crude oil

With most of the world celebrating Labour day, expect UK and US, markets are expected to be active worldwide, but with a sharp decrease of volume. No macroeconomic releases are expected in the EU, with markets focusing on UK’s and US’s Markit Manufacturing PMI release today.

Japan’s Nikkei services PMI as well as consumer confidence index, both for April, will garner a lot of attention, after Japanese markets resume activity from a long weekend. The dollar rose above the yen, and trading at 109.38 levels.

The British pound’s trading to be determined by the release of UK’s Markit manufacturing PMI for April, showing UK’s manufacturing sector activity in April. The GBP/USD pair is in a downside move, with the pound declining to 1.3760 levels.

Crude Oil rose against the USD, buoyed by increased tension in the Middle East, after Israeli Prime Minister, Benjamin Netanyahu, accused Iran of lying about its nuclear ambitions. Separately, the Energy Information Administration (EIA) reported that US crude oil production jumped 260,000 barrels per day (bpd) to 10.26 million bpd in February.

Gold declined against the USD, with the pair trading at 1312. Support lies at 1310, and a fall through could take it to the next support level of 1303, while resistance lies at 1316, with a rise through could take it to the next resistance level of 1320.