Forex Today: Precious Metals Testing Highs
Markets by TradingView
Markets are seeing notable strength in Japanese Yen, Silver, and Gold, with the precious metals rising to or close to multi-month highs.
- Precious metals rose again yesterday, with especially strong long-term trends seen in both Silver and Gold, although only Silver made a new multi-month high yesterday. Long trades in these precious metals will be attractive to traders as the probability is of higher prices here over the coming days.
- The Japanese Yen is gaining again, although its volatility has stabilized and normalized. The new 10-year bond yield cap of 0.50% announced by the Bank of Japan earlier this week is already coming under threat due to rising inflation data.
- Canadian CPI (inflation) data saw a fall in the annualized rate to 6.8%, although the month-on-month data came in just a fraction higher than had been expected, showing an increase of 0.1%.
- In the Forex market, the strongest major currency is the Japanese Yen, while the weakest major currency is the US Dollar, putting the USD/JPY currency pair in focus.
- Global stock markets mostly rallied yesterday and have continued to gain weakly during the recent Asian session.
- There will be a release of US Final GDP data today.
- Daily new global coronavirus cases rose last week for the fifth consecutive week.
- It is estimated that 68.7% of the world’s population has received at least one dose of a coronavirus vaccination.
- Total confirmed new coronavirus cases worldwide stand at over 659.6 million with an average case fatality rate of 1.01%.
- The rate of new coronavirus infections appears to now be significantly increasing only in Brazil, China, Guatemala, Japan, and New Zealand. There is concern that the spread in China is currently extremely strong, which could have an economic impact and disrupt supply chains.