1. Oil Prices Dip On Rising Rig Count
Rising rig count in the U.S. pointed to higher production causing crude oil prices (USOIL) to dip in early Monday trading. Specifically Crude Oil WTI prices slid 0.5 percent lower at $67.81 as of 6:30 GMT this morning but held near more than three-year highs. It is important to note that currently, oil prices are still on track to rise for a second consecutive month. Prospects of the United States re-imposing sanctions on Iran, are expected to continue to support oil prices.*
2. Dollar Slows Down Awaiting Employment Data
The US dollar noted massive gains against all its major rivals last week as ten year US Treasury yields rose to record highs. Dovish central bank rhetoric from the European Central Bank (ECB) and the Bank of Japan (BOJ) have also allowed the USD to rally unhindered. Investors will now be looking to the latest U.S. Federal Reserve Open Market Committee (FOMC) meeting on Wednesday, May 2 for further direction. It should be noted that there is little chance that the Fed will hike rates in May, but strong data has put three more rate hikes firmly on the table. A hawkish stand by the Federal Reserve could therefore provide more support for the USD. Investors will also be looking forward to Friday’s Nonfarm Payroll data which will reveal how the US labour market is fairing. A stronger than expected NFP release could push the USD to new highs.**
3. Pound Investors Look To PMIs After Disappointing Q1 GDP
The GBP/USD lost 1.59 percent last week while it also traded lower on Monday morning. The currency pair tumbled after a disappointing GDP reading for the first quarter. This weak GDP data has spread serious doubts over a much hyped May rate hike by the Bank of England (BoE). The latest Gross Domestic Product data has revealed that the British economy had a slow start to 2018. With Bank of England (BoE) Governor Mark Carney surprising investors last week with comments suggesting the central bank could not hike rates in May, investors will now be looking at this Tuesday’s Manufacturing PMIs for more direction.***
You can find and trade all of the above mentioned equities and commodities on BDSwiss Forex/CFD platforms.
*Source: CNBC
**Source: Investing
***Source: Reuters
Upcoming Earnings Reports This Week:
30/4/2018 – McDonald’s Corporation (#MCD) to report pre-market
1/5/2018 – BP p.l.c. (#BP) to report pre-market
1/5/2018 – Merck & Co Inc. (#MRK) to report pre-market
1/5/2018 – Apple Inc. (#AAPL) to report post-market
2/5/2018 – Hugo Boss AG ADR (#BOSSY) to report pre-market
2/5/2018 – J Sainsbury plc (#JSNSF) to report pre-market
2/5/2018 – Tesla, Inc. (#TSLA) to report post-market
3/5/2018 – adidas AG ADR (#ADDYY) to report pre-market
3/5/2018 – Avon Products, Inc. (#AVP) to report pre-market
3/5/2018 – Bayer A.G. (#BAYZF) to report pre-market
3/5/2018 – DowDuPont Inc. (#DWDP) to report pre-market
4/5/2018 – Air France-KLM (#AFRAF) to report pre-market
4/5/2018 – Alibaba Group Holding Limited (#BABA) to report pre-market
4/5/2018 – Bayerische Motoren Werke AG ADR (#BMWYY) to report pre-market
4/5/2018 – HSBC Holdings PLC (#HSBC) to report pre-market
