Categories: Markets

Dollar Extends Rebound, Spotlight on EU Inflation and US Jobs Data.

Dollar Extends Rebound, Spotlight on EU Inflation and US Jobs Data.

This is what you need to know to trade today friday april 1:

The negative shift seen in risk sentiment amid rising geopolitical tensions helped the greenback gain strength against its rivals on Thursday. The US dollar index continues to rise early on Friday as the focus shifts to euro zone inflation data and the US March jobs report. The US economic docket will also feature the manufacturing PMI survey from ISM. Market participants will continue to monitor developments related to the conflict between Russia and Ukraine ahead of the weekend.

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Russian President Vladimir Putin announced Thursday that buyers of Russian gas “must open ruble accounts in Russian banks” to execute purchases from April 1. “If such payments are not made, we will consider it a breach by the buyers, with all the consequent consequences,” the president warned in a televised speech. After this event, the Russian Foreign Ministry said that it will respond if the European Union imposes sanctions.

Meanwhile, the US announced Thursday night that it has decided to impose additional sanctions targeting the Russian tech sector. Wall Street’s three major indices lost more than 1% on Thursday, but US stock index futures are trading flat early Friday.

Crude prices fell sharply on Thursday following the OPEC meeting and the US decision to release strategic oil reserves to ease pressures on energy prices. Later in the day, the International Energy Agency (IEA) will hold an emergency meeting to discuss a possible release of its strategic reserves. A barrel of West Texas Intermediate (WTI), which fell almost 6% on Thursday, was last seen losing almost 2% on the day at $99.20.

The EUR/USD lost over 100 pips on Thursday and remains on the defensive near 1.1050 early on Friday. Inflation in the euro area, as measured by the Harmonized Index of Consumer Prices (HICP), is expected to rise to 6.6% annually in March from 5.9% in February.

The GBP/USD closed virtually unchanged on Thursday and continues to move sideways above 1.3100 in European morning.

The gold advanced towards $1,950 on Thursday, but erased a large part of its daily gains before closing below $1,940. XAU/USD remains under modest downward pressure on Friday with the 10-year US Treasury bond yield rebounding after a three-day drop.

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The USD/JPY reversed direction and rallied towards 122.50 on Friday after closing the previous three days in negative territory.

Bitcoin fell sharply amid risk aversion on Thursday and extended its decline early Friday. BTC/USD was last seen losing more than 1% on the day below $45,000. ethereum lost 3% on Thursday and continues to drop towards $3,200.

Source: Fx Street