Posted on April 5, 2017 at 7:53 am GMT by the XM
Investment Research Desk
There was limited price action today as investors remained sidelined ahead of big risk events coming up this week. Major currencies mostly traded in tight ranges during the Asian session, with risk-off sentiment keeping trading volumes low, while a lack of major economic releases kept the market focus on the meeting between US President Donald Trump and China’s President Xi Jinping that will last two days, starting on Thursday.
This
will be the two leaders’ first face-to-face meeting since Trump took office on
January 20. Trade and security issues are high on the agenda. The US President
has in the past described China as a currency manipulator and he also accused
it for its unfair trade practices.
Friday’s
US nonfarm payrolls will also attract a lot of attention in the markets, while
tonight’s FOMC minutes will be eyed as investors hope to get more insight on
the outlook for US interest rates after the Federal Reserve’s March meeting in
which it raised interest rates.
The
dollar index, which tracks the greenback against a basket of six major counterparts,
was slightly trading lower on the day so far since Tuesday’s close of
100.54.
The
greenback edged down against the yen to reach an Asian session low of 110.52
after reaching an early session high of 110.90.
The
euro moved slightly higher against the dollar to $1.0688 after falling to a
three-week low of $1.0634 yesterday. The TV debate between French presidential
hopefuls yesterday indicated that far-right candidate Marine Le Pen did not do
as well against centrist Emmanuel Macron and this helped support the euro.
Sterling
halted a two-day decline against the dollar and traded in a tight range in Asia
around $1.2440. Focus will be on UK services PMI data due later today, which
could have an impact on the pound.
WTI
oil prices rose for a second consecutive session to its highest levels in more
than a month at $51.34 per barrel after industry-related data showed
diminishing US stockpiles. According to the American Petroleum Institute (API),
crude inventories fell by a more than expected 1.83 million barrels to 533.7
million barrels at the end of last week. Additionally, news of a production
outage in the North Sea also had an effect on oil prices. Meanwhile,
increased support for an extension of the OPEC output cut deal is also lending
support to oil prices.
Gold
pulled back slightly after rising for three consecutive days, to trade around
$1255 an ounce following a test of the key $1260 level yesterday.
Upcoming
economic reports of note for investors will be the UK services PMI data and the
ISM non-manufacturing PMI and ADP jobs numbers out of the US. Minutes from the
March Fed meeting are due to be released as well. Fed speakers today include
William Dudley and Daniel Tarullo.
Sumber:
XM Investment Research Desk
"Market Reviews"
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