Forex Today: Oil surge, USD dip to welcome global traders’ return from Easter recess
- Global markets will be in full form after Easter break.
- British lawmakers to return to the UK parliament and may renew Brexit fears.
- Economic calendar could also entertain momentum traders.
Asian traders can pick rising crude oil prices and the US Dollar (USD) weakness as their starting points when they resume work after Good Friday and Easter Monday holidays.
On Monday, some of the global bourses like China, Japan and the US were open when the news broke that the US is likely to tighten its grip over Iran by trying to cut the Middle East nation’s oil exports to zero. The Trump administration isn’t likely to renew previous waivers given to eight Iran oil importing countries. Energy traders reacted to the news and fuelled the WTI to fresh highs after October 31, 2018.
Elsewhere, soft prints of the US existing home sales and the Chicago Fed National Activity Index dragged the greenback down. However, speculations about China to push the breaks on its huge stimulus measured did negatively affect the Dollars of Australia and New Zealand.
The British Pound (GBP) also couldn’t take advantage of the USD weakness as news reports spread that Tories are ready to oust the British PM Theresa May if she fails to resign by June.
In the case of equities, Dow Jones Industrial Average (DJIA) trimmed 48 points to close around 26,512 with 0.20% losses while S&P500 and Nasdaq were in greens with 0.10% and 0.22% gains respectively.
Global risk sentiment was also a bit brighter as the US 10-year treasury yields grew nearly 3 basis points to 2.587%.
Looking forward, the return of most global traders from the Easter recess is likely offering active markets today. On the economic calendar, New Zealand credit card spending, Canadian wholesale sales, the US housing price index, new home sales, Richmond Fed manufacturing index and the API crude oil stock to join Eurozone consumer confidence.
Additionally, the UK lawmakers will return to the British parliaments after a long break and with many proposals on hand. As a result, Brexit will also regain its importance.
Wall Street mixed in dull start to the week
US Dollar Index Technical Analysis: DXY bulls are away on Easter holiday
Oil Technical Analysis: WTI hovering below $66.00 a barrel as Asian markets open
NZD/USD seesaws around 0.6680 as traders return after a long weekend