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.
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.