Currency Majors Are Consolidating. Trading Activity Is Low due to Holidays

Last week, the US dollar strengthened against a basket of major currencies. The dollar index (#DX) updated monthly highs and closed in the green. On Friday, the United States published weak statistics on the real estate market. Thus, the number of building permits counted to 1.269M in March, while experts forecasted 1,300M. Market activity was weak due to Good Friday. Today we also expect low volatility in the markets due to the Easter holidays.

From May, the United States intend to end sanctions waivers to a number of countries that import Iranian oil. Oil quotes are also growing against the instability in Libya and Venezuela. It should be recalled that the US imposed sanctions against Iran in November last year while giving 8 countries permission to continue purchasing Iranian oil until May 2, 2019, provided that they gradually reduce imports. These countries include China, India, Italy, Greece, Japan, South Korea, and the Taiwan authorities. Greece, Italy and Taiwan have already reduced their oil imports. China and India are still the largest importers of Iranian oil.

The "black gold" prices continue to show positive dynamics. Oil quotes have updated annual highs again, which supports the demand for commodity currencies. At the moment, futures for the WTI crude oil are testing $65.75 per barrel.

Market Indicators

On Friday, the US stock market did not work due to the Easter holidays.

The 10-year US government bonds yield is at 2.56-2.57%.

The news feed for 2019.04.22:

- Existing home sales in the US at 17:00 (GMT+3:00).

by JustForex, 2019.04.22

We advise you to get acquainted with the daily forecasts for the major currency pairs.

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

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