Forex Today: Focus remains on geopolitics and central banks divergence


The upside momentum in the Greenback remained unabated, extending the move to fresh yearly highs around 106.20 amidst rising yields in a week that appears to be dominated by increasing geopolitical tensions, particularly in the Middle East.

Here is what you need to know on Tuesday, April 16:

The Greenback maintained its bullish bias and advanced to new 2024 highs near 106.20 when gauged by the USD Index (DXY) on Monday. On April 16, Building Permits, Housing Starts and Industrial Production are all due.

EUR/USD remained on the defensive and slipped back to fresh yearly lows near 1.0620. The Economic Sentiment measured by the ZEW survey in Germany and the euro bloc are expected on April 16.

GBP/USD closed Monday’s session barely changed around the 1.2450 zone. In the UK, the February labour market report is due on April 16.

Further gains propelled USD/JPY to a new 34-year peaks well past the 154.00 barrier. Next on tap in Japan will be the Reuters Tankan Index and Balance of Trade results on April 17.

AUD/USD maintained its negative sentiment well in place and challenged the 2024 lows in the 0.6450-0.6440 band. The next release of note in Oz will be the Westpac Leading Index on April 17.

USD/CAD kept the move higher well and sound, reaching new highs near the 1.3800 yardstick. On April 16, Canadian Inflation Rate and the BoC’s Core Inflation Rate will take centre stage.

USD/CNH extended its consolidative mood near 7.2600, resuming the downside following Friday’s decent advance. On the Chinese calendar, the Q1 GDP Growth Rate, Industrial Production, Retail Sales and the Unemployment Rate are all due on April 16.

WTI dropped for the third straight session on dwindling geopolitical jitters and shrinking probability of a Fed’s rate cut in the summer.

Gold prices rapidly left behind Friday’s pullback and re-focused on the area of the all-time high past $2,400 per troy ounce. The rally in Silver prices resumed its uptrend and retargeted Friday’s peaks near the $30.00 mark per ounce.

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