European futures are trading higher while the US markets are closed today for a bank holiday. Trading volume in the stock market is likely to remain on the low side due to the absence of the US trading session.
The Asian stock market mainly traded higher on the week’s first trading. The Nikkei index soared by 1.97%, while the HSI and KOPSI indices rose by 1.80% and 1.16%, respectively. The Shanghai index had a minor bump of 0.33%.
The dollar index will be under focus this week as traders will be looking at several important events, such as the US NFP data, which will be released on Friday. The dollar index has started the week on a positive note, and it is trading at 101.63, which is still below the recent highs of 103.
The Japanese Yen continues to consolidate around the 127 price mark. Traders believe that the USD/JPY could test its next resistance at 130.
This week, the Aussie dollar will likely see more retracement after the currency climbed to 0.73. The main event for the currency is the RBA’s interest rate meeting which will be taking place next week.
Oil prices continue to trade higher while traders keep an eye on the possibility of an embargo on Russian oil. The EU has failed to reach an agreement to put an embargo on Russia, but speculators believe that they could hear more development on this matter today.
Brent oil is trading above the $115 price level, a significant resistance level. The price has broken this resistance, which shows bulls may try to push the price to $120 per barrel.
Gold’s price is trading in positive territory for the second consecutive week. When it comes to the gold price, traders are looking at one thing and one thing only: the Fed’s monetary policy stance. So far, it is pretty clear that the Fed is on autopilot, and they will be increasing the interest rate by 50 basis points, supporting the gold price. However, the Fed’s monetary policy is data-dependent, and any weakness in economic numbers or higher inflation readings are likely to influence the dollar index and the gold price.
Bitcoin price seems to be picking up some positive momentum as the price is flirting with the 30K price level. Traders are keeping a close eye on crypto’s correlation with the stock market. During the past week, we did see higher moves in the stock market, but we didn’t see the same enthusiasm in the crypto market, which means the correlation between the two is under threat.
Terra 2.0’s launch is an essential event for the industry after the massive collapse of Terra 1.0. It will be incredibly difficult for traders to believe in Terra 2.0, but speculators will be keeping a close on its price. Crypto traders were severely burned during Terra’s crash, and it is not going to be easy for its creator, Do Kwon, to win the community back again.