Breaking News: This Could Shake Up Markets

Market Overview

Despite these tariffs, China has set a 5% growth target, showcasing resilience and strategic adaptation, which could further shift global trade dynamics. The impact may extend beyond North America and China, influencing European markets as well.

Market Analysis

GOLD - Gold prices remain elevated but consolidating, reacting to the trade war escalation and growing concerns over U.S. economic stability. With Canada and China intensifying their stance, gold remains a safe-haven asset, attracting investors amidst geopolitical risks.

• MACD signals a potential bullish crossover.

• RSI shows an oversold condition in the last swing low, indicating a bullish continuation.

• EMA200 is now acting as a support level, reinforcing an uptrend.

Gold prices are set for further gains as uncertainty fuels safe-haven demand.

SILVER - Silver is mirroring golds bullish outlook, supported by growing market fears. Despite muted MACD volume, price action shows strong bullish sentiment.

• RSI remains in the lower levels, confirming strong buying momentum.

• Price has broken above 32.5177, signaling a confirmed bullish shift.

With gold leading the way, silver is expected to push higher, presenting strong buying opportunities.

DXY - The U.S. dollar is tumbling amid concerns over a slowing economy. Weak jobs data, declining private payrolls, and a drop in consumer confidence and retail sales all point to a cooling labor market.

• MACD remains in bearish territory.

• RSI is still at upper levels, showing no sign of reversal.

• Price action is heavily skewed towards selling pressure.

As inflation fears persist and economic indicators weaken, the dollar remains vulnerable to further downside pressure. Traders are favoring sell positions on the USD.

GBPUSD - The pound has set off with a blast, rising above 1.28508 with strength contrary to our initial expectations. The MACD is reflecting muted volume but shows strength in the buying when compared to price action. The RSI is also showing potential for further growth. Thus, we remain looking for more buying opportunities. Only that today, there might be a small hiccup and a potential pause in the rise for a short consolidation. Otherwise, we can expect it to rise further.

AUDUSD - The Aussie dollar sees increased strength against the dollar after its weakness. Risk-on assets start to increase after the dollar lacked appeal. The MACD shows continuation with the growth in volume, and the RSI continues to consolidate and remain under despite the rise, showing growth with momentum bullish. Thus, we remain looking for more buying as the overall price action has long shifted back to bullish.

NZDUSD - The Kiwi has also shifted back to overall price momentum bullish. The MACD is showing consistent volume growth for the buying while the RSI remains under despite the strong buying with price. We can expect to see continuation.

EURUSD - Euro prices rise considerably after it stayed between the consolidation zones. The MACD and the RSI are seeing considerable growth. Investor focus on Thursday will be on the European Central Bank meeting, where it is widely expected to cut interest rates again as policymakers contend with trade war woes and a rearmament focus in the region.

USDJPY - The Yen consolidates further even with the Dollars poor performance. The market is clearly discounting further BOJ rate hikes with more eyeing earlier tightening. Probability studies still suggest near-zero chance of a move this month but are much higher for the May Policy Board meeting and beyond. This causes the lowered movement with the Yen and the weakness it is showing in the market. There will be no changes in our reading for as long as markets remain consolidated. Although it did make a new lower high, it remains underperforming.

USDCHF - The Franc is currently sideways and is looking to bounce back up. This was contrary to expectations, as in times of uncertainty, the Franc is held to be one of the most stable backers for markets. However, it is underperforming right now.

USDCAD - The CAD is seeing increased selling momentum after markets show potential to sell further, crashing under the previous higher swing low and shifting overall price action to sell. If prices remain under, it will complete the shift.