Today's Important Indicators
Global risk returned to the markets yesterday, a completely different narrative than the one we'd seen until that point this week, following an attempt in Italy to form a coalition government. Euro pared weekly losses reflecting the shift in investor sentiment while Euro-wide data supported Euro longs. Data in the US disappointed, taking the currency lower. Participants will focus on the European CPI, Canada’s GDP and of course, EIA’s report on weekly stocks.
MARKET MOVERS
EUR/USD – Euro appreciates towards weekly open as Italian parties hold talks to form a coalition. Euro-Dollar closed at $1.1660 in the Wednesday session following Italy’s attempt to form a coalition government. The pair rose by nearly 130 pips, reflecting investor sentiment, in a move widely supported by German and Spanish eco data. Eyes on inflation figures today.
EUR/USD 1-HOUR CHART
GBP/USD – British Pound posts gains versus Dollar but price remains below $1.33 hurdle. Cable closed a tad higher on Wednesday following a return on risky assets as investors started dumping the US Dollar on poor eco data. The pair seems troubled to break back above the $1.33 hurdle while the British economy slows down.
GBP/USD 1-HOUR CHART
USD/JPY – Shift in risky assets weakens Yen while Italian concerns ease, Dollar weak. Dollar was somewhat stronger than Yen yesterday despite the poor ADP and GDP figures reported in the US as safe-haven Yen was dumped for riskier assets like the Euro and Oil following the developments in Italy. Pirce was glued around 38.2% Fibo following the 50% rejection and may remain below 109 ahead of tomorrow’s NFP.
USD/JPY DAILY CHART
USOIL – Oil higher despite the bad API as risk returns in markets, BoC likely to hike in the 2nd half. Oil reached a daily high of $68/b in the Wednesday session as risk associated with the political turmoil in Italy increased longs in risky assets. In addition, oil price was supported by a widely stronger Loonie as BoC paved the way for more hikes this year due to inflation pressures. Despite API submitting a report showing a build in stocks, black gold traders bought the commodity in reflection to a stronger Loonie. EIA in focus.
CRUDE OIL 1-HOUR CHART
XAU/USD – Gold receives Italian bearish signal but Trump’s tariffs and a weaker USD hold price firm. President Trump’s announcement of the plan to impose $50 billion tariffs on Chinese imports helped Gold price to remain positive. Despite Italian risk subsiding, long positions were attached mainly to Yen, instead of Gold, with the yellow metal surviving the pressure as Dollar weakened on poor eco data. Price closed marginally above $1300, currently trading on a positive footing.
XAUUSD DAILY CHART
US Indexes – DJ and S&P 500 climbed 1.56% and 1.27% higher, respectively.
European Indexes – DE 30 rose by 0.26%, UK 100 appreciated by 0.30%.
Asian Indexes - ASX 200 jumped 0.47% higher, Nikkei 225 improved by 0.40%, Hang Seng trades 1.15% higher.
US Equities – Exxon Mobil surged 3.93% up, Tesla saw a 2.81% rise.
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