Today's Economic News

General Market Overview:

The unrest of the Israel-Iran conflict is being watched closely by the stockmarket causing prices to drop. The Crude oil prices also experienced a pull upward due toconcerns for oil supply due to geopolitical tensions in the Middle East, closing at +0.22% yesterday. Currently, it is running a +0.17% from todays market open.

Uncertainty for the US economy pulled the 10Y bond yields up by 1.63% during yesterdays close as US March retail sales rose more than expected. However, it is a keynote that many of the economic indicators point that the economy is going steadily and strongly as previously stated by the FED, causing the pushbackof rate cuts.

NY Fed President Williams said, “We will need to start a process at some point to bring interest rates back to more normal levels, and my view is that process will likely start this year.”.

Right on the Eurozone, we have ECB Governing Council member Villeroy de Galhau saying, “Bar a surprise, the ECB should decide on the first rate cut at its next meeting on June 6.”

This caused the EUR to lose out on its strength against the USD in the early stages as support for the rate cuts wasannounced.

Gold- Due to rising tensions in the Middle East, confidence in the US economy is dropping. Though the support for the FED rate cuts was announced to happen within the year, the uncertainty was not resolved causing a hike inthe 10Y bond yields as inflation projections remain worrying. This also calls for people to look for better alternatives like Gold. We can see on the chart that the price is supported by the hourly structure at 2319.398. Currently, we can see the rally to test the 2431.936 but areunsure of when this will occur. We still call the GOLD to be on the LONG.

Silver- The rally on silver is expected and we continue to project this upward. Price is now supported by 28.073 and we can expect the rise to test the 29.900 and even go beyond it.

DXY- The DXY continuesto show momentum as the price broke through hourly structure at 106.236 as the data blast yesterday showed better than expected March retail sales. While the lower-than-expected outcome on the Empire State Manufacturing Index, Ian Shepherdson, chief economist at Pantheon Macroeconomics says the report “the failure of the headline business conditions index to rebound fully in April, after its 19-point plunge in March, is probably not a cause for alarm.”

Shepherdson adds that “the pick-up in oil prices likely explains why the prices paid index increased to an 11-month high ... but manufacturers appear to be hesitating to hike their prices, due to muted demand.”

We see the DXY testing the daily structure at 106.848 as it now runs in the expected parabolic movement toward said structure.

GBPUSD- We continue to see a drop inthe GBP as the USD gains momentum in the markets. We expect GBPUSD to testthe 1.23720 level before a call for a continuous drop.

AUDUSD- The AUDUSD has successfully dropped below 0.64427 with a strong momentum. With this successful break, we expect to see the price reaching the Monthly structure at 0.63047 as the next support level before pushing lower.

NZDUSD- Price is currently testing the daily structure at 0.58856 as we expected. Upon a successful break ofthe structure, we can expect the price to test the next daily structure at 0.58166.

EURUSD- With EUR rate cuts on their way and a positive inflation projection called by the ECB, its strength has momentarily left as we see prices dropping below the hourly structure at 1.06227 and expect to see pricesgoing toward the monthly structure at 1.04672.

USDJPY- As USDJPY continues to move in a parabolic manner in higher timeframes, the 1h chart shows a rally towards the 154.430 hourly structure as prices see a continuous rise. We expect to see a breakthrough in this structure and a run upward.

USDCHF- The USDCHF continues to respect the daily upward channel as pricescreate new higher lows while being squeezed between the resistance at the hourly structure at 0.91473 and the support at 0.91036. Price has yet again broken into the middle point of the daily channel,and we expect to see prices rising from here and into the daily structure at 0.92248.

USDCAD- With the price successfully breaking through the daily structure at 1.37881, it is now reaching to test the next daily structure at 1.38402 as per our expectations. We continue to see USDCAD bullish for the meantime as prices can continue to enter the zone beyond said structures.