The U.S. indices are off and running, looking to extend the gains of the past six sessions. For the first half-hour of trade, the DJIA DOW (+105), S&P 500 SPX (16.25), and NASDAQ (57.50) are firmly positive. With no primary market movers due out until Wednesday’s CPI report, U.S. equities are in a position to test April’s high by week’s end.
The GBP has been quite weak during May as the odds of Theresa May’s Brexit deal passing the British Parliament kept tumbling, which eventually led to the fourth and last rejection of the deal. Theresa May announced her resignation and now a race has begun for her successor. So, the politics have turned totally bearish for the GBP and fundamental have turned bearish as well. Yesterday we saw the GDP report post the second consecutive contraction in April of 0.4% after the first contraction in May, while manufacturing and industrial production, as well as construction output posted a major decline. As a result, market participants were expecting another soft report today for earnings.
Crude oil prices rose due to the strong bullish sentiment. While the expectations that producer cartel OPEC and Russia would like to extend supply output cuts in support of low prices.
It’s been a wild start to June across global markets , and with US equities making a strong topside push back towards the highs, the US Dollar is grasping at support on a key area of the chart. We looked into this area yesterday as the USD had intersected with the 200 Day Moving Average at a key Fibonacci level on Friday of last week. Thus far, that area around 96.50 has helped to hold the lows in the Greenback after an aggressive push from bears last week. The big question is whether this support can hold – and for FX traders there are a number of setups of interest for either scenario.
Crude Oil was trading on a bullish trend since the beginning of this year after OPEC+ decided to curb the output. But the trend started reversing towards the end of April as the global trade war escalated again and the sentiment in financial markets turned negative. Besides that, the global economy started to weaken again after bouncing for a small period at the start of this year.
What’s up, fellas.The Australian Dollar collapsed the other day against its peer currencies after a surprise and steep fall in the value of Chinese goods imports, which ultimately stoked concerns for the health of the world’s second-largest economy and putting the Aussie under pressure again.
EUR/CHF was pretty trendy during May. The CHF kept climbing higher as the sentiment kept deteriorating in financial markets due to the escalating trade conflict, which helps safe haves such as GOLD , the JPY and the CHF. As a result, EUR/CHF lost more than 300 pips last month and this pair fell close to 1.11 which is a red flag for the Swiss National Bank SNB.