As you can see, it's been very noisy during the trading session here on Tuesday as the 155 yen level continues to be supported right along with the 50-day EMA.
The US tariff threat was extended to China and the EU yesterday but after the North American market shrugged it off yesterday, for the most part, the market seemed to take it in stride.
Asian markets posted gains as optimism over increased AI investments under Trump's administration outweighed concerns about potential tariffs on Chinese imports.
EUR/CAD may retest monthly highs, followed by the two-month high at the 1.5060 level. The 14-day RSI maintains its position above the 50 mark, indicating a persistent bullish momentum.
Initially, the euro fell, during the trading session on Tuesday, but as we have seen a couple of times previously, there are plenty of buyers just above the ¥160 level to turn things around against the Japanese yen.
USD/CAD has experienced wild swings since Trump took office on Monday. Canada’s government plans to respond appropriately to Trump’s tariffs. Data on Tuesday revealed that inflation in Canada fell by 0.4%.
Markets have continued to unwind USD longs as US Treasuries had another strong session, and a delay in tariff announcements is fuelling some tentative optimism.
The Pound Sterling (GBP) ticks lower against the US Dollar (USD) in Wednesday’s London session but still holds onto Tuesday’s gains above the key support level of 1.2300.
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