The euro and sterling remain under pressure

Tuesday, April 15, 2014

The British Retail consortium Index (BRC) showed sales fell sharply by 1.7% in March y/y, while food sales were down 2.7%, partially due to lack of consumption. The London equity benchmark index has been consolidating around 6570 in early trade this morning, while the DAX and IBEX indices reversed from yesterday’s gains and slid lower this morning.

The euro remains under pressure, trading around 1.38 against the US dollar. The release of the CPI inflation data from the UK and the US could offer further momentum to the equity and commodity markets. Sterling trades around 1.669 against the US dollar.

EUR Spot

EUR Curncy (Euro Spot )  Daily 15 2014-04-15 09-04-38

GBP Spot

GBP Curncy (British Pound Spot )  2014-04-15 09-04-56

In the US, the Dow Jones index posted strong gains on Monday, gaining almost 150 points up 0.91%, while the S&P 500 and the Nasdaq have also climbed higher by 0.82% and 0.57%, respectively.

Brent front month futures have reversed and slid lower in early trade this morning trading around $108.5 per barrel, due to some profit taking following yesterday’s high at $109.12 per barrel. The political tensions in Ukraine continue to dominate the oil market, causing high volatility amid concerns about oil supplies in the region. The release of the weekly API oil inventories report after the close of today’s trading session will provide further signs regarding US oil fundamentals.

In company news in the oil market, Glencore Xstrata has bought oil group Caracal for $1.35 bln to expand its oil activities, abandoning merger with Canada’s TransGlobe.  

CO1 Comdty (Generic 1st 'CO' Fut 2014-04-15 09-04-16

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