Q2 kicks off with Easter Week, meaning many markets around the world will be closed, likely making for a slower, quieter pace of trading after the whiplash in Q1.
USD strengthened today and extends Friday’s gains with the help of diminished bank fears and the improved outlook on the economy. US Stock markets closed out Q1 firmly with solid gains and some quarter-end flows. The major indexes are higher for the year-to-date, paced by the US100‘s 16.8% pop. Asian markets are higher into the new quarter, US futures are mostly lower but European are mixed. Australian national home values rose 0.6% in March from February, breaking a 10-month streak of falls, according to property research group CoreLogic. Oil jumped $5+/barrel today as OPEC announced a surprise output cut.
Overnight: Japan – Tankan Large All Industry Capital Expenditure missed significantly (3.2% vs 9.9%), China – Caixin PMI (50 vs 51.7), Australian Building Permits (4% vs -2.6%).
- FX – USDIndex rallied to 12.58, EUR dipped to 1.0780 having traded to 1.0930 last week. CHF topped to 0.9195 but currently gains some ground against USD after Swiss CPI inflation dropped more than anticipated. JPY continued spiking to 133.80 as Japanese data missed significantly. Sterling retests 1.2300.
- Stocks – US markets closed the Quarter higher and today holding some gains with US30 holding above 33,450, US500 also higher at 4120 and US100 slightly lower but above 13,190.
- Commodities – USOil – Futures rallied again on the weaker USD to hold over $78.88 at $81.47. Saudi Arabia and other OPEC+ oil producers on Sunday announced further oil output cuts of around 1.16 million barrels per day, in a surprise move.
- Gold – pullbacked to $1949.65 once again, holding 1-week’s support.
- Cryptocurrencies – BTC holds $27.4k.
Today – ISM Manufacturing PMI & BOC Business Outlook Survey.
Biggest FX Mover @ (07:30 GMT) USOIL (+5.02%). Rallied to 81.43 this morning but currently sits at 78.91. MAs steady, MACD histogram & signal line positive & rising, RSI 70.72, H1 ATR 0.82, Daily ATR 3.35.
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Andria Pichidi
Market Analyst
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