Noor Trends News, Technical Analysis, Educational Tools and Recommendations
The US dollar declined more during a lacklustre US session as Wall Street indexes rose. The S&P 500 increased 0.09%, the Nasdaq declined 0.29%, and the Dow Jones increased by 0.20%. The 10-year bond rate dipped to 3.50%, but the 2-year yield rose to 4.12%.
The debt-ceiling turmoil, upcoming important data, and events are all expected to contribute to continued high volatility in the US Treasury market. The curve’s divergence demonstrates that the yield on the difference between the one-month and three-month bills is at an all-time high.
Microsoft, Alphabet, Visa, PepsiCo, Novartis, McDonald’s, UPS, Verizon, Texas Instruments, General Electric, UBS, Halliburton, and Spotify will all report profits on Tuesday, making it a hectic day. The S&P/Case-Shiller Home Price Index and New Home Sales are two economic indicators that are due from the US. The Thursday GDP figure, which contains significant consumer inflation data, is the main topic of discussion. The FOMC meets the next week. Rates are anticipated to rise by 25 basis points and a pause will be declared by the Fed.
The US Dollar Index fell to 101.35 reaching weekly lows. It is pointing south, looking vulnerable. USD/CHF posted the lowest daily close since January 2021, below 0.8900.
EUR/USD rose to the 1.1050 zone, approaching year-to-date highs supported by hawkish comments from European Central Bank (ECB) officials ahead of the May 4 meeting.
GBP/USD benefited from a weaker Dollar approaching 1.2500. The trend is up. The UK will inform Public Sector Net Borrowing on Tuesday. EUR/GBP rose for the third day, boosted by higher Eurozone bond yields and is near April highs.
USD/CAD finished flat at 1.3540. The rally faces strong resistance at 1.3565, and a correction seems likely.
Gold rose modestly after holding above last week’s lows, reaching $1,990. Silver retook $25.00 after bottoming at $24.75.
Cryptocurrencies performed mixed. Bitcoin gave signs of reaching an interim bottom after rebounding from monthly lows below $27,000 to $27,500. An improvement in market sentiment helped crude oil prices. WTI rose 1%, moving closer to $80.00.
Investors will focus on earnings reports while preparing for crucial economic events later in the week, including Australian inflation, US and Eurozone GDP, US Core PCE and the Bank of Japan meeting.
Also Read:
Experts challenge de-dollarization hypothesis
Optimism from China, Iraq drives crude oil price up
Tesla drags Nasdaq lower ahead of tech earnings
