The Bank of Japan may intervene, and the US dollar fell on Monday Gold under pressure, hold on the 21 day moving average line, market concerns about Powell turning to hawkish

30 Apr, 2024

On Monday (April 29th), due to market concerns about a slowdown in US economic growth, the US dollar index fluctuated and fell, ultimately closing down 0.42% at 105.64. The 10-year US Treasury yield u

On Monday (April 29th), due to market concerns about a slowdown in US economic growth, the US dollar index fluctuated and fell, ultimately closing down 0.42% at 105.64. The 10-year US Treasury yield ultimately closed at 4.618%. The yield on the 2-year US Treasury, which is most sensitive to the Federal Reserve's policy interest rates, ultimately closed at 4.987%.

 

The US dollar fluctuated significantly against the Japanese yen, hitting the 160 mark in the Asian session due to speculative behavior. Later, it fell due to insufficient liquidity during the holiday, profit taking by traders, Japanese banks selling the US dollar, and suspected intervention from Japanese authorities. Finally, it closed down 1.25% at 156.31.

 

Gold prices barely held the 2330 mark on Monday (April 29th), helped by the weakening of the US dollar, but still under pressure below the 21 day moving average. Market focus shifted to the Federal Reserve's policy meeting and this week's release of US non farm payroll data to seek clues to the trajectory of the Fed's interest rates. At present, the market is concerned that the Chairman of the Federal Reserve may release hawkish signals, which poses certain downward risks to gold prices in the short term.

 

Due to the easing of the Middle East situation caused by the ceasefire talks between Hamas and Israel, WTI crude oil hit $83.55 on Monday (April 29) and then turned lower, ultimately closing down 1.19% at $82.65 per barrel; Brent crude oil closed down 0.94% on Monday (April 29) at $87.24 per barrel.

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