Here is what you need to know on Tuesday, April 12:
In the absence of high-tier macroeconomic data releases on Monday, the dollar capitalized on safe-haven flows and continued to gather strength against its rivals. Ahead of the ZEW sentiment survey results for the euro area and Germany, markets remain risk-averse early Tuesday. Later in the day, the Consumer Price Index (CPI) data will be featured in the US economic docket. Meanwhile, the 10-year US Treasury bond yield is sitting at its highest level since December 2018 above 2.8%. A 10-year US Treasury note auction will be held at around 1700 GMT.
US Consumer Price Index March Preview: Federal Reserve policy affirmed.
The UK's Ministry of Defence said on Tuesday that they were expecting fighting in eastern Ukraine to intensify over the next two or three weeks. Earlier in the day, Ukrainian President Volodymyr Zelenskyy noted that they take the threat of Russia using chemical weapons seriously. Additionally, Germany's foreign minister announced on Monday that EU foreign ministers had agreed to ramp up weapon deliveries to Ukraine. Reflecting the sour market mood, US stock index futures are down between 0.3% and 0.5% in the European morning.
EUR/USD recovered to 1.0950 on Monday but turned south in the second half of the day to close below 1.0900. The pair stays under modest bearish pressure early Tuesday. The ZEW survey is expected to unveil a deterioration in Economic Sentiment in the eurozone and Germany in April. Germany's Destatis announced earlier in the day that the annual HICP inflation climbed to 7.6% in March, matching the flash estimate and the market expectation.
GBP/USD stays on the back foot and edges lower toward 1.3000. The UK's ONS reported on Tuesday that the ILO Unemployment Rate declined to 3.8% in three months to February. Wage inflation, as measured by Average Earnings Including Bonus, rose to 5.4% on a yearly basis from 4.8% in January.
USD/JPY continues to push higher and trades at its strongest level since June 2015 above 125.50. The benchmark 10-year US Treasury bond yield, which gained more than 13% last week, is already up 4% this week.
Gold touched a fresh multi-week high near $1,970 on Monday on the back of safe-haven flows but retreated below $1,960. XAU/USD fluctuate in a relatively tight channel at around $1,955 in the European session.
Bitcoin fell to its lowest level in nearly a month on Monday and trades within a touching distance of $40,000 early Tuesday. Ethereum tests the $3,000 handle after losing 7% on Monday.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD clings to recovery gains near 1.0850 ahead of Fedspeak
EUR/USD trades in positive territory near 1.0850 on Friday following a four-day slide. China's stimulus optimism and a broad US Dollar correction help the pair retrace the dovish ECB decision-induced decline. All eyes remain on the Fedspeak.
GBP/USD pares UK data-led gains at around 1.3050
GBP/USD is trading at around 1.3050 in the second half of the day on Friday, supported by upbeat UK Retail Sales data and a pullback seen in the US Dollar. Later in the day, comments from Federal Reserve officials will be scrutinized by market participants.
Gold at new record peaks above $2,700 on increased prospects of global easing
Gold (XAU/USD) establishes a foothold above the $2,700 psychological level on Friday after piercing through above this level on the previous day, setting yet another fresh all-time high. Growing prospects of a globally low interest rate environment boost the yellow metal.
Crypto ETF adoption should pick up pace despite slow start, analysts say
Big institutional investors are still wary of allocating funds in Bitcoin spot ETFs, delaying adoption by traditional investors. Demand is expected to increase in the mid-term once institutions open the gates to the crypto asset class.
Canada debates whether to supersize rate cuts
A fourth consecutive Bank of Canada rate cut is expected, but the market senses it will accelerate the move towards neutral policy rates with a 50bp step change. Inflation is finally below target and unemployment is trending higher, but the economy is still growing.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.