Italian Political Turmoil drives the Market.

By Kenneth@Xtrade - on May 29, 2018

The EUR was unable to crawl up significantly yesterday before the announcement of Italy’s new Prime Minister, the former IMF Director Carlo Cottarelli. The EUR’ plummeted below  6-1/2 month lows, now testing 1.15 support handle. Further downside movement is expected.EUR/USD was ranging between 1.1587- 1.1639 at the time of print 07:27GMT

The USD also lost some steam but remains relatively high as investors look out for the upcoming Fed rate hike. The Dollar Index/DXY trending between 94.28 – 94.70.

Some Market participants jumped ship in risk aversion, The JPY was the currency of choice as the usual Safe heaven rallied.

Asian shares were down trotting. EU Shares also traversed on a losing streak.

Germany 30 /DAX30, UK’s FTSE, France’s CAC40 and European Stoxx 600 was down some 1.3%, while Italian bond selloff like its doomsday. Asain shares shared the same weak sentiment. However with the US-North Korean summit back on the table support is Asian shares are expected.

Commodities were also driven down Gold, Silver, Oil remains bearish while Aluminum, Nickel, were Bullish.

Oil lost -1.7% by 09:27GMT ranging between 66.44 – 67.21. further downside is anticipated with the release of the API American Petroleum Institute’s weekly oil stock which is expected to report increase stockpiles on Wednesday.  Russian- Saudi collaboration to end the production limitation on OPEC members while filling up any vacuum left by Iran and Venezuela sanctions sent Oil prices nose diving.

The Russian Ruble and oil giants in Russia like Rosneft felt an abrupt selloff deepening the gap between the USD/RUB

Cryptocurrencies linger hopelessly down although some analysts predict a strong comeback as the Blockchain technology becomes more and more attractive for the establishment.

With the US & UK back from their Memorial and Spring Day celebrations increased volatility is expected.

 

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