Volatility could pick up as markets open

28 May, 2019

Lack of economic news or developments within the global themes played on the currency markets on Monday. With the US and UK markets closed on Monday due to bank holidays, activity was subdued. However, volatility could pick up as investors return from the extended weekend.

Euro Muted to EU Parliament Results


The euro currency was muted as results poured in from the weekend EU wide parliamentary elections. Although populist and anti-EU parties made further inroads, the support was still lower than anticipated. This led to the European equity indexes closing higher on the day. Economic data was subdued even in the Eurozone.

EURUSD Retreats After a Two-Day Gain


The common currency was seen extending declines in the early hours today. This follows a bearish close on Monday which comes after a solid rebound in the currency pair. The euro pared losses as it reversed off lows near 1.1106 last Thursday. Price is seen testing the support at 1.1182. A break down below this level could see the euro retesting the previous lows.

Crude Oil Holds as Russia Oil Production Hits a Snag


Crude oil prices managed to hold on the gains, albeit near two-month lows. Production data showed that Russian crude oil was lower in May. This was primarily due to oil contamination in one of the pipelines. As part of the production cuts, Russia is expected to cut production by 230,000 bpd.

WTI Crude Oil Likely to Target $60


The current consolidation in oil prices has led to price action posting a potential ascending triangle pattern. With the resistance level at 58.98, a breakout above this level could push oil prices further. The initial target is seen at the 60.33 handle. Retesting this level to form resistance could potentially cap further gains. This will keep oil prices ranging within 60.33 and 57.50 levels in the near term.

Gold Prices Drift Amid Lack of Catalysts


Gold prices were muted on Monday, despite price initially attempting to test intraday highs. With the US and UK markets closed and economic data from the EU staying sparse, the precious metal was seen giving up the gains by the day’s close. Gold prices advanced a meager 0.02% on the day.

XAUUSD Retreats as a Reversal Pattern Emerges


The precious metal was seen reversing gains but a lot is left to be seen how price action unfolds during the day. A bearish close following Monday’s Doji candlestick pattern could suggest some near term downside in price. The lower support at 1270 will once again become critical for gold. The evolving head and shoulders pattern remains in play still and could be validated on a break down below 1270 support.


Source link  
Trump Hits Mexico With Trade Tariffs

In a shift of focus from China, the Trump administration slapped Mexico with trade tariffs. The administration announced that it will impose...

USD maintains mains on growing cautious

The US dollar index held strong on Wednesday amid a mixed sentiment in the market. The 10-year Treasury yields hit a fresh 20-month low while equity...

Markets open to a slow trading day

Following a volatile week, we start today with both the US and UK markets closed due to bank holidays. This leaves most of the heavy lifting to the...


FOMC Minutes Urge Patience

The Federal Reserve released the monetary policy meeting minutes late yesterday. The minutes revealed that policymakers were committed to keeping...

New Zealand Retail Sales Rises 0.7% In Q1

The latest retail sales report from New Zealand saw a modestly better print than expected. Quarterly retail sales rose 0.7% beating estimates of a 0.6% increase...

Markets Open On A Soft Note

Lack of economic data and fresh trade rhetoric saw the markets trading rather subdued on Monday. The US dollar index was trading flat although price remains...


Japan's Q1 GDP Rises 0.5%

Beating estimates, Japan's first-quarter GDP grew at a pace of 0.5%. On a year over year basis, Japan's GDP advanced 2.1% during the January...

USD Steady at a Two-Week High

The US dollar was seen holding on to the gains, settling near a two-week high by Thursday's close. The gains came as the trade tensions eased and focus...

EURUSD Consolidates Near the Trend Line

The latest monthly jobs report from Australia saw the unemployment rate rising unexpectedly to 5.2%. Economists had forecast...

  


Share it on:   or