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Hello everyone, today Avatrade Aihua Foreign Exchange will bring you "[Aihua Foreign Exchange Decision Analysis]: The market stabilizes before the key central bank meetings, and the United States may take military action against Iran!". Hope it will be helpful to you! Original content is as follows:
Trading activity in financial markets became sluggish on Tuesday as investors remain optimistic about the easing of the Israel-Iran conflict. Economic prosperity data for the euro zone and Germany will appear in the European Economic Calendar. Later in the day, market participants will closely monitor U.S. retail sales and industrial production data in May.
The Wall Street Journal reported on Monday that Iran is seeking to end hostilities with Israel and resume negotiations on its nuclear program. Later in the day, G7 leaders attended the summit in Canada and issued a joint statement calling for a "easiness" to Iran on Monday. The G7 statement said member states have been making it clear that Iran will never possess nuclear weapons. Meanwhile, U.S. President Donald Trump left the summit early and returned to Washington. While speculation that Trump will re-engage in a ceasefire agreement between Israel and Iran, he clarified that this is not the case. Earlier on Tuesday, an Iranian senior army www.avaforexcn.commander reportedly pointed out that the attack on Israel would intensify later in the day.
Basic foreign exchange market trends:
The US dollar index remained calm and had almost no changes after the closing of the first day of the week, slightly above 98.00. Meanwhile, U.S. stock index futures fell slightly. The Federal Reserve will announce monetary policy decisions on Wednesday.
The Bank of Japan (BoJ) announced on Tuesday that it would stabilize its short-term interest rate target within the range of 0.4%-0.5%, as widely expected. In its policy statement, the Bank of Japan pointed out that due to trade policy guidance,tradescn.com/">www.avaforexcn.com caused slowdown in overseas economies and lower corporate profits, and economic growth could slow. Bank of Japan Governor Kazuo Ueda reiterated at a post-conference press conference that they would continue to raise interest rates if prices and economic trends fit their prospects. Meanwhile, Bloomberg reported that U.S. President Donald Trump and Japanese Prime Minister Shigeru Ishiba failed to reach a trade during the G7 summit Easy Agreement. Despite these developments, the U.S. dollar/yen fluctuated narrowly around 144.50 in early Tuesday.
The GBP/USD closed almost unchanged at Monday's closing and continued to consolidate sideways above 1.3550. The Office for National Statistics (ONS) will release May inflation data on Wednesday. On Thursday, the Bank of England (BoE) will announce monetary policy decisions.
Euro/USD closed slightly higher on the first trading day of the week. Earlier Tuesday At that time, the pair is still in the consolidation stage and fluctuates up and down within a narrow wave above 1.1550.
Bulle market fundamentals:
Crude oil prices fell sharply, WTI rose nearly 2% on the day, and the trading price was slightly higher than US$71.
Gold remained flat below US$3400 during the European period.
Analysis of major currencies:
Euro: Euro/USD at 1 .1630 temporarily consolidates below the top and the intraday bias remains neutral. As long as the 1.1372 support level holds, further rise is expected. A breakthrough of 1.1572 will continue the uptrend from 1.0176. The next target is a forecast of 1.0176 to 1.1572 from 1.1064 to 1.1927. However, a breakthrough of 1.1372 support level will indicate a short-term peak and turn down to get a deeper pullback.
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