After a dull start to the crucial week, market players witness volatility during early Tuesday as traders recollect dovish bias for the Fed ahead of the key US inflation data. The same joins the downbeat Treasury bond yields to weigh on the US Dollar as the risk appetite improves.
While the softer US Dollar allows commodities and Antipodeans to remain firmer, the upbeat UK jobs report helps the GBPUSD pair to become one of the biggest gainers among the G10 currency pairs, just next to the USDCHF. That said, the absence of any change in the previously downbeat German inflation fails to tame the EURUSD as it refreshes a three-week high.
Elsewhere, USDJPY struggles to cheer the US Dollar's weakness amid downbeat yields and mixed concerns about the BoJ, not to forget downbeat Japan business sentiment data.
It should be noted that Gold and Crude both reverse the week-start losses whereas Cryptocurrencies have an additional reason to tease BTCUSD and ETUSD buyers.
Following are the latest moves of the key assets:
Markets turn active ahead of the key US inflation numbers, despite mixed feelings about the Fed keeping the risk-on mood intact. In doing so, the traders seem to brace for a hawkish halt from the US central bank and weigh on the US Dollar while cheering China’s rate cut and the strong UK employment numbers.
Elsewhere, Japan sentiment figures and the mid-tier Aussie data fail to impress JPY and the AUD traders respectively, even as the USDJPY and AUDUSD remain firmer. That said, GBPUSD hails upbeat UK data amid hawkish BoE bets whereas EURUSD ignores unimpressive inflation clues and recession woes to remain firmer.
Gold price again aims for a $1,970 hurdle while Oil price rebounds from the multi-day low to print the first daily gains in four.
BTCUSD and ETHUSD cheer US policymakers’ efforts to topple Gary Gensler, as well as upbeat developments in China, to pare recent losses.
While clues of the Fed’s next moves and second-tier data from the Eurozone and the UK may entertain the market players, major attention will be given to the US Consumer Price Index (CPI) and the Core CPI to determine near-term market performance. Also important will be a speech from BoE Governor Andrew Bailey.
May the trading luck be with you!
