Currencies linked to commodity prices head higher Monday after U.S. government says it will end waivers for countries that import Iranian oil.
A popular measure of the strength of the U.S. dollar is inching toward its highest level in almost two years, having carved out gains in the past two months and on track to notch a third given current levels.
Based on the early trade, the direction of the EUR/USD on Monday is likely to be determined by trader reaction to the resistance cluster at 1.1254.
On Monday, the Oil upsurge underpinned reports on Iran sanctions waiver rejection, pushed the commodity-linked pair downwards. The technicals also support the bearish trend for the USD/CAD.
The key upside level to watch is $1285.50. Sellers are likely to come in on the first test of this level. However, prices could begin accelerating to the upside if buyers take out this level with conviction. That means a combination of short-covering and strong speculative buying.
Gold bounces on Monday amid technical buying while platinum is ready to test highs again. Silver remains in range.
During the weekend, lots of rumors and negative talks took hold of the Brexit drama. The EU Elections are nearing, and the UK opposition party leaders look for a Second Referrundum as an election strategy. GBP/USD, at the moment, stays fragile.
The S&P; 500 slipped 3 points or 0.1% by 9:43 AM ET (13:43 GMT), while the Dow was down 46 points or 0.2% and tech-heavy Nasdaq composite lost 22 points or 0.3%.
Investing.com - Gold prices bounced higher in the wake of last week’s decline as increased tension between the U.S. and Iran sparked demand for the safe haven asset.
We know many of you follow our research posts and have been waiting for the Gold/Silver setup we predicted would happen near April 21~24, 2019 back in January 2019. Well, it looks like our predictions were accurate and the current downward price rotation in Gold/Silver are the opportunities of a lifetime for precious metals traders.
The Euro pair may find some upward space on the back of downbeat expected US data and crude upsurge. Investors look forward to April 23 as the UK parliament will reopen after the Easter Recess.
“The surge in oil prices is the primary reason that is weighing on all asset classes,” said Harish Agarwal, Mumbai-based trader at FirstRand Bank Ltd. Elevated crude prices widen the country’s current-account deficit and stoke inflation, which muddies the outlook on interest rates, he said. Brent prices surged as much as 3.2 percent to 74.31 a barrel, the highest since Oct. 31, as the U.S. government was said to eliminate sanction waivers that allowed buyers to import Iranian crude.
It’s another quiet day for the markets, leaving the Kiwi and Aussie Dollar on the back foot. Expectations are for more policy easing…
Based on the early price action, the direction of the AUD/USD is likely to be determined by trader reaction to the resistance cluster at .7149 and the Fibonacci level at .7153. Overtaking .7153 and sustaining the move will indicate the presence of buyers. A sustained move under .7149 will signal the presence of sellers.
The catalysts behind the movement of the Japanese Yen this week will be the Bank of Japan Outlook Report, Monetary Policy Statement and BOJ Press Conference. Traders expect the BOJ to leave policy unchanged, while warning that it may ease if necessary.
In Australia, traders will get a chance to react to quarterly consumer inflation data. Better-than-expected data will likely buy additional time for the RBA before it has to finally cut rates. Weak data will likely move up the expected rate cut. Quarterly CPI is expected to come in at 0.2%, down from the previously reported 0.5%. Trimmed Mean CPI is expected to come in at 0.4%, unchanged from the previous reading.
Given the plethora of this week’s U.S. economic reports, it looks as if the direction of the gold market this week is going to be controlled by the U.S. Dollar. This week, the dollar should be impacted mostly by Durable goods with Advance GDP a close second.
Investing.com - This week investors will be looking ahead to Friday’s data on U.S. first quarter growth, which is expected to show that the economy is stabilizing after a recent soft patch.
Based on the close at $1276.00 and last week’s price action, the direction of the June Comex gold market on Monday is likely to be determined by trader reaction to the major 50% level at $1272.70.
Based on last week’s price action and the close at .7151, the direction of the AUD/USD on Monday is likely to be determined by trader reaction to the main Fibonacci level at .7153 and the intermediate 50% level at .7150.