Forex Daily Forecast, Analysis and Prediction

As the month of May gets ready to start, the price of Bitcoin has produced rather welcome upside for its long-term believers who had certainly been watching lower price action with some nervousness the past few months.

The GBP/USD pair wavered after the Federal Reserve delivered its interest rate decision and as geopolitical tensions rose. It was trading at 1.3480, a few points below this month's high of 1.3595, as focus shifted to the upcoming Bank of England (BoE) interest rate decision.

The EUR/USD exchange rate retreated after the Federal Reserve delivered its interest rate decision on Wednesday. It also dropped as energy prices surged amid the ongoing rhetoric between the US and Iran. It was trading at 1.1677, a few points below this month’s high of 1.1855.

The AUD/USD exchange rate dropped as traders reacted to the latest Australian inflation report, Federal Reserve interest rate decision, and the soaring crude oil prices. It was trading at 0.7123, down from the year-to-date high of 0.7195.

The European Union is facing problem with energy in the future, which is one problem, but the Swiss will backstop the euro if it crumbles.

Wheat continues to see bullish pressure Wednesday, as the markets are pricing in poor weather in the USA, as well as Australia. That being said, oil prices are also a concern, with the Straight of Hormuz and fertilizer an issue also.

The US dollar rallied against the Japanese yen again on Wednesday, as we wait to see If the massive potential breakout above plays out. At one point, if this happens, it will be the biggest story in markets.

German yields continue to rise, which is putting pressure on the DAX overall. At this point, it is worth watching the 10-year yield, and if it can drop below 3% again.

The interest rate differential between these two currencies still favors the US dollar, but with the noise coming out of the oil markets, it makes sense that we continue to see a range play out.

The Bitcoin market dropped a bit on Wednesday, as traders try to build momentum in a market that was left by huge numbers. However, institutions are starting to accumulate again.

The Aussie dollar has sold off against the Swiss franc on Wednesday, as traders continue to price in risk, and at the same time, the interest rate differentials between currencies.

The Aussie dollar pulled back early on Wednesday as risk appetite has suffered. The interest rate differential continues to make this an intriguing long.

The Euro fell again on Wednesday to test the 50 Day EMA yet again.

Gold fell on Wednesday, as interest rates in the USA continue to rise in general. With this, the clear pattern emerges that as the rates rise, the gold market continues to fall over. We are now below the crucial $4600 level.

Traders have been able to certainly wager on the USD/SGD price range the past handful of days as its realm has shown a tendency to bend but not break, the currency pair is near 1.27725 as of this writing.