This past quarter in the markets was one of the more interesting three-month periods we’ve had in a while. Not because of what took place, but rather, the lack of what took place, considering the boiling global geopolitical climate. Almost all of Q1 unfolded against a backdrop of zero volatility and confounding complacency not seen in over twenty years, that included an incredible 109-day streak of less than 1% moves in the S&P 500 end just shy of the quarter’s close.
Equity investors are starting the second quarter in a mildly bullish mood and hoping a flurry of business surveys at the beginning of the month will back up the market’s positive bias.
The EUR/USD has opened Monday's trading lower, which opens the possibility of the pair declining for its 5th consecutive session. This short term downtrend was established last week as the EUR/USD was technically rejected last week against its 200 day MVA (simple moving averaged), and then quickly declining beneath its 10 day EMA (exponential moving average). These averages now stand respectfully at 1.0832 and 1.0720, and are working as points of resistance as prices decline.
The Indian Rupee extended its uptrend versus the Dollar at the end of last week reaching new yearly highs of 64.76 on Friday.
South Africa's currency saw renewed pressure Monday morning as investors fret over the shock sacking of highly-respected Finance Minister, Pravin Gordhan, with his replacement beating the drum for a "radical economic transformation" agenda over the weekend.
World stock markets and the US dollar started the second quarter on a positive note on Monday, although caution also set in as the first meeting between US President Donald Trump and China's Xi Jinping loomed.
Next trading day's important events
- USDJPY: 110.98
- EURUSD: 1.065
- S&P 500: 2349.91
- NASDAQ: 5882.53