Safe-Haven Currencies Gain Strength While Gold Remains Stable

By Tomasz Wisniewski|

Published: April 25 2023, 09:11 GMT+0

Safe-Haven Currencies Gain Strength While Gold Remains Stable

Risk-off mode arrived in the currency market on Tuesday, while the stock market remains sideways. Although Europe experienced a drop on Monday, the US saw a rise. However, Tuesday started with a correction of this upswing and another drop. Despite these moves, everything seems to be under control, and there isn’t much volatility. These moves appear to be a typical correction, and traders are likely preparing for a bigger move.

On Tuesday, safe-haven currencies, such as the Swiss Franc, Japanese Yen, and American Dollar, gained strength. The Yen appears to be the strongest currency at the moment, as the USDJPY saw a decline. The Australian Dollar is the weakest currency currently, with the EURAUD reaching new long-term highs. Interestingly, the market in Australia was closed on Tuesday in observance of Anzac Day.

Risk-off mode is not observed in the prime safe haven, Gold. XAUUSD has been moving sideways since the beginning of the previous week. In the commodities market, all attention is currently on oil, which saw a bullish upswing in the first two days of this week. However, it’s worth noting that this occurred just before the price closed a bullish gap from the OPEC+. The gap remains open, creating the possibility for a further drop.

The US earnings season is picking up pace, and today we’ll find out the numbers for Google, Microsoft, and Visa. All of these companies will present their numbers after the close of the American session, so the first reaction on the chart will be seen tomorrow. Yesterday, Coca-Cola’s results were better than expected, with an EPS of 0.68 vs 0.65 expected and revenue of 11B vs 10.81B expected. The market opened with a bullish gap, which pushed the price to new long-term highs. However, buyers were unable to hold the price at these levels, and the day ended with a bearish correction.