Traders are slowly returning from a well-deserved Easter break, with volumes set to recover fully tomorrow.
With the week starting on a softer pace, the US Dollar is taking a step back to leave some space for other FX currencies, Bitcoin (reaching $70,000!) and Equities after having worked overtime until today.
Optimism had made a sharp return throughout last week as Traders began to price in a proper truce in Iran, but this isn’t such a given, as Iran reportedly still believes it can leverage the US’s precipitated demands for a deal to tilt the scales in its favor.
Stocks across the globe are still way off their War troughs, with market sentiment tilting more towards a short operation than a catastrophic long war, as observed in Vietnam, Afghanistan, and Iraq – enough to limit a prolonged bear trend.
The War itself is advancing at a remarkable pace, but the main element of turmoil across the region remains the Strait of Hormuz and its link to global Oil prices.
It has been easy for Participants to ignore the pricing of imminent Rate Hikes in upcoming meetings of global Central Banks, but this reality could hit like a train if WTI and Brent remain above $100 for much longer.
Tomorrow will be decisive in that aspect, as the US President announced throughout the weekend that Tuesday evening (8:00 PM ET) will be the deadline for a deal – And Iran just rejected the proposed 45-Day Ceasefire deal that would lead to a longer-lasting peace.
The Islamic regime is still persistent in maintaining its threatening ballistic missile program, which has caused damage all around the Middle East since the commencement of the War.
To get ready for this week, which looks to be a heavy one (US CPI on Friday!) , let’s examine the intraday charts and trading levels for the major US indexes: the Dow Jones, Nasdaq, and S&P 500.