Sun, April 21, 2024

USD Hits 104, NASDAQ Peaks, GBP Gains 0.6%

With the cryptocurrency market's rise, Saxo's crypto offerings have increased in demand.

Quick Look

  • The US Dollar Index hovers around 104.00 amidst key financial events.
  • Notable currency movements include USD/JPY, reaching 150.50, and GBP/USD, gaining 0.6% last week.
  • NASDAQ 100, S&P 500, and Dow Jones 30 hit new all-time highs, reflecting bullish stock market sentiment.
  • Canadian CPI shows a decrease, while US inflation data presents a slight increase, influencing monetary policy outlooks.
  • Upcoming events: Speeches by financial leaders, US economic data releases, and bond yield trends to watch.

The Forex market is gearing up for a week filled with significant events and data points, likely to have a substantial impact on currency valuations and investor strategies. The US Dollar Index’s fluctuation around the 104.00 mark sets the stage for a potentially volatile period. Key events on the horizon include a speech by ECB President Christine Lagarde and the release of January New Home Sales Change data. Additionally, the US Treasury will hold 2-year and 5-year note auctions against a backdrop of the benchmark 10-year US Treasury bond yield lingering just below 4.25%.

USD/JPY Tops 150, GBP/USD Up 0.6%

Currency pairs have shown varied performance early Monday, with USD/JPY climbing above 150.00, signalling strength against the Japanese Yen. The EUR/USD pair remains in a consolidation phase above 1.0800, while the GBP/USD edges above 1.2650, reflecting last week’s 0.6% gain. The Australian and New Zealand Dollars also show noteworthy movements, with the AUD/USD stabilizing around 0.6550 and the NZD/USD retreating toward 0.6150.

NASDAQ Hits High, Fed Cut Chances Fall

The stock market’s bullish sentiment is evident. Specifically, the NASDAQ 100, S&P 500, and Dow Jones 30 indices have reached new all-time highs. Consequently, market expectations for a March rate cut by the Federal Reserve have diminished. They now stand at a 4% chance, a decrease from 10%. Additionally, inflation data from Canada and the US add complexity to the monetary policy landscape. For instance, the Canadian CPI annualized rate has fallen to 2.9%. Meanwhile, the US core personal consumption expenditures price index has seen a slight increase of 0.1% over the past month.

Mixed Signals for USD, NASDAQ Soars

Technical analysis offers mixed signals for the US Dollar Index, suggesting possible short-term bullish momentum amidst a mixed long-term trend. The NASDAQ 100 Index’s ascent to record highs indicates a bullish weekly close. For currency traders, key levels to watch include the AUD/USD’s resistance at $0.6590 and USD/JPY’s support at ¥149.70. The NZD/JPY pair’s close near 9-year high highlights the dynamic interplay between currency strengths, influenced by Japan’s prolonged yen weakness and New Zealand’s high-interest-rate environment.

Markets Eye US Data, Fed Speeches

This week, financial markets are attuned to several critical developments. Monday’s focus is on the USD Index and new home sales data alongside influential speeches. Tuesday will bring additional US economic data, potentially impacting currency trends and market sentiment. Investors are closely monitoring the interplay between currency movements, stock market trends, and inflation data, seeking profitable trading opportunities amid the evolving financial landscape.

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