- Lack of catalysts offered lesser Forex moves while risk assets and CAD were on the downside while GBP held positive.
- RBA meeting minutes to try offering an active start ahead of fewer catalysts from the Eurozone and the US.
Monday couldn’t be an eventful day for the Forex traders as fewer headlines and no data, not to forget Easter holidays at the UK, confined market moves. Asian session followed Friday’s hints of risk-on and upbeat China data but the charm dimmed while going forward and turned almost negative by the end of the US session. The reasons being, comments from the US Treasury secretary Steve Mnuchin, Fed’s Evans and results from Goldman Sachs and Citigroup.
Looking in detail, the GBP, the CAD and the CHF were movers of the day. The British Pound (GBP) benefited the most as traders welcomed the British lawmakers’ ability to spread chatter of avoiding no-deal Brexit despite being on Easter vacations till April 23. The Canadian Dollar (CAD), on the other hand, was on the losing side as Bank of Canada’s (BOC) quarterly business survey report portrayed gloomy outlook for the first quarter of the year. Moving on, the Swiss Franc (CHF) was on the downside as overall market sentiment was against the safe-havens which could also be witnessed from the moves of Gold and Japanese Yen (JPY).
The US Treasury Secretary Steve Mnuchin said that there is a lot to work to do yet with China while ANZ reported that China considers reshuffling some of its tariffs off agricultural goods in order to take some pressure off US farmers. Federal Reserve Bank of Chicago President Charles Evans reaffirmed the Federal Reserve’s neutral policy stance but couldn’t avoid saying that the US inflation was weaker than expected off-late. Elsewhere, the EU's Trade Commissioner Cecilia Malmstrom showed the region’s readiness to discuss trade with the US on condition of no more tariffs.
Global markets were mostly unchanged but in red as numbers from Goldman Sachs and Citigroup couldn’t stretch previous optimism spread through JP Morgan results. The Dow Jones Industrial Average, the Nasdaq Composite and S&P500 all lost around 0.1%. Better than expected earnings from Goldman Sachs couldn’t please buyers as a 18% drop in sales from institutional clients´ division dragged the revenues. Further, Citigroup also registered a decline in revenue amid upbeat earnings.
It should also be noted that the US NY Empire State manufacturing index for April beat 6.0 market consensus to rise 10.1 against 3.7 prior. However, details showed that the business conditions dropped to the lowest in more than three years.
Risk barometer, the 10-year US treasury yield, remained little changed around 2.56%.
Looking forward, RBA meeting minutes will start heating the economic calendar during Asian session whereas the UK employment figures and the Eurozone ZEW economic sentiment numbers will be on watch in European trading hours and the US industrial production could gain attention at the day-end. Additionally, headlines on trade between the US and the EU and/or the US and China could join Brexit news reports could offer intermediate moves.
Key Notes:
Wall Street ends in the red in a soft start to the week
GBP/USD consolidates daily gains, hovering around 1.3100
USD/CAD jumps to daily highs near 1.34 after BoC's dismal Business Outlook Survey
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.