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Europe is closed for the Easter Monday holiday, so trading conditions were a bit tight. Today’s morning London session wasn’t a complete snooze fest, though, since the Kiwi showed some directional movement throughout the session. In addition, the yen later joined in on the fun when it got inundated by sellers near the very end.

  • Most of Europe away for the Easter Monday holiday

Major Events/Reports:

Tight trading conditions – Most European markets were closed for the Easter Monday holiday and there wasn’t anything on the docket. Market-moving news were also absent during the session. As a result, volatility and directional movement were both in short supply during the morning London session. Don’t get complacent, though, since the U.S. is going to be open for business later.

Commodities climb, while oil stumbles – Commodities were mostly in the green during the morning London session. I said “mostly” because oil was a clear exception.

Precious metals got bid higher.

  • Gold was up by 0.23% to $1,291.50 per troy ounce
  • Silver was up by 0.38% to $18.580 per troy ounce

Base metals, meanwhile, were in high demand.

  • Copper was up by 0.72%% to $2.589 per pound
  • Zinc was up by 0.98% to $2,625.25 per dry metric ton

Oil benchmarks found no love, however.

  • U.S. crude oil was down by 0.90% to $52.70 per barrel
  • Brent crude oil was down by 0.88% to $55.40 per barrel

The commodities rally was likely being fueled by bargain buying. After all, the U.S. dollar index was down by 0.29% to 100.20 for the day when the session ended.

Base metals were noticeably in high demand, though. And market analysts attributed that to optimism and expectations of higher demand after China printed strong GDP data.

Oil, meanwhile, went against the flow by printing losses. And that was apparently due to worries that higher U.S. oil output would frustrate OPEC’s efforts to bring balance to the market through its oil cut deal, market analysts say.

Major Market Mover(s):

NZD – The Kiwi scored wins across the board to emerge as the top dog of the London session. There weren’t any apparent catalysts, but it’s likely that the Kiwi was tracking the commodities rally.

And I didn’t mention it earlier, but iron ore was another exception to the commodities rally. And that’s probably why the Aussie was more mixed and failed to put up a challenge against the Kiwi.

The Loonie, meanwhile, also had a mixed performance, likely because oil was in retreat during the morning London session.

NZD/USD was up by 10 pips (+0.13%) to 0.7022, NZD/CAD was up by 9 pips (+0.10%) to 0.9335, NZD/JPY was up by 21 pips (+0.28%) to 76.18

JPY – Most yen pairs were milling about in tight ranges during the session. However, the Kiwi got hit by sellers near the very end.

There was no apparent reason for the yen’s sudden weakness. However, it’s possible that traders who shorted the yen during the earlier Asian session (or anytime last week) were taking profits off the table before the U.S. session rolls around.

USD/JPY was up by 16 pips (+0.14%) to 108.49, EUR/JPY was up by 34 pips (+0.30%) to 115.44, GBP/JPY was up by 30 pips (+0.22%) to 136.12

Watch Out For:

  • 12:30 pm GMT: U.S. Empire State manufacturing index (15.2 expected, 16.4 previous)
  • 2:00 pm GMT: U.S. NAHB housing market index (70 expected, 71 previous)
  • 8:00 pm GMT: U.S. TIC long-term purchases ($12.4B expected, $6.3B previous)