The euro reached a five-and-a-half month high against the US dollar when markets opened Sunday evening as exit polls in the French presidential election.
This comes after exit polls showed the independent candidate Emmanuel Macron gathered most of the votes in the first round of the French election.
His candidate Marine Le Pen is placed second in the first vote. Macron and Le Pen will dispute the presidency on May 7, when the runoff vote takes place. According to some financial analysts, the safe-haven bid should leave the U.S. Treasury market stabilizing the top side in EUR/USD.
U.S. commercial crude inventories decreased by 1 million barrels from one week ago, falling to 532.3 million, according to the Energy Information Administration (EIA).
Total motor gasoline inventories increased by 1.5 million barrels last week and are now near the upper limit of the average range. Crude fell in the previous two sessions. According to the secretary-general of the OPEC, Mohammed Sanusi Barkindo, the group was committed to cutting inventories to the five-year average.
Many analysts warned that prices could quickly turn negative. OPEC and other producers agreed to cut output by almost 1.8 million barrels per day in the first half of 2017.
British Prime Minister Theresa May called for an early general election as difficult Brexit negotiations get underway. According to her, the U.K. has a unique opportunity to form a unified government while the EU decides its negotiating position on Brexit. The early election is due to be held on June 8 but would a need a two-thirds majority by U.K. lawmakers before being made official.
A recent YouGov poll suggests that the governing Conservative party currently maintains the lead, garnering 44 percent of public support. The Labour party holds 23 percent and the Liberal Democrats trail behind with 12 percent.
Gold jumped more than 1 percent on Tuesday. Spot gold rose 1.48 percent to $1,272.75 per ounce, while U.S. gold futures for June delivery gained 1.71 percent to $1,275.40.
Investors sought assets seen as havens from risk as political and security tensions rose over North Korea, the Middle East and the uncertain result of the upcoming French presidential election.
Global tensions soared when Western countries were joined by Middle Eastern allies in a push to isolate Syrian President Bashar al-Assad following a chemical attack in the country. French elections were also a risk factor which boost demand for safe-haven assets among many investors.
The Dow Jones industrial average rose 150 points. UnitedHealth and McDonald's contributed the most gains on the Dow.
Private payrolls rose by 263,000 last month, above the estimate of 185,000. The February number was revised significantly lower from the originally reported 298,000. According to some analysts, most of the market participants were worried that last month's weather could have had an adverse impact on hiring. Other data released today the Institute for Supply Management non-manufacturing index which came in at 55.2, below an expected 57.
The euro fell to its lowest since March 15 against the dollar and lowest since March 3 against sterling, after German and Spanish consumer inflation slowed more sharply than expected. Financial analysts said the euro falling below a technically important level around $1.07 against the dollar triggered orders by traders to sell. That helped sink it to $1.0686.
The Commerce Department earlier reported that U.S. gross domestic product grew faster than previously reported in the fourth quarter last year thanks to robust consumer spending. The dollar rose today as a combination of technical trading and a theme of strong U.S. economic data and potential weakness in the euro zone.
Oil prices roses on data showing a smaller-than-expected increase in U.S. crude inventories supply disruptions in Libya and views that an OPEC-led output reduction is likely to be extended.
According to the Energy Information Administration, U.S. crude stocks rose last week, but refineries hiked output, causing gasoline stocks and distillate inventories to decline.
Gasoline stocks fell by 3.7 million barrels, versus projections in a Reuters poll for a 1.9 million barrels drop.
Crude inventories rose by 867,000 barrels last week, compared with analysts' expectations for an increase of 1.4 million barrels.
Distillate stockpiles, which include diesel and heating oil, fell by 2.5 million barrels, correlated with expectations for a 1.2 million barrels drop.
The Bank of England will test the risks associated with sterling dropping by a further 32 percent from today's level to undervalue at a low of 85 cents by year-end.
This scenario will form part of the stress tests the central bank is set to run this year. After a brief period of upside consolidation seen, The GBP/USD currency pair moves closer towards 1.2600, the highest levels since Feb 2.
The Brexit and high household indebtedness are some of the main risks to UK's financial stability, the Financial Policy Committee of the Bank of England said on Monday.
Gold rose to a three-week high as the dollar fell to near six-week lows and bond yields sank on uncertainty. Most of the investors became less bearish as a result of the subdued outlook for rates in 2018.
The lack of a concrete policy from the Trump administration is increasing gold's attraction as a safe-haven investment. The commodity was also supported by a further drop in U.S. Treasury yields, with the 10-year benchmark yield dipping below 2.4 percent for the first time since March 1.
Consumer prices rose by a stronger-than-expected 2.3 percent, the biggest annual increase. February's rise represented the first time in more than three years that inflation topped the BoE's target. The Governor of the Bank of England, Mark Carney, said it was important not to overreact to a single month's data. This is a consequence of the increase in global oil prices and the impact of the Brexit vote on sterling. The BoE has said it expects inflation will peak at 2.8 percent in the second quarter of next year. Most economists say it is likely to hit 3 percent. The BoE underestimated the extent of inflation's rise after the global financial crisis which also caused a sharp fall in sterling.