The day’s eye-catching moves came in the energy market.
The oil market has observed a shoot in oil price on Monday to its highest since late 2014, on a more concerning economic crisis in Venezuela and concerns that the U.S. could re-impose sanctions on Iran, while stocks firmed and the dollar rose towards its 2018 peak. U.S. crude oil prices rose 70 cents (1%), rising above $70 a barrel for the first time since November 2014. Venezuela, as an OPEC member state, threatened to further crimp its production and expo.
Also driving oil prices higher is U.S. President, Donald Trump’s May 12 deadline for Europeans to handle the deal with Iran, an oil-producing republic, over its nuclear program. If they do not, Trump has promised to refuse to extend U.S. sanctions relief to Iran.
The dollar strengthened back towards the 2018 peak it reached on Friday when investors shrugged off the weaker-than-expected jobs report to extend the currency’s 2-1/2 week-long rally.
The dollar, which has enjoyed a sudden reversal in fortunes as investors bet on more Fed rate hikes and a slower pace of tightening in the eurozone, rose 0.3 percent versus the euro to $1.1928. Measured against a basket of currencies, the dollar index was 0.3 percent stronger at 92.811, not far from the 92.9 it hit on Friday – its highest since December.
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