Mid-Week Markets Bullet Report as Volatility hits highest Level this Year

Volatility in the Markets has hit its highest level this year, despite Easter Holidays approaching. Geopolitical tensions increased between the US and North Korea after the ‘toughest’ counteraction against the US in response to the dispatching of a big airplane carrier near North Korea. Also, concerns over Russian/ US relations over Syria and fading hopes for US tax reform and infrastructure spending, kept the market on its toes and traders are seen to be shifting finds to “safe” assets. 

  • Major events of the day: UK job data will be the main focus in the European session. The Bank of Canada (BoC) will also announce its rate decision later in the day and is widely expected to keep its interest rate unchanged at 0.50%.
  • Gold has jumped to $1281 highs so far, its highest level since 10th of November 2016. Important resistance is at $1284 and a breakout of this could open the way to $1320. The yellow metal gained sharply after U.S launched an air strike on targets in Syria as a direct response to a recent alleged chemical attack by the Syrian government.
  •  West Texas Intermediary (WTI) crude oil, also extended its recent rally to as high as 53.6, still on course to 55.24 being the key resistance level. Oil rose amid geopolitical tension, as did gold.
  • The biggest gainer was the JPY which hit a 5-month high of 109.33 against the USD. Elsewhere, EURUSD and GBPUSD remained more-or-less stable.
  • What should be stressed again is that both the VIX – measure of volatility in US equity markets and ‘safe haven’ spot gold prices – rose to its highest level since the US elections, while another ‘safe haven’, the Japanese yen, strengthened against the rest of the G10 overnight. This is a clear indication of market nervousness which could be the catalyst for very sharp moves.

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With over a decade of trading expertise and 100,000 fulfilled clients in 160 countries worldwide, easyMarkets will tick all your boxes whether you are a new or experienced trader, affiliate or introducing broker. Trade currencies, commodities, metals, vanilla options and indices from one place without the jargon, complicated offers and confusing terms! Welcome to the exciting world of trading. Welcome to easyMarkets.

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