In today’s European session we get from Germany the trade balance figure for February, while in the American session, we get Canada’s housing starts figure for March and the US factory orders growth rate for February.
The USD weakened initially, yet made some gains as the US employment report for March was released on Friday. The report showed a slower growth in average wages than expected, yet the overall picture of the US employment market remains tight as the NFP figure rose by a solid 196k. Analysts point out that the data released may not point towards a rate cut nor a rate hike for the Fed as they fail to provide any decisive incentives for either. Other headlines, seem to suggest that the US-Sino negotiations show some progress as the two sides wrapped up the latest round, yet a solution may require more time.
WTI prices continued to rise in a bulls market, reaching a 5 month during today’s Asian session. Analysts cite OPEC’s continuous supply cuts along with US sanctions on Venezuela and the Iran, as the main drivers behind the surge. On the demand side, optimism about the US-Sino negotiations seems to be also boosting prices. Energy consultants seem to be viewing prices as poised for further rises as excess inventories should start fading away and the market looks healthy. On the other hand a possible rise of Russian and US production levels could undermine oil prices.