Yesterday was the first trading Day after Easter holiday in the US, and trading was thin with very low liquidity. While US stocks markets were open, European ones will open only today. Overnight, China and Japan closed modestly lower.
In the US , stocks opened slightly higher after data showed consumer spending picked up in February, the latest sign that an economic recovery is gathering steam. On the other hand, Inflation data was soft, which is not supporting views for an interest rate hike.
EURUSD edged higher, trading as high as 1.1210 from 1.1150 after USD plunged following the soft inflation data.
GBPUSD: similar picture with Sterling advancing against USD. After trading at 1.4160 for most of the day GBPUSD advanced over 100 pips to trade as high as 1.4283.
Gold and Oil: While Gold advanced to $1223 after most of the day trading close to $1215 and even reaching a low of $1208, Oil has only been trading one way yesterday- downwards. Oil dropped from over $40 to $39.15.
The main focus of the week is the long list of economic data to be released on Friday. Recent comments from Fed officials suggested that Fed is on course for two rate hikes this year. But the decisions would be heavily data dependent. Friday’s non-farm payroll report will be closely watched. Meanwhile, China PMIs will likely have an impact on risk markets and could set the tone for Q2.
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