Fundamental Analysis

Oil prices climb On Iran sanctions - Easter Monday Thin Trading ahead

Published on 2019-04-22 11:24 Share
USD/JPY

Forex today continued to witness holiday-thinned trading, as financial markets in Australia, Hong Kong and many major European economies remain closed this Easter Monday. Amid light trading, broad-based US dollar strength was the key underlying theme, in the wake of the relative strength of the US economy, especially after a stellar US retail sales report released last Thursday.

As a result, most majors traded on the back foot while the USD/JPY pair traded in a tight range capped by the 112.00 handle, while Euro and GBP, traded modestly flat, as markets look forward to fresh economic news and Brexit-related headlines.

Amid a lack of fresh EUR macro releases, as most major European markets are out on Easter Monday holiday, the next of relevance remains the US existing home sales data due later today at 14:00 GMT. Until the release, the broader market sentiment amidst the oil rally and USD dynamics will continue to drive the forex markets.

Oil prices jumped on Monday as the United States looked set to announce that all buyers of Iranian oil must end their imports or be subject to sanctions. Both crude benchmarks rallied to fresh five-month tops after the Washington Post reported that the US will try to force the Iranian oil exports to zero. Oil markets have tightened this year because of supply cuts led by the OPEC and as a result, Brent prices have risen by more than a third since January, and WTI by more than 40 percent.

Gold is attempting a bounce today, currently trading close to $1,278 per ounce. The gains are possible to extend further, but could be short-lived, as last week's US retail sales and jobless claims have strengthened the US Dollar. Also, Gold was pushed to near its lowest level since the end of December last week as economic data from China improved enough to relax concerns over a global economic slowdown. Dampening fears of a potential global recession prompted traders to lift protective hedges in gold and put their money to work in higher-yielding assets.

More Posts

Good Friday light trading Ahead 2019-04-19 12:45

The Good Friday European calendar remains data-empty as all the major European markets are closed today.

Eurozone PMIs in Focus – UK/US Retail Sales and US Manufacturing PMI Ahead 2019-04-18 11:07

Moderate risk-aversion prevailed across the markets amid a sense of caution ahead of the key Eurozone/ US macro data that could set the tone for the markets in the coming days.

US Dollar broadly lower – Eyes on UK and Eurozone CPI 2019-04-17 11:46

Forex today witnessed a volatile Asian session this Wednesday, with key macro news from across the Asia-Pac regions offering fresh trading incentives.

US Dollar still Under Selling Bias – Focus on UK wages and German ZEW 2019-04-16 11:27

Forex today witnessed a quiet Asian affair amid a cautious risk tone, with most majors sticking to thin trading ranges while the US dollar attempted a tepid bounce broadly.

Gold Drops to Weekly Low - A light calendar ahead 2019-04-15 11:18

Markets kicked-off the week on a cheerful note, with the risk-on sentiment dominating across the financial markets, despite several mixed weekend headlines from the central bankers.

Euro Higher ahead of Eurozone Industrial Production Data 2019-04-12 10:59

Markets today saw a flip on the risk sentiment, from a mixed set of Chinese trade data for March, and the favourable atmosphere around the risk-associated complex is supporting the mood in the European currency.

Euro and Pound Inch Higher After Brexit Delay – US PPI and Initial Jobless Claims in Focus 2019-04-11 11:19

Forex today breathed a sigh of relief in Thursday’s Asian trading, after a data heavy Wednesday that offered no new surprises.

UK GDP, ECB Meeting and FOMC Minutes in Focus Today 2019-04-10 11:28

Forex today experienced a typical caution trading amid plenty key events ahead, with most majors sticking to tight trading ranges amid a minor US Dollar bounce and negative Asian equities.

Geopolitical tensions trigger Risk-Off – Oil prices Near 5-month High 2019-04-09 11:38

Today’s trading session witnessed good two-way businesses, mainly driven by the prevalent risk environment and broad US Dollar weakness. But most majors stuck to tight trading ranges amid a lack of fresh economic drivers and looming trade risks.