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EUR/USD extends ECB-inspired rally to mid-1.0500s

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EUR/USD has extended its daily rally and reached its highest level in nearly a week above 1.0550. Hawkish comments from ECB policymaker Klaas Knot and the broad-based dollar weakness in the risk-positive environment continue to fuel the pair's upside as focus shifts to US data.   The Relative Strength Index (RSI) indicator on the four-hour  chart   stays below 70 while holding above 50, suggesting that the pair has more room on the upside before turning technically overbought.  On the upside, 1.0480 (50-period SMA, Fibonacci 50% retracement of the latest decline) aligns as initial resistance. In case this level turns into support, 1.0500 (psychological level, Fibonacci 61.8% retracement) and 1.0530 (100-period SMA) could be seen as the next recovery targets. Supports are located at 1.0450 (Fibonacci 38.2% retracement), 1.0420 (Fibonacci 23.6% retracement) and 1.0400 (psychological level).

Russia's Putin: Will react to expansion of military infrastructure in Finland, Sweden

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  Russian President Vladimir Putin said on Monday that the expansion of NATO is a problem and it is in the interests of the USA , reported Reuters. Russia has no problems with Finland and Sweden, he continued, but Russia will react to the expansion of military infrastructure in these countries. Putin added that Russia needs to pay additional attention to NATO plans to increase its global influence.  Finland and Sweden both announced their commitment to applying for NATO membership over the weekend and most NATO nations have come out in support. 

EUR/GBP clings to gains near 0.8570 area post-German ZEW, bulls eye YTD peak

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  EUR/GBP gained some positive traction on Tuesday and inched back closer to the YTD peak. The BoE’s gloomy economic outlook continued weighing on sterling and acted as a tailwind. Concerns about looming recession undermined the euro and capped any meaningful upside. The EUR/GBP cross held on to its modest intraday gains, around the 0.8570 region through the first half of the European session and had a rather muted reaction to the German data. The cross attracted some dip-buying near the 0.8545 zone on Tuesday and has now moved well within the striking distance of the YTD peak touched last week. The Bank of England's warning last week, saying that the economy was at the risk of a recession, suggested that the current rate hike cycle could be nearing a pause. This was seen as a key factor behind the British pound's relative outperformance and acted as a tailwind for the EUR/GBP cross. That said, concerns that the European economy will suffer the most from the Ukraine crisis hel

US Dollar Index Price Analysis: Room for a test of YTD highs

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  DXY resumes the upside beyond the 103.00 yardstick. Next on the upside comes the cycle tops near 104.00. The index leaves behind the pullback seen at the end of last week and advances above the 103.00 area on Monday. Price action in  DXY  remains supportive of the resumption of the uptrend with the initial target at the 2022 highs just below the 104.00 yardstick (April 28). Above this level comes 105.63 (December 11 2002 high). The current bullish stance in the index remains supported by the 8-month line near 96.80, while the longer-term outlook for the dollar is seen constructive while above the 200-day SMA at 95.76.

📕 Comment on Gold on April 29, 2022:

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 📕 Comment on  Gold  on April 29, 2022:   - In yesterday's trading session, after precious metal fell to 1871, Gold rallied strongly to 1896 ($25), closed the day session with a bull pusher and in the early morning of this day Gold continued to rise.  up to around 1905. With the current showing of good upward momentum, my view will be to prioritize the bullish option for this precious metal.  - On the H4 time frame, bullish force also prevails and the nearest support area for this precious metal is around 1895-1898, Here we can establish a buy position with a safe target around the threshold.  1910-1915.

US: Weekly Initial Jobless Claims fall to 180K vs. 180K expected

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  Weekly initial claims and continued claims were broadly in line with expectations according to the latest report.  The US dollar weakened as a result of weak US GDP data and ignored the latest jobless claims figures.  There were 180,000 initial claims in the US economy in the week ending on 23 April, in line with consensus estimates and a slight decline from last week's 185,000 reading which was revised up from 184,000, according to data released by the US Department of Labour on Thursday. That meant that the four-week average of initial claims rose to 179,750 from 177,500 a week prior.  Continued claims in the week ending on 16 April saw a slight fall to 1.408M from 1.409M a week prior, a little above the expected drop to 1.403M. The insured unemployment rate thus came in at 1.0% in the week ending on 16 April, unchanged from a week earlier.  Market Reaction FX markets did not react to the latest broadly as expected jobless claims report but rather reacted to weak US growth numb

USD/CHF pares intraday gains to fresh YTD peak, downside seems limited amid stronger USD

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  USD/ CHF jumped to a fresh YTD peak on Wednesday amid the prevalent USD buying interest. Bets for aggressive Fed rate hikes, a bleak global economic outlook continued boosting the USD. The risk-on impulse could undermine the safe-haven CHF and supports prospects for further gains. The USD/CHF pair retreated a few pips from its highest level since May 2020 touched during the first half of the European session and was last seen trading just below the mid-0.9600s. The pair prolonged its recent strong bullish run witnessed since the beginning of this month and gained follow-through traction for the fifth successive day on Wednesday. The momentum was sponsored by sustained buying around the US dollar, which climbed to a more than two-year peak amid the prospects for a more aggressive policy tightening by the Fed. Investors now expect the Fed to raise interest rates by 50 bps at each of its next four meetings in May, June, July and September. The bets were reaffirmed by the recent hawkish