May 8, 2018
US stocks traded higher on Monday boosted by US Crude oil prices and Apple’s gaining streak. The US crude oil traded above $70 for the first time since November 2014. Technology companies were supported by the strength of Apple. Apple gained for the sixth straight day on Buffett’s bullish view. However, US indices gave up the gains as president Donald Trump tweeted that he will be announcing his decision on Iran today.
The dollar index rose to fresh four-month highs yesterday as investors are still confident that the US economy is on the right track. The major factor that might affect the US dollar in the coming days is the decision of President Donald Trump on the Nuclear deal. His announcement might impact the risk sentiment and lead investors to jump into risk-off trading.
The Australian dollar traded lower against the US dollar after a disappointment in the retail sales numbers. However, a better than expected trade balance report from China showed that the Chinese Imports rose by 21.5% in April helped the Aussie in recovering the losses. Australia is well-known for its exports of raw material to China. The Aussie fell by almost eight percent since late January since the Australian economy is far from recovering properly leaving no chance for an interest rate hike anytime soon.
Gold prices ended the day little unchanged as investors wait for the announcement of President Donald Trump on the nuclear deal. An aggressive tone will raise the demand for the metal that is known to be a safe haven in a time of uncertainty and risk.
Oil prices retreated from three-year highs as investors await the announcement on the nuclear deal. Oil was being boosted lately by the expectations that Trump will re-impose sanctions on Iran which will curb Iranian oil exports thus leading to a tighter supply in the markets. Some analysts expect that the oil price is already pricing in that Trump will restore sanctions. However, oil price will be affected by the size of lost supplies. The American Petroleum Institute (API) oil supply is due today.
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