This Tuesday the market sees a lower USD against other major currencies. Oil & Gold are also higher.
1 – USD Extends Losses
The US dollar (USD) downtrend extended during the London afternoon session yesterday as sentiment towards the USD continued to deteriorate at month’s end. US data releases were decent, but the focus remains on the current weak US inflation, unstable US politics and the improving euro area sentiment.
2 – Euro Trumps USD
EUR/USD moved strongly higher yesterday and broke above 1.18 for the first time since 14 January 2015 reaching as high as 1.1845. After a quiet European trading session with very little volatility in the major crosses, EUR/USD suddenly bounced just before the London close with no news out and it seems that the move was driven by month-end flows.
3 – AUD Higher on Good Chinese Data
The AUD jumped earlier today, lifted by better than expected data from China. But there is no follow through buying after the Reserve Bank of Australia (RBA) stands pat and warns of recent appreciation in the exchange rate. Sterling is also trading mildly higher as markets await UK manufacturing data.
4 – WTI Higher Following US Threats of Sanction
West Texas Intermediate (WTI) crude oil surged through the 50 handle overnight, reaching 50.50 and is staying firm above. A factor boosting oil prices was US sanction over Venezuela president Nicolas Maduro after an election over the weekend virtually gave the president unlimited power. Threat of US sanctions against Venezuela added to hopes of tightening supply.
5 – Gold Still Near Seven-week High
Gold prices held near their highest level in around seven weeks on Tuesday, as market players looked ahead to a key batch of US economic data to gauge the strength of the world’s largest economy and how it will impact the Federal Reserve’s view on monetary policy. Gold rose to 1270, after gaining also 2.2% last month, its best performance since February
