G-7 Summit weighs on Market sentiment.

By Kenneth@Xtrade - on June 8, 2018

  • With the G7 summit set for today and Saturday in Charlevoix Quebec uncertainties are abound, triggering risk-off mode coupled with Friday’s profit-taking.
  • The US Yields dropped pulling with it the USD from 3-week highs.
  • Meanwhile, Asia shares shrugged on the ECB’s possible decision to cut back it Quantitative Ease policy of Assets purchasing and trade war uncertainties. EU Shares are taking notes from Asia, thus pinned down Germany 30, Italy 40, France 40 and UK’s 100 are all in the negative.
  • EUR has been on the rise since Wednesday and likely to maintain that position into the weekend unless ECB member Yves Mersch triggers a selloff in her speech during the day. The EUR/USD has been trending between 1.1771 – 1.1810.
  • Commodities are down. WTI crude oil dipped after reaching 66.19 as demand in China shrunk while the US continues to ramp up production ahead of today’s Baker Hughes Rig Count. Crude oil was seen trending between 65.45 – 66.19
  • Gold lost its luster shedding 0.21% to 1300 at 07:38 GMT. However, has been swinging between 1,297.40 – 1,303.90 since late Tuesday.
  • The British Foreign secretary Boris Johnson warns of a possible Brexit meltdown before things get better GBP is likely to gain more traction today. EUR is sensitive today however market participants think the short dips are due to profit taking, with upside is expected due to market fundamentals.
  • The JPY is acting as semi-safe heaven as the JPY was not so attractive for investors after GDP reports disappointed market expectations.
  • Cryptocurrencies are also down.
  • A Very volatile Friday seen with perhaps some fireworks coming out of the G7 meetings.

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