The financial markets are changing quickly and significantly. These are being pushed both by key economic indicators from around the world and new legal developments in the fast-growing cryptocurrency sector. Perhaps not surprisingly, recent surveys have indicated that traders are feeling confused and conflicted…particularly in the forex market. The dollar, aka the Greenback, is losing its shine. Looking to make your speeches and presentations more effective? Retail investors will face significant risks, with 81.4% of retail investor accounts losing money when trading CFDs with this provider.
In Japan, it’s a case of bad economic releases being well-timed to steal all the headlines. The Japanese docket will feature a number of noteworthy indicators such as the Consumer Confidence gauge and Machine Tool Orders. Bank Lending numbers will print and BoJ Governor Haruhiko Ueda will give a speech. These indicators are key for understanding the country’s economic health and will likely help set the positive mood on the country’s market in the region.
At the same time, Friday’s Greenback recovery effort appears to have fizzled as of Tuesday, sparking a broader rebound among risk assets. Traders seemed to feel a second wave of optimism about possible tariff setbacks could continue to solidify optimism in the market. This optimism has not yet fed through into gains for the Australian dollar. The AUD/USD FX cross has surely had its share of weakness, falling back once again to within shouting distance of five-year lows at 0.5950. This downturn speaks to more serious issues about Australia’s economic trajectory.
Australia comes out with some high-impact data soon, with Building Permits and Private House Approvals. Here’s why this data would be invaluable to understanding the construction and housing sectors. These figures will be scoured by analysts and investors in equal measure.
The crypto digital currency landscape has seen some monumental changes as well. James Murphy, aka “MetalLawMan” on social media, is making a splash. He’s just filed a class action lawsuit in a D.C. District Court against the Department of Homeland Security (DHS). Murphy’s new project, unveiled this week in his post, is to figure out the identity of Satoshi Nakamoto, the mysterious creator of Bitcoin. His diligent work might pave the way for clearer regulatory frameworks around cryptocurrencies and help promote their acceptance down the line.
The USD/JPY currency pair in particular is experiencing extreme volatility. On Tuesday, it gave back much of two daily gains and fell again to the low-146.00s. This movement is an indication that the uncertainty in U.S. monetary policy continues to affect the USD/JPY exchange rate.
The EUR/USD currency pair has reversed two daily declines, regaining strong upside momentum above the 1.0900 mark, driven by improved market sentiment in risk-associated assets. Traders are clearly responding to the positive movement in this pair. Or, they might just be doing enough to set themselves up for future success as the economic tides change.
GBP/USD has bounced hard from late September/October lows. It has managed to convincingly retest its important 200-day simple moving average (SMA) once again after breaching the 1.2800 ceiling. This resilience may portend a stabilization in the British pound after a period of extreme fluctuation and deterioration.
Future economic data releases will be critical. On April 11, the UK will unveil its first set of core indicators. These will be foreshadowed by GDP, the Goods Trade Balance, Industrial & Manufacturing Production, Construction Output and the NIESR Monthly GDP Tracker. On the same day, Germany will publish its finalized inflation rate. This observation, in tandem with the current account results, will provide some amazing clues as to what’s happening economically in Europe.
Come federal reserve governor Thomas Barkin on deck. His comments may influence market perceptions of the future course of U.S. interest rates and the overall course of monetary policy.