The US retail sales report for March, scheduled for release today, is expected to show a 1.4% increase. This comes alongside a Bank of Canada meeting that is drawing attention in financial markets. While inflation in the UK is slightly decreasing from 2.8% to 2.7%, high service costs continue to limit relief. Analysts are particularly focused on retail data in the US, as core retail sales are predicted to rise by 0.4% from the previous 0.3%, and total retail sales are forecast to jump 1.4%, up from 0.2%. Some experts suggest this surge could be tied to consumers purchasing items in advance of new tariffs, which may be affecting buying behavior. Wards’ data shows a 10.6% rise in auto sales and increased spending on electronics and home appliances.
In Canada, analysts are divided over whether the Bank of Canada will lower interest rates during this week’s meeting. Despite inflation being higher than expected, weak job data and low business confidence are creating pressure for rate cuts. A recent report showed a loss of 32,600 jobs in March, contributing to the Bank of Canada’s cautious stance.
Last week saw significant market volatility, with gold prices surging $250 in just three days. EUR/USD gained 5 cents, and stock markets experienced sharp fluctuations. FX Leaders issued 40 trading signals during this period, closing the week with 25 winning and 15 losing trades.
Gold Reaches Record High Near $3,200
Gold prices have seen a remarkable increase, rising by $260 over three days, the largest rally in the metal’s history. The surge was driven by growing demand for safe-haven assets amid rising trade tensions between the U.S. and China, coupled with a weaker U.S. dollar.
EUR/USD Surpasses Resistance
The USD/CAD exchange rate has been falling but showed signs of recovery yesterday. The USD gained strength following a decrease in Canadian inflation. After U.S. tariffs on Canada and Mexico were introduced earlier this year, USD/CAD hit a 25-year high of 1.4792 in February, before retreating below 1.40. A weak Canadian CPI report caused USD/CAD to jump 130 pips, moving back above 1.3950.
Cryptocurrency Update: Bitcoin and Ripple Show Volatility
Bitcoin experienced intense price movements last week. After a $5,000 rally, it dropped below the $75,000 mark but quickly recovered to above $80,000. This volatility followed comments from former President Trump that reignited investor confidence. The 50-day moving average also helped support the price, signaling strong buying interest.
Ripple’s XRP stood out during this period for its relative strength. Even as the broader cryptocurrency market struggled, XRP found support at key levels like $2.20, $2.00, and $1.80. As global markets rallied, XRP regained the $2 mark, boosting investor sentiment.
As global markets experienced one of the strongest rallies in recent months, cryptocurrencies followed suit. XRP led the charge, regaining the $2 threshold and contributing to renewed confidence in the digital asset market.
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