US equities recovered from early losses on Monday, 28 April, supported by hopes of US-China trade de-escalation and optimism ahead of earnings from tech giants Apple, Amazon, Microsoft, and Meta Platforms. The S&P 500 and Nasdaq 100 reversed 1% intraday declines to finish flat, while the Dow and Russell 2000 posted modest gains of 0.3% and 0.4%, respectively.
In contrast, gold (XAU/USD) reflected caution, rising 0.7% after retesting last Friday’s low of $3,265, despite broader risk-on sentiment.
US Treasury Secretary Bessent stated in a media interview that while the US remains in contact with China, it is up to Beijing to take the first step toward easing trade tensions. Meanwhile, China has been excluded from the US’s ongoing trade negotiations with 15 to 17 other countries.
The US dollar remained under pressure amid trade uncertainty. Sterling jumped 1%, with GBP/USD reaching a three-year high at 1.3444, while the Japanese yen led G10 gains, strengthening 1.2% to 141.98.
China’s Politburo, in its meeting last Friday, made no mention of new deficit spending to offset trade-related headwinds, disappointing investors. This lack of stimulus weighed on sentiment, with Hong Kong’s Hang Seng Index trading flat for a second consecutive session.
Crude oil prices fell again, with WTI dropping 2.1% and slipping below its 20-day moving average resistance at $63.80 per barrel, amid growing concerns over weakening external demand.
Economic data releases
Fig 1: Key data for today’s Asian mid-session (Source: MarketPulse)
Chart of the day – GBP/USD hit a 3-year high with bullish momentum intact
Fig 2: GBP/USD minor trend as of 29 Apr 2025 (Source: TradingView)
The GBP/USD rallied by 1% yesterday, 28 April, and hit a three-year high at 1.3444. It has also surpassed the previous 26 September 2024 medium-term swing high closing level of 1.3415, which reinforced its ongoing medium-term uptrend phase in force since 13 January 2025.
In addition, the hourly RSI momentum indicator is still holding above a parallel ascending trendline support, which shaped a “higher low” above the 50 level, which suggests potential upside momentum remains intact in the short term.
Watch the 1.3340 key short-term pivotal support, and a clearance above 1.3480 sees the next intermediate resistance coming in at 1.3550/3580.
However, a break below 1.3340 invalidates the bullish tone to expose the next intermediate supports at 1.3250/3205, and 1.3120 (also the 20-day moving average).
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