Financial markets have had very little activity after the long weekend across the globe. The market has enjoyed silence on this day having some catalysts missing.
The US dollar is operating on very narrow variations since last Wednesday due to this lack of major catalysts. The negative remark on the market has reduced after talks between the president of China and the president of the United States. The Asian president insisted on seeking the dialogue as way to solve the current tension with North Korea.
As a consequence of the present issues, European stock markets have recovered and show a rather more positive face after Nikkei Index of Tokyo Stock Exchange plummeted 1.04% in the overnight session.
Regarding the raw material markets, the indicators are crossed. Oil presents a mild rise showing a 0.40% increase. Gold rose 0.13% in trading to reach US$1,275.50.
Some of G-10 currencies, such as the Australian dollar (AUD in Forex) or the New Zealand dollar (NZD in Forex) present their worst performance facing the US dollar. They show a decrease of 0.16% and 0.53%, respectively, due to the mix data on China’s inflation. This result points to the weak pressures of demanding a 0.9%.
It is important to note that Australian and New Zealand economies, whose currencies are dropping, depend highly on the evolution of China’s activities. This dependency has a direct impact on the prices for exportations in Oceanic countries.
US market session’s highlight was the speech given by the Dallas Fed President, Robert Kaplan the last Wednesday a 10am EST. It could be an even quieter session than expected given the absence of more determining economic data.
Either way, it is foreseen that trading operations on Forex market will stay unchanged due to current geopolitical tensions. On the other hand, financial traders are always on the look out for sustaining or reducing operations during the long weekend, especially for the celebration of Good Friday; this tends to have consequences on the trading operations.
However, there is a huge change expected to happen this week. All the eyes will be on the geopolitical decisions that China or USA might make, due to the possible effect of the threats made by North Korea President regarding the use of weapons and missiles to defend the Arabic country attack a few days ago.
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