Fundamentals and Sentiment
A more settled day today with the Vix at 21/22 and moving in a pretty tight range. Commodities are flat except WTI and Brent crude which have a second up day. As per yesterday, Asian markets are all red but with no real drama – the Chinese indices are down but by less than 1%. The JPY index shows weakness as safe haven money flows out and the commodity currencies of CAD, NZD and AUD react predictably by rising. Risk appetite is very much ON.
Australian CPI comes in above target and US oil inventories rocket to levels not seen since the 1930s. US and NZ rate decisions awaited tonight.
Critical Trades for this week
USDJPY – moves into profit on safe haven outflow.
USDCAD – moves further into loss as oil rises. The decision to take the bigger stop is looking sensible.
EURUSD – still watching to see if narrow channel forming, exit of which would give a sell signal.
- UK GDP
- US Unemployment