Forex Signals Brief for April 13: Attention Shifting to Producer Inflation Today
Yesterday’s Market Wrap
Yesterday started pretty quietly, with major currencies experiencing minimal changes, while the US dollar remained relatively steady in the US session, after a pullback on Tuesday. But the volatility picked up after the release of the US consumer inflation report for March. Expectations were for a cool off to 5.2% in March from 6.0% in February, but the headline number fell further to 5.0%.
That sent the USD 60-80 pips lower across the board, while safe havens such as Gold and the JPY rallied harder, but the increase in core CPI (consumer price index) YoY from 5.5% to 5.6% shows that most of the decline in the headline number has come from lower energy prices, while prices for consumer goods continue to go up. So, the decline in the USD stalled after the initial knee-jerk reaction. Bank of Canada held interest rates unchanged at 4.50%, although now the question remains when will they start to cut them back.
Today’s Market Expectations
Today started with the employment report from Australia released early this morning. New employment was expected to slow, while the unemployment rate was expected to tick higher from 3.5% to 3.6%. UK GDP was expected to slow down to 0.1% in February from 0.3% in January. Although, markets will be more concentrated on US producer inflation PPI numbers, with the headline expected to fall flat at 0.0% in March, while core CPI is still expected to increase by 0.2%.
Forex Signals Update
Yesterday was quiet during the European session but the volatility picked up as the USD resumed the decline again after the US inflation report. We opened seven trading signals, mostly short on the USD, closing the day with fiving winning signals.
GOLD ReturnsAbove $2,000
Gold retreated below the $2,000 level earlier this week, after the price had reached $2,033 last week. But the 200 SMA (green) held as support n the H4 chart and the price bounced off that moving average. We have had a few buy Gold signals recently, which have closed in profit.
XAU/USD – 240 minute chart
MAs Turn into Support for [[USD/JPY]]
USD/JPY has turned bullish again this week, as the new BOJ governor Ueda seems to be keeping the same path as the previous governor Kuroda, which means very accommodative. That has turned the JPY bearish so this pair has been pushing higher, and yesterday we opened two buy USD/JPY signals, both of which closed in profit before the retreat.
USD/JPY – 60 minute chart
Cryptocurrency Update
BITCOIN Retreats Below $30,000
It seems like the bullish momentum in cryptocurrencies continues as Bitcoin resumed the uptrend in the last two days after achieving new highs in March. The price stalled below $30,000 for some time but buyers come back and pushed BTC above this major level this week, hitting our take profit target for the buy Bitcoin signal. Although btc retreated below this major level yesterday.
BTC/USD – 240 minute chart
ETHEREUM Approaching $2,000
Ethereum broke above $1,900 yesterday after experiencing strong buying momentum again this week, following the consolidation in the previous week and our buy ETH/USD signal hit the take profit target as it pushed above $1,900. Moving averages have turned into support on the H4 chart with a decent support zone of around $1,830.
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