains but seems to have lost its traction amid broad dollar strength. The pair was last seen trading in negative territory near 1.3020.
The USD/JPY it extended its rally to a fresh 20-year high of 126.79 during Asian trading hours before entering a consolidation phase near 126.60. Earlier in the day, Bank of Japan (BOJ) Governor Haruhiko Kuroda noted that he has not changed his view that a weak yen is positive for the economy as a whole.
The Prayed It retains its bullish momentum and is trading at its highest level in more than a month near $1,990. For the past two weeks, the yellow metal has been shrugging off rising US Treasury yields and finding demand as a safe haven and hedge against inflation.
The Bitcoin remains under modest selling pressure after dipping below the key $40,000 level on Sunday. The ethereum It broke below $3,000 over the weekend and was last seen at its lowest level in almost a month at $2,920, losing more than 2% on the day.
Source: Fx Street
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