With the U.S. imposing aggressive tariffs on Chinese goods, conventional wisdom suggests that Beijing will retaliate with a sharp devaluation of the yuan to counter the economic shock.
The EUR/USD pair continues to consolidate around 1.1371 this Friday, with trading activity subdued due to Good Friday market closures in the US and most of Europe.
The ECB cut all three key interest rates by 25 basis points, lowering the main refinancing rate to 2.40%, the deposit rate to 2.25%, and the marginal lending facility to 2.65%, as expected.
The British pound is showing signs of exhaustion near the 1.33 level against the US dollar, suggesting a pullback or consolidation may be on the horizon.
While the dollar is depreciating rapidly, symbolizing a global decline in confidence, American retail investors remain paralyzed, unable to benefit from gold's spectacular rise.
The EURUSD currency pair is showing strong signs of continuing its upward trend, based on Elliott Wave analysis. Since its low on September 26, 2022, the pair has been climbing.
The Australian Dollar (AUD) extends its rally that began on April 9, with the AUD/USD pair gaining ground as the US Dollar (USD) weakens amid growing concerns over the economic impact of tariffs on the United States (US).
The USD/JPY pair softens to near 142.25 in a thin trading volume session on Friday. The US Dollar (USD) edges lower against the Japanese Yen (JPY) amid concerns over the economic impact of tariffs.
The long end of the Treasury bond market is in danger of breaking down to the point that yields are on the verge of erupting higher. This is what debt spirals are made of.
Liquidity is likely to dry up quickly after the ECB meeting, which is widely expected to result in a quarter-point cut, ahead of tomorrow's holiday for much of Europe and North America.
Asian markets saw a slight uptick, while the yen weakened as investors responded positively to the initial round of trade talks between the US and Japan.
Dollar index it's not at the lows, so there’s a possibility of another and final drop toward the 98.00–98.50 area before the market turns up into a higher-degree correction by Elliott wave theory.
