The big story to start the new week is the surprise oil production cut by the Gulf States, and that led to a gap higher in oil prices with WTI crude breaching $80 earlier in the day. It's quite a bullish turn in the market but the technicals are also something to consider at the moment, as highlighted here.
Looks like the joke is on Biden and the US government as they didn't really snatch the opportunity to replenish their SPR levels. 🤪
In the major currencies space, the dollar is the lead gainer as it looks to build back some momentum. EUR/USD is facing a bit of a short-term double-top at around 1.0920-30 in a fall back below 1.0800 currently. Meanwhile, USD/JPY is working its way back towards its 100-day moving average at 133.80 with higher bond yields also helping with sentiment.
As we approach the session ahead, there will be some data points to move things along with euro area manufacturing PMI prints being the highlight. But these are final readings, so they shouldn't offer much of anything new.
0630 GMT - Switzerland March CPI figures
0715 GMT - Spain March manufacturing PMI
0730 GMT - Switzerland March manufacturing PMI
0745 GMT - Italy March manufacturing PMI
0750 GMT - France March final manufacturing PMI
0755 GMT - Germany March final manufacturing PMI
0800 GMT - Eurozone March final manufacturing PMI
0800 GMT - SNB total sight deposits w.e. 31 March
0830 GMT - UK March final manufacturing PMI
That's all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.
