News for 25th April 2023

  • The US Dollar’s decline has resumed aligning with its long-term bearish trend as the market becomes convinced that the Fed will make one last 25 bps rate hike at its next meeting. This will be followed by rate cuts later in the year. 
  • Trend traders may consider opening a short trade, waiting for the greenback to weaken further. A long position in the EUR/USD or GBP/USD currency pairs may be profitable, both of which are in a confirmed long-term bullish trend. 
  • The EUR/USD pair may be more reliable as it is closer to its long-term high. The Euro appears to be the strongest major currency in the Asian session, while the Australian Dollar is the weakest.
  • In recent days, there has been a surge in soft commodity prices. Both the Sugar ETF CANE and Cocoa ETN NIB have reached new multi-year high prices.
  • Switzerland saw its trade surplus increase from 3.31B CHF to 4.53B CHF in March, with exports surging by 19.9% m/m and imports rising by 15.9% m/m.
  • During the Asian session, traders attempted to sustain the uptrend from the U.S. session, but with little high-impact data on the horizon, markets had ample time to price in their concerns regarding growth.
  • At the beginning of London session trading, the AUD broke below the lows of the previous US session and established new intra-week lows with minimal pullback.
  • BOJ Governor Ueda has affirmed that maintaining monetary easing is the right decision at the moment, but he also expressed the BOJ’s readiness to increase interest rates if inflation and wage growth exceed expectations.
  • The Australian dollar plunged below its U.S. session lows and established new intra-week lows with limited bounce-back as the London session began.
  • The U.K. has recorded its second-largest March borrowing on record at 21.5B as the government continues to provide support for energy schemes.