Trading news

Silver (XAG/USD) has retreated nearly $4 from the monthly high right above $83.00 hit last Friday, as the precious metal consolidates immediately below the $80.00 level, with investors returning to the safe-haven US Dollar, with the Middle East peace process under pressure. 

DBS Group Research’s Philip Wee highlights how the US Senate confirmation hearing for Kevin Warsh as Fed Chair could reshape the risk premium on the Dollar.

UOB economists Quek Ser Leang Lee and Sue Ann highlight that EUR/USD spiked to 1.1848 before reversing sharply, leaving the Euro looking overextended on the downside. They see scope for further weakness but expects firm support at 1.1715, with 1.1665 unlikely to be tested.

Crude prices edged lower during Monday’s European trading session, with the US benchmark West Texas Intermediate (WTI) barrel changing hands at $86.85 at the time of writing. This is down from session highs at $88.50, but significantly above Friday’s lows, at $78.90.

USD/CAD trades around 1.3690 on Monday at the time of writing, virtually unchanged on the day, after rebounding from the monthly low near 1.3650 reached on Friday.

HSBC Asset Management notes that April’s recovery in risk appetite has coincided with a sharp fall in the US Dollar, leaving year-to-date performance broadly flat and in line with the longer-term dollar-down trend.

ING’s Chris Turner notes Sterling has held up even as markets scale back Bank of England tightening expectations to just one 25bp hike this year, while ING expects no change in rates. Political scrutiny of Prime Minister Keir Starmer could weigh on sentiment.

Silver prices (XAG/USD) fell on Monday, according to FXStreet data. Silver trades at $79.45 per troy ounce, down 1.67% from the $80.80 it cost on Friday.

OCBC strategists Sim Moh Siong and Christopher Wong highlight that Gold remains closely tied to risk proxies, with weekend geopolitical twists denting risk appetite.

The USD/CAD pair attracts some dip-buyers on Monday, though it struggles to capitalize on the move or find acceptance above the 1.3700 mark amid mixed fundamental cues.

Eurozone Construction Output w.d.a (YoY) remains at -1.9% in February

Eurozone Construction Output s.a (MoM) down to -0.2% in February from previous -0.1%

The USD/JPY pair trades 0.25% higher to near 159.00 during the European trading session on Monday. The pair gains as the Japanese Yen (JPY) extends underperformance, following natural disasters in Japan.

Rabobank’s Senior Market Strategist Benjamin Picton highlights how shifting perceptions around the Strait of Hormuz are driving sharp moves in Brent.

The Euro (EUR) has retraced previous losses against the US Dollar (USD) following a weak weekly opening, as rising tensions between the US and Iran have curbed hopes of a swift resolution of the conflict.

EUR/JPY gains ground after registering modest losses in the previous trading day, hovering around 187.00 during the European hours on Monday.

UOB economists Quek Ser Leang and Lee Sue Ann report that AUD/USD surged to 0.7220 before reversing sharply and opening lower, with the latest drop seen as excessive but not yet complete.

The Australian Dollar (AUD) recovers previous losses against the US Dollar (USD) on Monday, amid tensions in the Strait of Hormuz between Iran and the US that cast doubt on the ceasefire's fate.

Deutsche Bank’s Jim Reid and colleagues describe how the S&P 500 has rallied strongly, reaching fresh record highs as Iran–US resolution hopes improved and Oil fell. They caution that earlier war episodes, such as Ukraine, show rallies can reverse if peace hopes fade.

Canada’s economic docket opens on Monday with the key Consumer Price Index (CPI) figures for March, which will be closely watched to gauge the inflationary impact of the war in Iran.