North korea impacts markets

North Korea fired a “short-range ballistic missile,” the third successful test in three weeks on Monday. The U.S. dollar edged up on Monday against major currencies, thus moving away from last week’s 6 ½ – month lows, setting North Korea’s missile in stride; and moving investors’ attention to the Fed’s expected interest rate hike due next month. GDP data on Friday indicated the U.S. economy was expanding as it grew by an annual rate of 1.2 percent in the First Quarter.

source: Reuters, Investing.com

Otherwise, Asian shares traded mixed despite the provocative missile test, as the Japanese Nikkei 225 and South Korea’s Kospi gained 0.20 percent and 0.49 percent respectively, while the Hang Seng index was down by 0.03 percent on Monday. On the commodity market, crude oil was seen off last week’s record highs as the Brent Crude and the U.S. West Texas Intermediate, both lost 0.3 percent today.

Many assets won’t be available for trade today as Markets in China, the U.K. and the U.S. will be closed for holidays. An event not to miss is the speech by the European Central Bank’ President, Draghi, scheduled at 13:00 GMT and this would have a direct impact on the euro and European indices as well. Japan will present its retail sales for April later at 23:50 GMT.

Technical Analysis

DXY

DXY

On Friday, the dollar index gained momentum as from 11:00 UTC at the 97.08 level to close this bullish trend by 13:00 UC at the 97.49 level. Today, the asset opened its session positively at 97.42 points at 00:00 UTC, and this was followed by bullish candles for the next two hours. The Ichimoku Cloud indicator suggests that the index may rise as from 15:00 UTC today.

JPN225

JPN225

The Japanese Nikkei 225 has been following a downtrend since Friday as it recorded several pullbacks to reach its lowest level at 19587 points around 11:00 UTC. Today, however, the asset started picking up heights since the very beginning of its session at 19681 points at 00:00 UTC. The index is expected to rise through 15:00 UTC and gradually consolidate later during the day.

UKOIL

UKOIL

The international benchmark Brent crude recorded several momentary jumps as from 15:00 UTC at the $51.49 level to close this bullish trend by 18:00 UTC at the $52.15 level on Friday. Brent crude started off its session bearish today at the $52.28 level at 00:00, followed by a downtrend for the next few hours till the $51.96 level at 03:00 UTC. The asset is expected to consolidate within similar ranges today.

Things to watch on the market

Tip 1

Since economists and analysts are assuming that the Federal Reserve will raise interest rates further, it would be a good opportunity to invest on the U.S. dollar and the dollar index with any trading tool available on our platform.

 

Tip 2

Investors are recommended to trade on Asian indices, the BRENT CRUDE OIL-APR16, and the Light Sweet Crude when these are made available on the Limits Trading.

 

Tip 3

Currency pairs such as EUR/USD, EUR/GBP, EUR/AUD and the EUR/JPY are all available for trade on the 60-Seconds tool today, while pairs containing JPY can be traded with the Long-Term trading.