Here's what you need to know for Monday, April 4th:

In the stock market, the US Dollar Index remains relatively calm in the mid-98.00s, supported by a more than 1% increase in the benchmark 10-year US Treasury bond yield and a 0.2% increase in US stock index futures. The economic report will not include high-impact data releases on Monday, and market participants will continue to focus on geopolitical headlines.

Last Minute Progress in War

There seems to be a positive shift in risk sentiment at the start of the week as investors are once again optimistic about finding a diplomatic solution to the Russia-Ukraine conflict. Over the weekend, a senior Ukrainian negotiator said they had reached an agreement on enough elements of a potential peace deal that was ready to be discussed between Russian President Vladimir Putin and Ukrainian President Volodymyr Zelensky. Meanwhile, US Secretary of State Antony Blinken said the West could lift sanctions against Russia depending on the outcome of the upcoming negotiations.

In the Stock Exchange Today

EUR/USD is moving sideways in a narrow range near 1.1050 early Monday. Data from Germany earlier in the day showed that the trade surplus fell to 11.5 billion euros in February from 11.6 billion euros in January, but the euro failed to help find demand compared to the market's 9.6 billion euro expectation. .

GBP/USD  rose in the European morning and was last traded near 1.3130. Eyes on the speech of the Governor of the Bank of England, Andrew Bailey.

USD/JPY, which fluctuated wildly last week, remains calm on Monday and is trading in positive territory above 122.50. Seiji Kihara, Japan's Deputy Cabinet Secretary, expressed his support for the overly relaxed policy of the Bank of Japan (BOJ). "Tightening monetary policy is difficult to deal with cost inflation, which means monetary policy must remain relaxed," Kihara said, adding that relaxed policy is necessary during the fragile economic recovery.

Gold started the new week under modest bearish pressure and dropped to last week's lower bound. Rising US T-bill yields and improving market mood are putting pressure on the yellow metal so far in the day.

USD/CAD is trading in the red near 1.2500 after closing the previous two trading days higher. The Bank of Canada will release its Job Outlook Survey later in the day.

Bitcoin is struggling to make a decisive move in either direction and has been hovering around $46,000 in the early hours of Monday. Ethereum hit $3,580 on Sunday, its highest level since the first week of January, but pulled back as low as $3,500.

You may also be interested in: Exchange Rate and Inflation Forecasts for Turkey