Foreign exchange markets particularly saw intense action on Tuesday. The EUR/USD pair bounced back, snatching up almost all the losses it had incurred earlier this week. This upheaval provided opportunity for the Greenback’s demand to fade, letting the Euro pick up strength and recover some of those recent losses. Most importantly, the EUR/USD has now broken below the key psychological 1.1200 level, breaking the trading momentum to the upside.
The rebound in the EUR/USD pair is a calculated and strategic response to recent economic indicators. Markets are watching every detail for hints of where the world’s most important currencies may go next, especially after last week’s unexpectedly weak US inflation print. As the market continues to chew through this new reality, traders are finding their footing, recalibrating their strategies to pursue profit in a turbulent new environment.
At the same time, gold prices were flat on Tuesday, trading at around $3,250. This price point illustrates a very defensive market tone as investors continue to look for cover in precious metals during uncertain times. The story behind the disappointing release of US April Consumer Price Index (CPI) data has added to the boost in gold stability. That data in general has made investors reconsider their strategies, helping gold gain today.
On Tuesday, the AUD/USD cross moved into a new high quickly U-turning, bouncing back from an deep dive seen a day earlier. The Australian dollar blasted through the key 200-day Simple Moving Average (SMA) at 0.6460. This breakout is especially important because it signals a strong bullish sentiment from traders. This extreme movement is a vivid example of how volatile currency markets can be. Traders are forced to immediately change their investment strategies as economic conditions rapidly shift.
In corporate development, Robinhood today confirmed its plans to acquire WonderFi for $178 million in cash. With this acquisition, Robinhood has positioned itself to take ownership of one of Canada’s largest regulated cryptocurrency exchanges. It deepens Robinhood’s commitment in the relatively nascent digital asset sector. This acquisition brings an additional $2.1 billion CAD in assets under custody into Robinhood’s ecosystem, a notable feat to say the least. It is a momentous advance in their global expansion strategy. This comes on the heels of Robinhood’s $200 million dollar purchase of Bitstamp earlier this year in 2024.