Dollar edges lower in holiday thin trade, upbeat oil price drives loonies

by   |  VIEW 551
Dollar edges lower in holiday thin trade, upbeat oil price drives loonies

On Monday, the 22nd of April 2019, the American Dollar was little changed against a basket of six major currencies on an average at a holiday-impacted trading session, while trading volumes were much thinner except crude oil, which experienced a robust upsurge following declaration of US sanction on Tehran, reigniting worries of another supply crunch amid OPEC production cut and Venezuela crisis.

Besides, the oil-dependent currencies like of Canadian dollars, Russian Ruble and Australian dollar (widely known as the loonies) had posted modest gains, as sanctions of Iranian oil would likely to brighten crude oil price outlook, which might have been at the verge of a havoc-scale lift, several analysts commented following the end of sanction waivers for major Iranian oil importers.

The American dollar index (DXY), measured against an average of six major currencies, was trading 0.15 percent lower at 97.32 during the preparation of the report, April 22nd, GMT. 23.00, after breaching a two-week high at 97.48 last week.

While financial markets in Australia, Hong Kong and many major countries over Europe were closed on Monday (April 22nd) due to Easter holidays, the American dollar was almost flatlined against the Japanese Yen, and Euro added a slight gain of 0.06 percent to $1.1260 against US dollar.

Adding that the trading volume is expected to be light in a near-term outlook, a global head of Forex at Jefferies based on New York, Brad Bechtel said, “With much of the market still out on Easter and Passover related holidays there is not a whole lot to chew on to start the week”.

As beforementioned, crude oil price had been the major driving factor on Monday (April 22nd) market, the Canadian dollar gained 0.2 percent to $1.3347 against US dollar, while Ruble had hit its highest level against Euro since last April and a monthly high against US dollar.

In point of fact, traders would be closely watching the US GDP report due on Friday (April 26th) for further inklings on Dollar index directives, multiple analysts suggested.