The Bank of Canada is widely tipped to leave interest rates unchanged on Wednesday when policy makers convene for the April central bank meeting.
U.K. stock indexes head solidly higher Tuesday, in post-Easter action, as investors in the commodity-heavy index get the first chance to react to a surge in crude-oil prices.
The U.S. dollar was trading mostly unchanged on Tuesday, continuing what’s been a quiet start to the week for the greenback. Meanwhile, Société Générale says volatility for the asset hasn’t been this low in years.
Investing.com - Gold prices lost ground on Tuesday as a wave of better-than-expected earnings stateside supported risk sentiment and investors opted for equities.
Dollar Index is close to the upper limit of its 6-months trading range. GBPUSD remains trapped between MA200 and 1.30. Oil has jumped at the start of the week by 3%: WTI – $66, Brent – $73.70.
Let’s cut to the chase as the energy complex has been the markets singular focus overnight and given oil prices far-reaching influence across global markets, so we might best be served to start with the meat and potatoes this morning.
Based on the early price action, the direction of the AUD/USD is likely to be determined by trader reaction to the price cluster at .7126, .7127 and .7129. A sustained move under .7126 will signal the presence of sellers. The first downside target is .7111, followed by the minor bottom at .7109. A sustained move over .7129 will indicate the presence of buyers. If this move can create enough upside momentum then look for a potential extension of the rally into .7153.
The pair is currently under pain of the earlier week released sparse economic indexes. In the last few sessions, the EUR/USD hardly moved amid Easter holidays. Tomorrow chances remain intact of action following specific German reports.
Based on the early price action, the direction of the June Comex gold futures contract on Tuesday is likely to be determined by trader reaction to the pivot at $1277.50.
It’s a mixed start to the day for the majors. While the Pound managed to hold steady, things could change later today as MPs return from recess.
Investing.com - Prices of safe-haven gold failed to sustain early-session gains on Tuesday, after initially rising following news that the U.S. will end Iran sanctions waivers.
WTI Oil and Brent crude both soared to fresh 2019 highs on Monday following reports that the United States will soon end waivers granted to countries importing Oil from Iran.
The price of oil, one of Canada's major exports, rose to its highest since October on growing concern about tight global supplies after the United States announced a further clampdown on Iranian oil exports. U.S. crude oil futures settled 2.7% higher at $65.70 a barrel. "We all know how correlated the Canadian dollar is with crude oil," said Erik Bregar, head of FX strategy at the Exchange Bank of Canada.
Currencies linked to commodity prices head higher Monday after U.S. government says it will end waivers for countries that import Iranian oil.
The Market remained silent in the middle of insufficient economic data on Easter Monday. The Cable was down, still sustained near 1.1300 levels. Oil price upsurged on the news suggesting Iranian sanction waiver rejection, making the loonie pair tumble further.
Gold markets initially tried to rally during the day on Monday but then found quite a bit of resistance above. That being the case, the market looks very likely to continue to show selling pressure above. However, we have a lot of technical support underneath so there’s a lot of questions to be answered.
The US dollar did very little during trading on Monday as we await some type of catalyst to get moving. There are economic announcements later in the week that could get things rolling, so at this point it looks as if traders are content to simply sit around and wait for momentum to come back to the market.
The British pound was a rather quiet to kick off the week on Monday, as we continue to hover above major support. There are a multitude of potential moves waiting to happen, but the most interesting one is to the downside.
The British pound drifted a little bit lower during the trading session on Monday to kick off the week, but we are sitting above a significant support and a couple of technical indicators as well. With that in mind it’s a bit difficult to put serious money to work in the short term.
The Euro initially tried to fall at the very open on Monday but then turned around to show signs of strength again. We are at the bottom of a major consolidation area so it’s not a huge surprise to see that the Euro got a bit of life down here.
The Aussie dollar fell slightly to kick off the week, but not enough that anybody noticed. This is a market that is currently digest the lot of bullish pressure, it of course with all of the questions around the US/China trade sanctions, Australia is unfortunately an unintentional casualty.