Silver price (XAG/USD) holds gains after recovering daily losses, trading around $73.30 per troy ounce during the European hours on Monday. 🔗 Source

OCBC strategists Sim Moh Siong and Christopher Wong highlight that higher Oil prices and safe-haven flows have re-anchored the Dollar, reversing expectations for a steady USD decline. 🔗 Source 💡 DMK Insight Higher oil prices are shifting the USD narrative, and here’s why that matters: As oil prices rise, the dollar often strengthens due to increased demand for USD in global transactions. This recent shift indicates that traders might need to reassess their positions, especially if they were betting on a weaker dollar. The safe-haven flows into the dollar suggest that market sentiment is becoming more risk-averse, which could lead to volatility in riskier assets like equities and cryptocurrencies. If the dollar continues to strengthen, it could pressure commodities priced in USD, potentially leading to a correction in oil prices. Traders should keep an eye on key levels for the dollar index, particularly if it approaches resistance around recent highs. Additionally, watch for any economic indicators that could further influence oil prices, such as inventory reports or geopolitical tensions. The interplay between oil and the dollar is crucial right now, and any unexpected shifts could create trading opportunities or risks that savvy traders won’t want to miss. 📮 Takeaway Monitor the dollar index for resistance levels as rising oil prices could signal a stronger USD, impacting risk assets and commodities.

US benchmark West Texas Intermediate Oil (WTI) depreciated about $5 from session highs on Monday, hitting lows near $101.00 per barrel, from $106.44 highs, weighed by news that the US and Iran might be bringing positions closer to a peace deal through international intermediaries. 🔗 Source 💡 DMK Insight WTI’s drop to around $101 per barrel signals shifting dynamics in oil markets. The recent decline from $106.44 highlights how geopolitical developments can swiftly impact prices. Traders should note that a potential peace deal between the US and Iran could lead to increased oil supply, which historically pressures prices downward. If negotiations progress, we might see WTI testing support levels around $100, a key psychological barrier. On the flip side, if tensions escalate, we could see a rapid rebound, making it crucial to monitor news updates closely. For those trading oil, keep an eye on the daily chart for any signs of reversal or further declines. A break below $100 could trigger stop-losses and accelerate selling, while a bounce back could signal a buying opportunity if accompanied by strong volume. Watch for any announcements regarding the negotiations, as they could create volatility in the short term. 📮 Takeaway Watch for WTI’s reaction around the $100 level; a break could signal further declines, while a bounce may present a buying opportunity.

The AUD/USD pair trades 0.5% higher to near 0.6930 during the European trading session on Monday. The Aussie pair strengthens as riskier assets trade firmly amid ongoing discussions between the United States (US) and Iran regarding an end to the Middle East war. 🔗 Source 💡 DMK Insight The AUD/USD’s 0.5% rise to around 0.6930 signals a shift in risk sentiment, driven by geopolitical developments. As talks between the US and Iran progress, traders are leaning towards riskier assets, which often boosts currencies like the Aussie. This uptick could indicate a broader market trend where risk appetite returns, especially if the negotiations yield positive outcomes. For day traders, this could mean looking for short-term buying opportunities in AUD/USD, particularly if it breaks above resistance levels around 0.6950. However, keep an eye on any sudden shifts in geopolitical news that could reverse this trend quickly. On the flip side, if talks stall or escalate tensions, we might see a rapid sell-off in AUD/USD, making it crucial to monitor the news closely. Watch for volatility in related markets, such as commodities, which could also impact the Aussie dollar’s performance. Overall, the next few sessions will be pivotal for gauging the sustainability of this upward movement. 📮 Takeaway Watch for AUD/USD to break above 0.6950 for potential bullish momentum, but stay alert for geopolitical news that could trigger volatility.

The Euro (EUR) is trading higher against the US Dollar (USD) on Monday, favoured by a moderate improvement in market sentiment, amid news of a potential ceasefire in the Iran war. 🔗 Source 💡 DMK Insight The Euro’s rise against the Dollar signals shifting market sentiment, and here’s why that matters: A potential ceasefire in the Iran war could ease geopolitical tensions, which often leads to a stronger Euro as investors seek stability. This shift might prompt traders to reassess their positions, especially if the EUR/USD pair continues to break above key resistance levels. Look for the Euro to test recent highs; if it clears those, it could open the door for further gains. On the flip side, if the ceasefire news fizzles out, we might see a quick reversal, so keep an eye on volatility indicators. Also, watch related assets like oil, as a ceasefire could impact prices and, in turn, affect currency pairs tied to commodity movements. In the coming days, traders should monitor the EUR/USD closely, particularly around any new developments regarding the ceasefire. If the Euro can maintain its momentum, it could signal a shift in the broader market trend, making it a key player in upcoming trading strategies. 📮 Takeaway Watch the EUR/USD for potential resistance breaks; a sustained move above recent highs could indicate further Euro strength amid easing geopolitical tensions.

The United States (US) Institute of Supply Management (ISM) Services Purchasing Managers’ Index (PMI) data for March is scheduled to be published today at 14:00 GMT. 🔗 Source 💡 DMK Insight The upcoming ISM Services PMI data release could shake up market sentiment significantly. Traders should keep an eye on this indicator, as it reflects the health of the services sector, which is a major component of the US economy. A stronger-than-expected reading could bolster the dollar and lead to a sell-off in risk assets, while a disappointing figure might trigger a flight to safety. Given the current volatility in forex and crypto markets, this data point could serve as a catalyst for price movements. Watch for how the market reacts around the 14:00 GMT release; it could set the tone for the rest of the week. If the PMI comes in above 55, it may signal robust economic activity, potentially pushing USD pairs higher, while a reading below 50 could indicate contraction, impacting equities and crypto negatively. 📮 Takeaway Monitor the ISM Services PMI release at 14:00 GMT today; a reading above 55 could strengthen the dollar and impact risk assets significantly.

BNY’s Head of Markets Macro Strategy Bob Savage notes the Japanese Yen continues to weaken with USD/JPY near 160 as JGB yields hit multi‑decade highs and the Bank of Japan (BoJ) maintains a hiking bias. 🔗 Source 💡 DMK Insight The USD/JPY nearing 160 signals a critical juncture for traders: The Japanese Yen’s persistent weakness is largely driven by soaring JGB yields, which are at multi-decade highs. This dynamic is a direct result of the Bank of Japan’s (BoJ) commitment to a hiking bias, creating a stark contrast with other central banks that may be pivoting towards easing. For traders, this means that the USD/JPY pair could continue to trend upward, especially if the BoJ maintains its stance while other economies show signs of slowing. Look for key resistance levels around 162, which could trigger further bullish momentum if breached. Conversely, if the Yen finds support around 158, it might indicate a potential reversal or consolidation phase. Keep an eye on economic indicators from Japan and the U.S. that could influence this pair, as any shifts in sentiment could lead to volatility. The real story here is how the BoJ’s policies could ripple through other markets, particularly impacting commodities priced in Yen and global risk sentiment. 📮 Takeaway Watch for USD/JPY to test 162; a break could signal further upside, while support at 158 may indicate a reversal.

The Pound (GBP) is trading higher against the Japanese Yen (JPY) on Monday, favoured by a moderate optimism amid news of a peace plan to end the war in Iran. 🔗 Source 💡 DMK Insight The Pound’s rise against the Yen is a signal of shifting market sentiment amid geopolitical developments. Optimism surrounding a potential peace plan in Iran is driving currency traders to reassess risk, which could lead to increased volatility in both GBP/JPY and related pairs. If this sentiment holds, traders should watch for key resistance levels in GBP/JPY, particularly if it approaches recent highs. A sustained move above these levels could trigger further buying, while a reversal might indicate profit-taking or renewed risk aversion. Additionally, keep an eye on broader market indicators like bond yields and commodity prices, as they could influence currency flows. The flip side is that if the peace talks falter, we might see a quick reversal in sentiment, leading to a sharp pullback in GBP/JPY. Watch for any updates on the peace negotiations and how they impact market sentiment, especially in the coming days as traders react to news cycles. 📮 Takeaway Monitor GBP/JPY closely; a break above recent highs could signal further gains, while any news setbacks might trigger a quick reversal.

The Pound Sterling attracts significant bids against the US Dollar (USD) on Monday, rising 0.45% to near 1.3255 during the European trading session. 🔗 Source 💡 DMK Insight The Pound’s 0.45% rise against the USD to around 1.3255 is a significant signal for traders right now. This uptick suggests renewed bullish sentiment, likely driven by market expectations around upcoming economic data releases or potential shifts in monetary policy. Traders should keep an eye on key resistance levels, particularly around 1.3300, which could act as a barrier for further gains. If the Pound can break through this level, it might trigger additional buying from both retail and institutional investors, potentially leading to a stronger rally. However, it’s worth noting that this move could be short-lived if broader market conditions shift, especially with ongoing geopolitical tensions and inflation concerns. A pullback below 1.3200 could indicate a reversal, so monitoring these levels is crucial for positioning. Watch for any news from the Bank of England or U.S. economic indicators that could impact the USD, as these will likely influence the Pound’s trajectory in the coming days. 📮 Takeaway Traders should watch for a break above 1.3300 for potential bullish momentum, while a drop below 1.3200 could signal a reversal.