Forex News for 7th April 2023
- Bitcoin has been consolidating around $28000 since March, after its rally during the banking crisis. The price has been fluctuating between $26300-$29300 and there is a possibility of a breakout in either direction.
- The unemployment rate in the US has remained steady at 5% in March, with the addition of 34.7k jobs. The initial estimate suggested a slightly higher unemployment rate of 5.1%, which is in line with the recent easing of US job data.
- The US dollar is showing signs of recovery and USD/CAD is on track for a third consecutive day of gains.
- With an extended bank holiday weekend approaching, the British Pound is trading within a tight range against other major currencies, with the market slowing down.
- Later today, there will be a significant data release – the latest US Jobs Report or nonfarm payrolls, which traders need to be aware of. Friday’s release is of particular interest after two earlier reports showed an unexpected weakening of the US jobs market.
- According to Kim Kinnaird, director at Halifax Mortgages, the UK housing market is showing resilience, with mortgage rates being the primary driver behind the market’s upward trend.
- The gold market appears to be hesitant after its rally above $2000 on Monday. With a large disconnect between Federal Reserve speakers and money markets, further guidance is needed, possibly in the form of economic data. If the NFP print exceeds expectations, the USD may gain more support, leaving spot gold vulnerable.
- The US Dollar saw an upward movement overnight, which is a departure from recent price action.
- The soft US data caused a dip in Treasury yields and equity markets also declined. Typically, bad news has been interpreted as good news for equities, with hopes that the Federal Reserve might ease up on tightening policies. Although Treasury yields reflected this perspective to some extent, the US Dollar found some support.