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Uche Daberechi Marvelous
@marvelous_treasure
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8 hours ago
A Dietitian-nutritionist who reads the charts and blow candles.
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"Elon musk is now worth more than the entire market cap of Bitcoin"
Does Forex give this kind of money?
Forex Market News Update for today sponsored by Marvelous-Treasure
Geopolitical Shifts and Central Bank Watch
A major pacesetter is the preliminary peace agreement between the US and Iran, aimed at reopening the Strait of Hormuz. This news has led to a sharp decline in oil prices, with WTI crude probing below $80 per barrel and Brent dropping below $83. Consequently, risk assets are showing gains, while currencies previously weighed down by the Iran conflict, such as the Indian Rupee (INR), Indonesian Rupiah (IDR), and Philippine Peso (PHP), are outperforming. The US Dollar Index (DXY) has also slipped to a 10-day low as safe-haven demand diminishes.
Looking ahead, the market's attention is firmly fixed on central bank policy. The Bank of Japan (BoJ) is expected to announce its rate decision tomorrow, with a vast majority of economists predicting a 25 basis point hike, bringing rates to 1.00%. This move, driven by persistent inflation and yen weakness, could narrow the US-Japan interest rate differential. Simultaneously, the Federal Open Market Committee (FOMC) is set to meet this week, with no changes to interest rates anticipated, but focus will be on the new Chair Kevin Warsh's leadership.
Let's talk about some of my or your favourite pairs:
USD/JPY: The pair remains stubbornly strong above 160.00, despite easing geopolitical risks and falling oil prices. However, with the BoJ's potential rate hike and the FOMC meeting, a bearish tilt is possible this week. Japanese authorities have intervened around the 160 level previously due to the speed of moves, and this area could trigger further action.
EUR/USD: The Euro is finding some support from the ECB's recent interest rate hike and revised inflation forecasts. However, a lowered eurozone growth forecast and sensitivity to energy costs present headwinds. The US dollar's weakness, stemming from the Iran deal, provides some room for EUR/USD recovery, though upside may be limited by the eurozone's prospects.
USDCAD: The US dollar is extending its rally, testing fresh resistance and attempting to break above 1.4000. A decisive continuation could see the pair move towards 1.4065, with 1.3915 acting as initial support.
Keep monitoring ongoing geopolitical developments and central bank communications closely for further market direction.
Lastly, don't forget to eat healthy cos a healthy trader is a healthy mind which can withstand the pressure of the market.
