A very busy calendar day with a deluge of reports coming out of the EU and US. The reports are set to cause a fair degree of volatility. Sending assets in and out of gains
- With the Italian political saga weighing global stocks plummeted. Dow Jones was down nearly 480 pips as the big banks like JP Morgan shares tumbled. Germany30/DAX30, France40/CAC 40, Italy40 & FTSE100, are all struggling to come up yet remain bearish.
- EUR was pushed down to almost 9 month lows, the EUR/USD is seen trending in the “Comfort Zone” of 1.1519 – 1.1612 with further downside expected later when the US releases its reports on GDP, PCE/Inflation numbers and the American petroleum institute/API reveals the levels of US weekly oil stocks today instead of the usual Tuesday report due to Monday’s Memorial Day commemoration.
- Oil prices tanked 1.7% ranging between 66.37 – 67.12 due to increased U.S. shale production as well as Saudi and Russian intention to lift the production cap in place by OPEC. Likely this will pressure Oil downwards.
- GBP/USD was spotted adding gains recovering from its recent sell-off as Brexit uncertainties weigh.
- The USD Bond Yields were up, likely an indication that the USD may follow in its footsteps. Ahead of the Automatic Data processing report a prelude to the NFP.
- Market uncertainties cause investors to flee to safe heavens, JPY is a positive benefactor like the Crypto-Currencies which recently has been behaving like the good old CBOE, S&P500 VIX. A fear gauge for market participants.
- Commodities such as Gold, Copper were bearish in their outlook.
- The CAD remains vulnerable awaiting today’s Canadian Interest rate decision.
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