Forecasts & Analysis | Fundamental, Page

Demand for risky assets will also influence gold prices. U.S. equity indexes are starting to turn positive in the wake of stronger earnings data from Coca-Cola and United Technologies. A surge to the upside in equities could drive gold prices lower as it approaches a key technical zone at $1272.70

During the early hours, the USD/CAD rallied benefitting on the back of greenback elevation. The pair had broken the 200-days SMA and traded above it, inviting more loonie bulls. Investors eye the upcoming Canadian Feb Wholesales figures and the US housing data reports.

After the prolonged Easter Recess, the MPs have resumed office today. And during this holiday time, the pair remained subdued near 1.1300 levels amid lack of events and Brexit updates. While, on the technical side, things remain uncertain. Hence, pair’s upcoming movements will weigh more on the fundamental side of

There were different opinions as to what fueled Monday’s strength. NatGasWeather said the gains came as weather data over the week-end trended “slightly cooler” for this upcoming weekend and early next week, showing “weak cool shots” across the Great Lakes and Northeast.

Dollar Index is close to the upper limit of its 6-months trading range. GBPUSD remains trapped between MA200 and 1.30. Oil has jumped at the start of the week by 3%: WTI – $66, Brent – $73.70.

President Trump has said in the past that he doesn’t want high oil prices and has called upon the Saudi’s to increase production. The last time he asked, they rebuked him. This time, Trump may be more insistent because high oil prices could slow down U.S. economic growth. 

Let’s cut to the chase as the energy complex has been the markets singular focus overnight and given oil prices far-reaching influence across global markets, so we might best be served to start with the meat and potatoes this morning.

The pair is currently under pain of the earlier week released sparse economic indexes. In the last few sessions, the EUR/USD hardly moved amid Easter holidays. Tomorrow chances remain intact of action following specific German reports.

Natural gas rebounds but its a dead cat bounce

Gold slips despite weak US housing data

Last week, the Pound was trading downwards against the USD, but the beginning of this one has been marked by calm movements close to 1.30.

Fundamentals aside, today’s price action is likely to be driven by short-covering due to the increased volatility in the crude oil market. Oversold conditions are also a catalyst behind the early strength.

Essentially, crude oil gains could be limited or prices could retreat if Saudi Arabia decides to increase production to offset the lost Iranian crude oil.  

On Monday, the Oil upsurge underpinned reports on Iran sanctions waiver rejection, pushed the commodity-linked pair downwards. The technicals also support the bearish trend for the USD/CAD.

The key upside level to watch is $1285.50. Sellers are likely to come in on the first test of this level. However, prices could begin accelerating to the upside if buyers take out this level with conviction. That means a combination of short-covering and strong speculative buying.

During the weekend, lots of rumors and negative talks took hold of the Brexit drama. The EU Elections are nearing, and the UK opposition party leaders look for a Second Referrundum as an election strategy. GBP/USD, at the moment, stays fragile.

US Q1 GDP and Australia Q1 CPI will highlight the G-10 calendar.

The Euro pair may find some upward space on the back of downbeat expected US data and crude upsurge. Investors look forward to April 23 as the UK parliament will reopen after the Easter Recess.

The catalysts behind the movement of the Japanese Yen this week will be the Bank of Japan Outlook Report, Monetary Policy Statement and BOJ Press Conference. Traders expect the BOJ to leave policy unchanged, while warning that it may ease if necessary.

In Australia, traders will get a chance to react to quarterly consumer inflation data. Better-than-expected data will likely buy additional time for the RBA before it has to finally cut rates. Weak data will likely move up the expected rate cut. Quarterly CPI is expected to come in at 0.2%,