Forex Daily Forecast, Analysis and Prediction

The GBP/USD price continued its rally, reaching its highest point since February 26. It jumped to 1.3490, and may be on the verge of more gains after forming a falling wedge and an inverted head-and-shoulders pattern.

Gold initially fell hard at the open on Monday as traders reacted very poorly to the idea that the ceasefire in Islamabad wasn't built upon. This market is still a bullish longer-term scenario but will feature a ton of short-term noise.

The EUR/USD exchange rate rose to its highest level since March 2nd, even as the US started its naval blockade against Iran. It jumped to a high of 1.1740, up sharply from the year-to-date low of 1.1413. It will react to the upcoming US Producer Price Index (PPI) data.

The US dollar has jumped against the Japanese yen to start off the week, as traders continue to trade the interest rate moves. At this point, the area just above is a massive barrier.

The NASDAQ 100 has seen a lot of volatility on Monday, as traders reacted to the ceasefire and lack of deal being signed.

Bitcoin price remained steady above the important support level of $70,000 as traders brushed off the risks posed by the closure of the Strait of Hormuz. The BTC/USD pair was trading at 74,275, up substantially from the year-to-date low of 60,000.

Monday saw the USD/CAD pair drop off the start but has also seen a bit of a recovery after that. This is a market that continues to be very noisy.

The DAX has been hammered early on Monday, but then turned around to at least show some fight, as we are treading water in an area of importance.

The euro gapped lower immediately on Monday, as traders reacted to the lack of a peace agreement between Iran and the US. However, we have since seen a strong bounce.

The US dollar has been very noisy on Monday, as traders attempt to adapt to a world where there is a ceasefire, but no real sign of the war ending. Interest rate differential continues to favor Mexico.

To say that the price action in natural gas is poor would be a massive understatement.

The USD/MXN is around 17.38000 as of this morning. The currency pair went into the weekend around 17.28300 and the jump higher this morning can be thought about with different perspectives.

Bitcoin was positive during Friday, defying the risk appetite concerns of the broader markets. With this, I continue to think we eventually break out.

Friday has seen the US dollar bounce a bit against the Loonie, but with the weekend talks in Pakistan – the world simply waits.

The German index finds itself collecting some of the earlier gains as this weekend will be crucial for risk appetite.