News for 25th April 2023

My FX List
April 25, 2023
  • The US Dollar is continuing its downward trend, as investors are more confident that the Federal Reserve will raise interest rates one more time before ending the cycle, followed by rate cuts later in the year. 
  • Those who follow trends may consider shorting the US Dollar and going long on the EUR/USD or GBP/USD currency pairs, as both are currently experiencing long-term bullish trends, with the EUR/USD being the more promising option as it is close to its long-term high. 
  • During the Asian trading session, the Euro has shown strength while the Australian Dollar has weakened.
  • Soft commodities are performing well, with the Sugar ETF CANE and Cocoa ETN NIB achieving new multi-year high prices in recent days.
  • BOJ Governor Ueda has affirmed that the current monetary easing policy is appropriate, but the bank remains prepared to increase interest rates in the event of unexpected wage growth and inflation acceleration.
  • Switzerland recorded a wider trade surplus of 4.53B CHF in March, following a 19.9% m/m rise in exports and a 15.9% m/m increase in imports.
  • The UK’s public sector net borrowing for March totaled 21.5B, marking the second-highest March borrowing on record, due to ongoing government energy support schemes.
  • Despite attempts by Asian session traders to extend the uptick from the previous US session, markets had ample time to factor in growth concerns as there were few high-profile data releases.
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