Hi everybody and welcome back! As expected, majors corrected during Asia, yet at this point, market is exactly where i left if 8 hours ago, except for Gbp, that recovered the upside and reached the 1.6410 zone. We have reports in the U.K. in an hour or so, so, let’s wait for them before taking any strong decision there. Gold not only break the 1043 level yesterday, but already completed a pullback to that zone suggesting more downside to come. Stocks and U.S. futures remain extremely quiet, probably waiting for more clues coming from fundamentals today. Not quite confirmed, but today’s close could change that, yesterday movement suggest dollar had finally bottomed against major rivals.
If greenback continues rising today, euro could start a nasty come back; also, despite the slump in stocks, Japanese yen failed to rise. That’s because U.S. long-term yields, treasuries, are rising on speculation that the FED is ready to turn to hawkish; and with ECB members making some verbal intervention as the single currency’s strength starts to damage euro-zone recovery prospects, (and Canada, and New Zealand, and U.K., and all we have been discussing in the past two months), no doubts greenback has some strong chances to start at least a big corrective movement. Let’s see how the data come out today and tomorrow, and market reaction to it! Here is the link for today’s calendar:
http://www.fxstreet.com/fundamental/economic-calendar/
Have a great day!