【Top1 Evening】Oil falls as Suez Canal ship re-floated. The virus drags down the EUR

Forex: EUR weaken 

The euro recorded its biggest monthly decline since mid-2019. The euro's weak trend below $1.18 on Monday, as France and Germany may tighten epidemic control measures, dragging down European economic prospects in the short term.

The euro is likely to record its biggest one-month decline since mid-2019, because Europe’s weak vaccination plan is facing the advent of a new wave of epidemics, despite data showing that investors still hold a large number of long positions in euros.

The euro/dollar fell 0.1% in early London trading to $1.1774, not far from the four-and-a-half-month low of 1.1762 hit last week. The euro has fallen 2.3% so far this month, the biggest drop since July 2019.

The dollar index was steady at 92.810, slightly lower than the 92.92 high since November 2020 reached last week.

The Australian dollar/US dollar fell 0.3% to US$0.7621, the New Zealand dollar/US dollar fell 0.3% to US$0.6978, and the British pound/US dollar fell 0.2% to US$1.3767.

Gold: Gold prices fall

Gold prices fell on Monday as the US dollar and global stock markets strengthened under the support of improved economic prospects, and high bond yields also put further pressure on gold prices.

Spot gold fell 0.3% to US$1,726.35 per ounce, while US gold futures fell 0.4% to US$1,724.80 per ounce. "Yield is a major threat to the price of gold in the near term," said Michael McCarthy, chief market strategist at CMC Markets. "If the bond selling momentum intensifies, the price of gold may soon'drop below $1,700."

U.S. Treasury bond yields remained near the one-year high reached on March 18. The U.S. dollar began to strengthen this week, as the U.S. economy is strong and the vaccination progress is much faster than Europe, attracting investors to buy U.S. dollars.

Crude oil: oil prices plummeted

The Ever Given freighter, which has bottomed and stranded on the Suez Canal a few days ago, has straightened its hull. Two shipping sources said that the freighter has resumed its normal route. After the news, international oil prices fell by more than 2% on Monday.

Brent crude oil futures fell 2.1% to 63.19 US dollars per barrel; US crude oil futures fell 2.45 to 59.49 US dollars per barrel.

In the past few days, crude oil prices have fluctuated sharply, and traders and investors have tried to weigh the wider impact of the Suez Canal stranding and the blockade to contain the new crown epidemic.

Jeffrey Halley, senior market analyst at OANDA, said that such market volatility is bound to continue.

Stock market: individual developments in European stock markets

Hong Kong's Hang Seng Index opened lower in the morning and then fell back and turned down again, and gradually narrowed its decline in the afternoon. The Hang Seng Index rose 0.01% to 28,338.30 points.

European stock markets developed individually in the early stages. The latest British FTSE index reported 6,731 points, down 9 points, or 0.14%; the German DAX index, latest 14,766 points, up 17 points, or 0.12%; the French CAC index, latest 5997 points, or 8 points, an increase 0.14 percent.

Focus

20:00 Initial value of the annual rate of the German Consumer Price Index (March)

22:00 CB Consumer Confidence (March)