The Dow Jones Industrial Average (DJIA) surged over 300 points or 0.80% on Tuesday as softer-than-expected United States (US) economic data suggested the need for lower interest rates, as witnessed by the fall of US Treasury yields.
Goldman Sachs revises its USDCAD forecasts lower due to robust Canadian economic data and a supportive fiscal policy, expecting the Canadian dollar to outperform the U.S. dollar through 2025.
The EUR/CAD pair was seen trading around the 1.5800 zone after the European session on Tuesday, showing little movement on the day after a slight decline. Despite the minor dip, the overall technical setup stays bullish.
The EUR/USD is flashing a bullish tone on Tuesday’s session after the European close, even as the pair slightly retraced from earlier highs and now trades near the mid-1.13 to low-1.14 area. Despite a modest dip during the session, broader technical signals continue to suggest upside potential.
The Pound Sterling (GBP) depreciates against the US Dollar (USD) and falls after testing the year-to-date (YTD) high of 1.3443. However, it fails to remain above 1.34 as it extends its losses. At the time of writing, GBP/USD trades at 1.3379, down 0.29%.
The USD/CAD pair moves slightly higher to near 1.3855 during North American trading hours on Tuesday. The Loonie pair gains as the US Dollar (USD) ticks higher, with investors turning slightly optimistic on de-escalation in the trade war between the United States (US) and China.
Citing two sources familiar with the matter, Reuters reported on Tuesday that China has decided to waive the 125% tariff on ethane imports from the United States imposed earlier this month.
US consumer sentiment extended its decline in April, as the Conference Board’s Consumer Confidence Index fell from 93.9 (revised from 92.9) to 86.0—its weakest reading since April 2020.
The USD/JPY pair ticks higher to near 142.30 during the North American session on Tuesday. The pair edges up as the US Dollar (USD) steadies ahead of the United States (US) JOLTS Job Openings data for March, which will be published at 14:00 GMT.
United States (US) Treasury Secretary Scott Bessent said on Tuesday that President Donald Trump is creating "strategic uncertainty" in trade negotiations, per Reuters.
The Japanese Yen (JPY) weakened by 0.5% against the dollar, underperforming even fellow haven currencies, as markets brace for soft domestic data and upcoming US-Japan trade negotiations.
Pound Sterling (GBP) soft, down 0.3% against the US Dollar (USD) and trading in tandem with EUR in an environment of broad-based USD strength, Scotiabank's Chief FX Strategist Shaun Osborne notes.
Euro (EUR) is soft, down 0.3% against the US Dollar (USD) and a mid-performer among the G10 in an environment of broad-based USD strength, Scotiabank's Chief FX Strategist Shaun Osborne notes.
Silver price (XAG/USD) trades higher to near $33.30 during European trading hours on Tuesday. The white metal gains as investors start doubting whether de-escalation in the trade war between the United States (US) and China is underway.
The Canadian election results brought disappointment for pretty much everyone—the Liberals won, but are short of a majority, the Conservatives saw a jump in popular support but their leader failed to hold his own riding while both the NDP and Bloc lost heavily, Scotiabank's Chief FX Strategist Shaun
The US Dollar Index (DXY), which tracks the performance of the US Dollar (USD) against six major currencies, is having a knee jerk reaction on the back of comments from United States (US) Treasury Secretary Scott Bessent and White House Press Secretary Karoline Leavitt.
The USD is tracking a little higher on the day so far, reversing some of yesterday’s losses, following news that President Trump will make some concessions on auto tariffs due to come into effect on May 3rd.
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