Daily Market Review April 12



In the event of a weakening USD, dollar denominated commodities have become much cheaper. Crude oil prices were seen stabilizing as the U.S. crude CLc1 went to trade around $40.19 a barrel while Brent crude LCOc1 was seen rising above $43 a barrel yesterday, but has now lost around 0.30 percent, trading around $42.70 a barrel. Gold prices also touched the highest level in more than three weeks, followed by a 2 percent rise for Silver and Platinum.

Moving on, much attention is being drawn towards next week’s Federal Reserve interest rate decision. This will definitely impact major currencies and the dollar. While the dollar is trying to find a steady mode, Asian shares were seen a little changed with the strength of the Yen dominating Japan’s Nikkei. The Nikkei dropped by 0.3 percent, while on the other hand, investors are advised to continue keep an eye on market trends by the side of the Wall Street. Earnings Season continue to generate much volatility.

Alcoa Inc. metal company reported a lower quarterly profit which resulted into a low commodity price. This will be a tough earnings season due to the ongoing global turmoil engulfing much assets in a downtrend mode. Major oil producers’ meeting is scheduled on April 17, while note that Iran and Iraq may not be part of the consensus, thus taking a toll on oil prices. Furthermore, UK CPI data is set for release today, which could urge the pair GBPUSD to turn bullish if numbers are positive.

Technical Analysis:
The EURUSD pair is climbing back to the top around the 1.1450 level which is a result of the rising sentiment due to a falling dollar. Yesterday, the pair EURUSD commenced the session around the 1.140 level after having incurred slight losses since last week. The pair later tried to gap higher but was brought to consolidate up till the 1.141 level. During the session, the pair was dragged down to the lows around the 1.137 level but regained momentum, to be driven up to the 1.144 level, but did not touch the 1.1450 level of resistance. The pair closed the session down at the 1.141 level and the absence of important fundamentals may cause the pair to trade around the same level today.
The USDJPY pair was seen slightly higher this morning, reviving positive sentiment of this pair. The Yen turned out to be a little weaker earlier today as investors shift their focus Bank of Japan policy makers. The USDJPY is currently up by 0.20 percent, trading around 108.26 level. Overall the dollar shows good signs but traders wonder whether this momentum will last or not. Yesterday, the pair USDJPY initiated the session around the 108.2 level and fell to the 107.7 level and consolidated till the 107.9 level before closing the session. Traders are advised to look out for cues from the Federal Reserve on interest rates which have greater impact on the dollar.
The British Pound is seen edging close to the 1.430 level after having touched the 1.427 level back again yesterday. The 1.427 level was reached last week and the ascent of the pound is seen the much talked reversal trend. The rise of the GBPUSD pair is perceived as a strong momentum here, but other data releases set for today will give a better inkling if the pair will remain high up or be moved by the strength of the dollar. Yesterday, the pair GBPUSD started the session around the 1.412 level and consolidated before being pushed up by several momentary jumps. The pair reached to the 1.427 level and with the UK CPI data awaited today, watch out for trends of the GBPUSD.

 

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