Blackout Period Ahead: How will it Affect Key Markets? [Video]

Last Friday’s robust NFP's gave a much-needed boost to riskier asses, helping stock markets edge higher. Major US indices closed in the green, with the Nasdaq finishing the day 0.6%. That being said, this ongoing rally has happened with very little trading volumes, which suggests that stock buy-backs by the companies themselves were very prevalent. However, by the end of the week, 70% of the S&P 500 companies will not be able to buy back their stock before they report their last quarter’s earnings, which are expected to come in lower across all industries.

Brexit to Take Center Stage

On the Brexit front, the EU has determined PM May's short-term extension as risky, while May was also not able to get any solution agreed on within her own Parliament. Brexit is positioned to reclaim centre stage later today with a series of indicative votes in the House of Commons. Although no proposal in last week’s votes won a majority, the closest was a motion for a new customs unions.

Brexit uncertainty remains the biggest challenge for the UK and continues to weigh heavily on the GBP. However, a weaker dollar has supported the sterling today with GBP/USD trading in the mid-1.3000s, up from recent lows. It should also be noted that Mrs May has committed to work on a compromise with the opposition ahead of the critical EU Summit on Wednesday.

Forex Preview: Dollar Sags As Bond Yields Slip

The dollar sagged on Monday as bond yields extended their decline after a robust U.S. jobs report showed that wage growth has lost momentum even as employment increased. Specifically, wage gains slowed in March, with average hourly earnings rising a modest 0.1 percent after jumping 0.4 percent back in February. It should be noted, that this moderation in wage growth will support the Federal Reserve’s decision to suspend further interest rate increases this year while the odds of a rate cut also increase. Elsewhere, the EUR/USD was last seen trading slightly above 1.1230, testing daily highs on a subdued greenback. The selling mood around the dollar has duelled  buying pressure in the pair so far today.

Oil Prices Climb to 5-Month Highs

Fights in Libya and Sanctions in Venezuela have pushed oil prices to a five month high today. International benchmark Brent futures were last at $70.75 per barrel at 8:15 GMT, up 0.55 percent from their last close, while U.S. West Texas Intermediate (WTI) crude added 0.6 percent, at $63.45 per barrel. It should be noted that increasing energy prices could become one more issue for company earnings in the immediate future, as they add to operating costs.

Gold Edges Higher on Weaker Dollar

Gold prices rose to a one-week high on Monday as the dollar edged lower, and as investors await minutes of the U.S. Federal Reserve’s March meeting later this week. XAU/USD gained about 0.4 percent in early Monday trading, to last trade near its key a $1,300 level, despite the super risk-on tone of stock markets. This is another important sign of safe haven demand rising.

In today’s crypto markets, BTC is pushing further higher and might see in another impulse a move back to the $6,000 level. The ETH/USD pair followed bitcoin’s lead and now looks set to test the $200 level.