After a peaceful ending to last week, with the trade war easing and Trump and Rouhani even possibly going to meet, markets are now in shambles. A drone attack targeting the two key refineries in Saudi Arabia, potentially done by Iran, changed everything in an instance. Oil prices spiked sharply higher after weekend drone attacks on crude facilities in Saudi Arabia sparked fresh oil supply fears. Stock markets globally faced gaps to the downside and are in a wait-and-see mode now as market participants look to what's going to happen next after this attack.
Fears of a US/Iran War Intensify
Donald Trump tweeted the US is locked and loaded and are waiting for Saudi Arabia's confirmation of who they believe was responsible for the attacks. The situations turned from peaceful to at-the-brink- of-war over the weekend!
Brent Rises Almost 20%
Oil prices surged on Monday after an attack on Saudi Arabian oil facilities on Saturday shut over 5% of global supply. Oil prices reacted heavily to the Saudi Arabia drone attacks with Brent futures rising by as much as 19.5% posting its biggest intra-day percentage gain since the Gulf War of 1991, but since came down after President Trump assured supply would stay intact by releasing strategic US oil reserves to the market. Currently, Brent futures are trading 9% higher while Crude WTI futures were last 8% higher as of 9:15 GMT.
Forex Preview: EUR/USD in for a Ride
The USD is currently awaiting the FED meeting this week, which could disappoint markets heavily as CPI is on the rise in the US and the economy is not in a state of needing easing just yet while potentially oil prices are also driving inflation higher. It is just going to be tough for the Fed to proceed with further easing against growing inflation. Meanwhile, the EUR might face trouble from a WTO ruling that could bring tariffs from the US on EU goods after the EU illegally subsidized Airbus according to the WTO ruling. GBP pairs will also be in focus as the Bank of England meets later this week, with all eyes on Carney and how he will react to the latest Brexit developments and specifically Johnson’s suspension of Parliament and his failure to push for early elections.
Gold Prices Rise, BTC Stumbles
Gold prices edged back above $1,500 which it did not even fall below much even when risk-on was dominating, should risk-off flare up again, we expect gold to rise with it. Elsewhere, BTC is failing repeatedly to cross the 10.36k level to the upside, something that BTC must achieve sooner than later or re-test the 10k level on the downside to give more directional input.
Recommended Content
Editors’ Picks
EUR/USD trades with negative bias, holds above 1.0700 as traders await US PCE Price Index
EUR/USD edges lower during the Asian session on Friday and moves away from a two-week high, around the 1.0740 area touched the previous day. Spot prices trade around the 1.0725-1.0720 region and remain at the mercy of the US Dollar price dynamics ahead of the crucial US data.
USD/JPY jumps above 156.00 on BoJ's steady policy
USD/JPY has come under intense buying pressure, surging past 156.00 after the Bank of Japan kept the key rate unchanged but tweaked its policy statement. The BoJ maintained its fiscal year 2024 and 2025 core inflation forecasts, disappointing the Japanese Yen buyers.
Gold price flatlines as traders look to US PCE Price Index for some meaningful impetus
Gold price lacks any firm intraday direction and is influenced by a combination of diverging forces. The weaker US GDP print and a rise in US inflation benefit the metal amid subdued USD demand. Hawkish Fed expectations cap the upside as traders await the release of the US PCE Price Index.
Sei Price Prediction: SEI is in the zone of interest after a 10% leap
Sei price has been in recovery mode for almost ten days now, following a fall of almost 65% beginning in mid-March. While the SEI bulls continue to show strength, the uptrend could prove premature as massive bearish sentiment hovers above the altcoin’s price.
US economy: Slower growth with stronger inflation
The US Dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.