Metals shine as liquidity remains thin

Liquidity remained light and price action was relatively subdued as the holiday weekend continued with many markets closed for Easter Monday. With no notable data released, currencies resumed prior trends with the dollar drifting lower against most of the majors. EUR/USD climbed to current levels of around 1.4620 from a session low of nearly 1.4525, USD/JPY declined from session highs of around 82.40 to about 81.90 currently, and GBP/USD rose to current levels of around 1.6540.

In the commodity space, silver made new all time highs of nearly $49.80 with the aid of low liquidity. This surpasses prior highs of 1980. The precious metal has since corrected lower to current levels of around $49.00, and we would expect to sees some profit taking ahead of the key psychological $50 level. The yellow metal also rallied to new highs as gold reached nearly $1518.30.

U.S. markets will reopen and we expect liquidity to pick up as traders return from holiday. On the data front today we have U.S. March new home sales and the Dallas Fed Manufacturing Activity Index to be released at 1000ET and 1030ET respectively.

Source: Forex.com

25.04.2011