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Today’s morning London session was apparently a consolidation period, since most currency pairs ended up trading sideways. The Loonie was on the move, though, and easily gave its peers a good stomping.

  • German IFO business climate: 112.9 vs. 112.4 expected. 112.4 previous
  • German IFO current conditions: 121.1 vs. 119.s expected, 119.5 previous
  • U.K. CBI industrial order expectations: 4 vs. 9 expected, 8 previous

Major Events/Reports:

U.K. election polling update – According to a poll conducted between April 21 to 24 by ICM for The Guardian, the Conservative Party extended its lead by capturing 48% of voting intentions, up from 46%. However, voting intentions for Labour also improved from 25% to 27%. Even so, the Conservative Party has a very comfortable 21-point lead against Labour.

Most commodities in demand, but precious metals slide – Most commodities were well-supported during the session. Precious metals were an exception, though, since it looked like they got the rug pulled from under them.

Oil benchmarks were in the green.

  • U.S. crude oil was up by 0.62% to $49.93 per barrel
  • Brent crude oil was up by 0.63% to $52.77 per barrel

Meanwhile, base metals were mixed but mostly in positive territory.

  • Copper was up by 0.35% to $2.560 per pound
  • Zinc was up by 0.84% to $2,611.75 per dry metric ton

As for precious metals, they were the exception since they got a good hammering.

  • Gold was down by 0.45% to $1,185.50 per troy ounce
  • Silver was down by 0.49% to $16.593 per troy ounce

The U.S. dollar index was down by 0.63% to 99.03 for the day when the session ended, which likely enticed bargain buyers to come out of the woodwork.

Other than that, market analysts also say that base metals were in demand because of the risk-friendly environment. However, the risk-friendly environment likely dented safe-haven demand for precious metals.

As for oil, market analyst say that the rise in oil prices was due to higher expectations that OPEC may extend it oil cut deal.

Very optimistic start in Europe – The risk-on vibes from the earlier session carried over into the European session.

  • The pan-European FTSEurofirst 300 was up by 2.18% to 1,516.73
  • Germany’s DAX was up by 3.13% to 12,425.25
  • The blue-chip Euro Stoxx 50 was up by 3.93% to 3,579.5

U.S. equity futures were also well in the green, hinting that the risk-on mood may also spillover to the U.S. session.

  • S&P 500 futures were up by 1.14% to 2,374.25
  • Nasdaq futures were up by 1.06% to 5,499.62

As with the earlier Asian session, market analysts are still pointing to relief buying in the aftermath of the first round of the French Presidential elections.

Major Market Mover(s):

CAD – The Loonie was in demand throughout the session.  There was no direct catalyst for the Loonie, but oil was higher during the session and it’s very likely that the Loonie was tracking oil prices.

USD/CAD was down by 46 pips (-0.34%) to 1.3429, EUR/CAD was down by 50 pips (-0.34%) to 1.4558, NZD/CAD was down by 33 pips (-0.35%) to 0.9438

Watch Out For:

  • 12:30 pm GMT: Canadian wholesale sales (2.1% expected, 3.3% previous)
  • 1:00 pm GMT: CB’s Chinese leading index (1.2% previous)
  • 3:30 pm GMT: Minneapolis Fed President Neel Kashkari will speak
  • 7:15 pm GMT: Minneapolis Fed President Neel Kashkari will speak again