USD underpressure (USDIndex 103.40), Stocks overnight mixed, but up currently into EU open. Yields were sunk by two poor note auctions after an early risk-on bid weighed on the bond market. JGB yields rose on, with the yield curve widening to its highest level since 2015. Oil up at 111.45, Gold steady. US Durrables report & pending home sales surprised on the high side, while the Dallas Fed index plunged. Today’s German consumer confidence not as bad as feared but the headline looks worse than it did during the pandemic and the resulting pressure on consumption will add to recession risks not just in Germany.
- USDIndex down to 103.40, As keen investors headed for safety and the US Dollar was capped, although overall levels don’t look very different to last morning.
- Equities – Nikkei and ASX closed with gains of 0.7% and 0.9%. Wall Street stumbled and lost traction with the USA100 falling -0.72%. The USA500 was down -0.30%, and the USA30 lost -0.20%.
- Yields 10-year was up about 9 bps to test 3.21% but ended at 3.194%.
- Oil extends gains – $111.38. Saudi Arabia and the United Arab Emirates looked unlikely to be able to boost output significantly while political unrest in Libya and Ecuador added to those supply concerns. – both produced at maximum capacity.
- Gold pullback to $1,827.
- FX Markets – EURUSD returns the 1.06 barrier, USDJPY is at 135.68, Cable trades at 1.2290 now, ranging since Friday.
Today – Focus is on ECB President Lagarde at the ECB Forum on Central Banking in Sintra, Portugal and US Consumer Confidence later on.
Biggest FX Mover @ (06:30 GMT) AUDJPY (+0.69%). Broke 3-day’s peak and trades above 94.00. MAs aligning higher, MACD lines are positive configurated, RSI 67 but flattened. H1 ATR 0.214Daily ATR 1.507.
Click here to access our Economic Calendar
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.