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Sentiment has been propped back up a bit into Tuesday, with tension around the latest global trade escalation simmering, at least for the moment. Meanwhile, reports out of China talking more backstops to support the equity market, and another liquidity injection, have also helped to ease investor nerves. read report
We come into the new week with risk off screaming out on the back of renewed tension around the outlook for global trade. President Trump’s expressed displeasure with US-China trade negotiations and his accompanying warnings, have fueled a round of risk liquidation, with US equity futures plummeting in the opening hours. read report
Lack of volatility continues to be a theme in markets, and as we head into the weekly close, we’re staring at a currency market with all of the actively traded pairs confined to within 1% of weekly opening levels. Friday, the focus will be on the US jobs report, US ISM non-manufacturing, US trade data, and a round of Fed speak. read report
The Dollar was mostly sold across the board on the week heading into the Fed decision, though the Buck is back to making another run in the aftermath of the event risk. There were no material changes to the Fed outlook, with the central bank leaving rates on hold as widely expected. Bank of England decision ahead. read report
Most of Asia and Europe are out for holidays and we’re looking at thinner conditions out there, with no major activity expected until the late day event risk in the form of the Fed decision. US equity futures have extended their record run, helped along by an Apple earnings beat, with the S&P 500 approaching a massive psychological barrier at 3000. read report
Softer PMI data out of China has soured investor sentiment early Tuesday, with the fallout weighing on risk correlated FX. Volumes have been thinner this week on account of the extended Japanese golden week, and tomorrow, Europe will be heading out for holiday as well. Plenty of data due today in Europe and North America. read report
Trading conditions are thinner than normal as the week kicks off, with Japan closed for extended Golden Week holidays. The US Dollar has come back under some pressure after extending its 2019 against the Euro and Yen in the previous week. read report
The inevitability of less accommodative, less friendly central bank and government policy, will be felt more acutely in 2019, resulting in the onset of an overdue period of sustained correction in the global equity market, as investors liquidate long exposure, forced to seek out a healthier, more balanced strategy of portfolio diversification. read report
The US Dollar is trying to reestablish itself into the end of the week, with the Buck getting a nice boost from Thursday’s stronger than expected US retail sales reading. Of course, Thursday’s discouraging European manufacturing prints haven’t hurt the Dollar either. Trading conditions will be thin on Friday due to the holiday weekend. read report
Risk sentiment has waned a bit into the latter half of the week, as evidenced by the latest minor pullback in US equities. Still, there has been plenty of optimism this week around a solid bout of China data, a report out of the Wall Street Journal that a US-China trade deal might be confirmed in May, and the news of fiscal stimulus out of Berlin. read report
