GBP/USD moves to fresh sesison lows on firm US dollar.

GBP/USD is sinking as a firm US dollar takes the lead. The Fed sentiment is a driving force along with the risks associated with the Russin crisis. 

GBP/USD is down some 0.22% and has fallen from a high of 1.3064 to a low of 1.3025. The US dollar is taking the lead on Easter Monday in holiday conditions with plenty at stake for the week ahead in both economic data, central bank sentiment and the Ukraine crisis. 

There are still no signs of progress in peace talks between the two nations. From the weekend, Reuters reported that the Ukrainian Foreign Minister Dmytro Kuleba said there had not been any recent diplomatic communications between Russia and Ukraine at the level of their foreign ministries and that the situation in the port of Mariupol, which he described as “dire”, may be a “red line” in the path of negotiations.

Meanwhile, the markets will be keeping an ear to the ground for Fed speak. Firstly, St. Louis Fed President and FOMC member James Bullard are slated and would be expected to offer further insight into the likely monetary policy action by the Fed. However, the mega event will be the speech from Fed Chair Jerome Powell, which is due later this week.

”We are of the view that the Fed is broadly in-sync with the move toward the vicinity of neutral by the end of 2022, with Governor Brainard supporting that view recently. Chair Powell’s remarks in an IMF panel on the global economy will get the focus of the attention,” analysts at TD Securities explained. 

”While the Fed is signalling its intent to reach neutrality by year-end, and to start an aggressive QT regime, outflows from gold markets have been scarce as participants are happy to retain some optionality against the Fed’s stated plan amid growth concerns,” the analysts added. 

Meanwhile, the sentiment around the Bank of England is dovish from the dovish hike delivered in March on around concerns over the growth outlook. Nevertheless,  stronger-than-expected inflation over the coming weeks could add pressure to act more decisively.

AUD/USD drops towards 0.7350 on mixed Chinese data, risk-aversion.AUD/USD is dropping towards 0.7350 on mixed Chinese economic data, with the Q1 GDP numbers outpacing estimates. The pair is in a significantly strong downtrend amid a firmer US dollar and broad risk-aversion. However, given it is Easter Monday, there perhaps will not be much in the way of price action.


EUR/USD: Bears in control, but weekly M-formation is menacing.The euro is bobbing along the bottom of the bear cycle range and likely has more to go to the downside in order to mitigate the imbalance left behind from the March 2020 rally down in the 106 areas. The M-formation on the weekly chart contradicts the bearish bias. 


Gold hits five-week highs as Easter Monday sees flight to safety.Gold Price eyes an upside to recapture $2,000 amid a flight to safety. Elevated inflation, recession risks and the Russia-Ukraine war boost safe-haven appeal. The speech from Fed Chair Jerome Powell will keep investors busy this week.

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Will Shiba Inu price rally to $0.00005 this week.Shiba Inu price coils up as it approaches a crucial barrier, delaying the breakout from a bottom reversal pattern. SHIB needs the go-sign from the big crypto to move this move higher or the gains are going to come undone.

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