U.S. stocks were relatively mixed on Monday. Revenue season and Federal Reserve concerns continued. The Dow Jones fell 60 points. The Nasdaq 100 index rose 30 points. Some of the leading companies that announced mixed stock results on Monday were Clorox, Moody’s, and Global Payments. Pfizer, Airbnb, Apollo Global, and Moderna will be other watches this week.
Meanwhile, the Federal Reserve session begins today; And then announce the interest rate on Wednesday. Analysts hope the bank will raise interest rates and begin a quantitative easing. After the data again showed that the U.S. economy is slowing down, the decision was made. For example, ISM manufacturing PMI fell to 55.4.
The euro has changed slightly against the U.S. dollar ahead of critical economic data. On Monday, data showed that eurozone consumer and business confidence declined in April; Due to inflation. These numbers mean that the European Central Bank will find it difficult to raise interest rates this year. Later today, the leading European data will be the latest German unemployment rate. Analysts predict that the unemployment rate will jump to 4.9%. Other essential data will be the producer price index and the unemployment rate from the E.U.
The Australian dollar has risen since the latest decision by the Reserve Bank of Australia on interest rates. The RBA has decided to raise interest rates for the first time in years. It increased the figures to 0.35%, higher than the expected 0.25%.
EUR/USD and Stocks
The bank also indicated it would continue to raise interest rates until this year to reduce inflation. The decision was made a week later; According to data from the Australian Bureau of Statistics, inflation has risen to a record high. As in the U.S., there are signs that inflation in the country is reaching a peak. Also, there are concerns about the Chinese economy; The government continues to lock COVID-19.
The EUR/USD pair decreased slightly. The focus shifted to the Fed’s next decision on interest rates. It fell to 1.0560, which was slightly lower than last Friday. It lifted slightly down the 25-day and 50-day moving scale. The pair is likely to continue to decline until the Fed decides.
GBP/USD pair retreated to 1.2511; It was slightly lower than last week’s high of 1.2618. It fell slightly below the midfield of the Bollinger Bands. It also changed below the 25-day average. The relative strength index also dropped to the neutral point below 50. The pair is likely to decline as the Bears target support at 1.2460.
The EUR/CHF pair rose to a maximum of 1.0292, the highest level since April 27th. The pair moved to significant support at 1,0200 and rose above the 25-day and 50-day moving averages. The relative strength index approached the level of over-purchasing. The pair is likely to rise as the bulls target the critical resistance level at 1.03200.