Sentiment improved after Senate Democratic Leader Chuck Schumer backed the Republican stopgap funding bill to prevent a government shutdown, despite party reservations. That is a positive. The trade/tariff situation remains the problem for the economy/markets. Yesterday, Pres. Trump escalated trade tensions by threatening a 200% tariff on European alcoholic beverages in response to the EU imposed a 50% tariff on American whiskey in response to U.S. steel and aluminum tariffs. Investors worry that the dispute could fuel inflation and increase recession risks. Recipricol tariffs will go into effect on April 2 with autos the main target, but according to the Pres. they will be across the board. Buckle up.
Technically, the EURUSD moved lower yesterday, dipping below the 100 hour MA in the procecss (blue line). The low price stalled ahead of the 618% at 1.08174 the low reached 1.0821 and bounced. Today after a dip in the Asian Pacific session, the price bounced higher and extended above back above the 100 hour MA at 1.0875.
The GBPUSD is modestly lower today (-0.06%) and trades within a relatively narrow trading range of 41 pips (that comared to a 83 pip average over the last month or so of trading).
Despite the miss, the lows today have been within a swing area between 1.29065 and 1.2943. In between is the 61.8% of the move down from the September 2024 high. The price action over the 4 trading days has traded above that swing area, but has held above the low of the swing area (mostly - on Tuesday, the price started below that area).
Looking around the markets, the US indices are rebounding in early pre-market trading. Yesterday, the Dow industrial average fell -1.30%, the S&P fell -1.39%, and the NASDAQ index fell -1.96%. Today in premarket trading, the:
Dow industrial average is up 240.43 pointsS&P index is up 51.23 pointsNASDAQ index is up 237.50 point2 year 3.975%, +2.2 basis points5-year 4.064%, +3.7 basis points10 year 4.314%, +3.8 point basis points30 year 4.68%, +4.2 basis points
in the European equity markets, the major indices are higher:
German DAX, +1.91%France's CAC +1.19%UK's FTSE 100 +0.64%Spain's Ibex +1.15%Italy's FTSE MIB +1.26%looking at other markets:
Crude oil is higher by $0.51 or 0.77% at $67.06Gold is up nine dollars and $0.98 or 0.23% at $2998.95. The high price today has extended above the $3000 low for the first time rising to $3004.94. Silver is up $0.11 or 0.33% at $33.93Bitcoin is up $2300 and $83,421 This article was written by Greg Michalowski at www.forexlive.com. Read More Details
Finally We wish PressBee provided you with enough information of ( The USD is mixed to start the FX trading day. )
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