Home News Forex News for 7th April, 2023 Forex News for 7th April, 2023
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April 7, 2023
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- Bitcoin has remained relatively stable around $28,000 since its surge in March during the banking crisis. The price has been fluctuating between $26,300 and $29,300 since March 18, and it could break out in either direction.
- In March, the employment data showed an increase of 34.7k jobs, causing the unemployment rate to remain unchanged at 5%. The initial estimates projected the unemployment rate to reach 5.1%, which is consistent with the easing US jobs data this week.
- The US Dollar ticked up overnight in a move that goes against the grain of recent price action. Treasury yields dipped again on soft US data and equity markets also lost ground on the news. The trend of late has seen bad news being interpreted as good news for equities in hopes that it might lead to the Federal Reserve taking its foot off the tightening pedal.
- Treasury yields reflected this perspective of a less hawkish Fed to some degree, but the US Dollar found some support.
- The US dollar is rebounding, leading to USD/CAD gaining for the third day in a row.
- The British Pound is trading within a narrow range compared to most other significant currencies. The market is slowing down as the extended bank holiday weekend approaches.
- A significant data release, the US Jobs Report or nonfarm payrolls, is set to be released later today. Traders should keep an eye on it, especially after two US employment reports released this week showed an unexpected weakening of the jobs market.
- According to Kim Kinnaird, director at Halifax Mortgages, the UK housing market is showing resilience after the sharp downturn at the end of 2022. The report highlights the easing of mortgage rates as the primary driver of the market’s recovery.
- After Monday’s rally above the $2000 level, gold markets seem uncertain due to the discrepancy between Federal Reserve speakers and money markets. Economic data may provide further guidance, and if the NFP print surpasses expectations, it could result in the 12th consecutive print above forecasts, providing additional support for the USD and making spot gold more vulnerable.
