Forex Market Overview
Risk On Sentiment Dominates Over US Stocks EPS
Robust earnings statements out in the US served to drive equity markets to fresh highs overnight. Technology stocks headed the way with the Nasdaq finishing the day up 1.32%. The other major US indices also had big days with the S&P closing 0.88% up and the Dow 0.55% in the black.
Dollar Index Surges Over-Optimistic Corporate Earnings
The dollar increased well among the majors with the Dxy punching up to obtain a fresh yearly high at 97.77 before sinking back slightly into the Asian open. Certainly, it would help if you had the US dollar before invest in the US stocks. Thus, the demand for dollar increases over positive EPS reports.
Bullish Waves In Crude Oil – Saudi Arabia & Iran Plays
Oil continued to push higher again as Saudi Arabia endured careful on improving production in light of the US’s settlement to end Iranian oil sanction waivers. The WTI crude oil is now trading above $66/b, and Brent trading at $74.5/b.
Australian CPI Report Disappoints
During the Asian session, the Aussie took a bearish turn after softer than anticipated inflation in the first quarter, fostering expectations of a possible rate cut by the central bank.
In quarter-on-quarter terms, consumer inflation was steady in March after a 0.5 per cent rise in the December quarter. That compared to a 0.2 per cent surge prediction by economists surveyed by Reuters.
It’s been an excellent start to what could be a crucial week for financial markets with positive earnings reports. Especially the better than expected EPS from the US firms including Twitter, Texas Instruments, Coca Cola and Hasbro are driving bullish bias for the global stocks.
German Ifo Business Climate: 8:00 GMT
When ZEW’s survey of firms expanded to positive territory, the big check comes from Germany’s No. one think factory. Has the previous continent’s largest economy bottomed out? A score of 91.6 points was seen in March. The data for April is due, and economists are expecting 99.9 figures this month.
Canadian Rate Decision: 14:00 GMT
The Bank of Canada recently created a dovish tone, following the lead of different central banks. Administrators see a possibility of growth while no rise in inflation. Additionally, the contemporary BOC Business Survey showed a deterioration in economic conditions.
The BOC isn’t expected to cut interest rates at this meeting. However, Governor Poloz might offer more comments on the next policy moves in his conference. The Ottawa-based establishment conjointly releases new forecasts.
Have a good day!