Wonderful introduction:
Walk out of the thorns, there is a bright road covered with flowers; when you reach the top of the mountain, you will see the cloudy mountain scenery like green clouds. In this world, a star falls and cannot dim the starry sky, a flower withers and cannot desolate the whole spring.
Hello everyone, today Avatrade Aihua Foreign Exchange will bring you "[Avatradescn" platform]: As the focus turns to the central bank, beware of the Fed's ruthless "eagle" posture." Hope it will be helpful to you! The original content is as follows:
May 6, during the European session, major currency pairs fluctuated in familiar ranges early on Tuesday as investors avoided holding large positions ahead of key central bank meetings this week. The European Statistics Office will release producer price index data for March. Later in the day, trade balance data for Canada and the United States will appear in the economic calendar.
The US dollar faced bearish pressure at the start of the week, but managed to gain a foothold in the second half of the day.
U.S. data shows that the ISM Services Purchasing Managers Index (PMI) rose from 50.8 in March to 51.6 in April. This data was better than the market expected by 50.6, helping the US dollar hold its position. Meanwhile, U.S. Treasury Secretary Scott Bessent pointed out on Monday that they are very close to reaching some trade deals. Similarly, U.S. avaforexcn.commerce Secretary Howard Lutnick told FoxBusiness that they hope to announce the trade deal as soon as possible, adding that the first deal is likely to be an agreement with the top 10 economies. U.S. stock index futures fell 0.2% to 0.5% early on Tuesday, after major Wall Street stock indexes closed in negative territory on Monday, with the U.S. dollar index consolidating narrowly above 99.50. The Fed's two-day policy meeting will begin later that day.
Basic foreign exchange market trends:
Data from China show that Caixin Service Industry Purchasing Managers Index fell slightly from 51.9 in March to 50.7 in April. The Australian dollar/USD appears to be entering a slightly higher Tuesday after hitting a 2025 high around 0.6500 on MondayDuring the consolidation stage of 0.6450.
Euro/USD rose slightly on the day, but was still below 1.1350 in the European period.
The GBP/USD closed in the upside on Monday, ending a four-day decline. The pair continued to move higher, trading above 1.3320 in early Tuesday. The Bank of England will announce its monetary policy decision on Thursday.
The US dollar/yen fell nearly 0.9% on Monday, erasing some of the gains from the previous week. The pair continues to bearish pressure, trading below 143.50 in early European trading.
Bulle market fundamentals:
On Tuesday, oil prices stabilized after hitting a four-year low on the previous trading day, which was affected by OPEC's decision to accelerate production growth. Gold hit a weekly high of $3,387 as safe-haven demand heats up.
Analysis of major currency trends:
Euro: The intraday bias of the euro/dollar remains neutral, and range trading continues above 1.1265. On the downside, below 1.1265 will resume a correctional decline from the short-term top 1.1572. However, the downside space should be subject to the 38.2% retracement level of 1.0176 to 1.1572 https://avaforexcn.com1.1039. On the plus side, breaking through 1.1424 will indicate that the correction has been avaforexcn.completed and the 1.1572 high is retested.
The above content is about "[Ava Avatrade Forex Platform]: As the focus turns to the central bank, beware of the Fed's ruthless "eagle" posture", it is carefully avaforexcn.compiled and edited by the Avatrade Forex editor. I hope it will be helpful to your transactions! Thanks for the support!
Only the strong know how to fight; the weak are not qualified to fail, but are born to be conquered. Step up to learn the next article!