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Nikkei Dips on New Fiscal Year, Gold Soars to New Highs, Currencies Unmoved

Activity in global financial markets remain generally subdued due to the extended Easter holiday in many regions. Nevertheless, Japan's markets kicked off the new fiscal year on a tumultuous note, with Nikkei index having a sharp sell-off. Analysts have largely dismissed the latest quarterly Tankan survey as the catalyst for this downturn. Instead, the sell-off could be attributed to institutional investors engaging in profit-booking activities typical of the financial year's commencement. Meanwhile, Yen remained relatively stable, showing little reaction and maintaining a very tight range amid the market activity.

Post-Holiday Forex Awakening: Dollar Strengthens on Surprising ISM Manufacturing Expansion

The forex markets roared back to life from holiday lull in early US session, Dollar surges broadly as buoyed by unexpectedly strong ISM manufacturing data. This report marks a pivotal shift for the sector, which has transitioned back into expansion after 16 months of contraction. Additionally, the prices component of the report soared to its highest level since mid-2022. This resurgence poses the question of whether the greenback can sustain its newfound momentum, with further scrutiny from upcoming ISM Services and Non-Farm Payroll data anticipated later in the week.

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