USD confused, stocks rally again on Wednesday

By Peter Bukov|

Published: April 07 2021, 11:01 GMT+0

USD confused, stocks rally again on Wednesday


It looks like the immediate uptrend in the USD has ended as US yields seem to be stabilizing.

As long as the EURUSD pair trades above 1.1840, the short-term outlook seems bullish. The USDJPY pair is below 110 at the moment, and while it remains below that psychological level, the short-term outlook could be bearish here. 

Meanwhile, EU indices are up every day as countries imposed more lockdowns, which has been very bullish for stocks. US indices consolidated yesterday, but they will most likely continue higher today.

Yesterday, the International Monetary Fund raised its 2021 global growth forecast to 6%, up from 5.5% less than three months ago, citing unprecedented public spending, mainly by the United States.

Precious metals had a bullish day on Tuesday, but the uptrend momentum is still fragile, and rallies tend to be sold. Gold needs to jump above 1,760 USD to cancel the immediate bearish trend.