Spreadex Market Update
USD Pulls Back As Powell Fails To Deliver
Equities Recover Amidst USD Weakness – Sentiment Remains Weak
Equities prices were able to stabilise yesterday against the backdrop of a softer US Dollar. However, with hawkish central bank expectations still very much in the foreground, risks remain pointed lower and indices are vulnerable to further downside should USD continue higher ahead of or in response to tomorrow’s jobs data. The Nikkei was the best performer again yesterday with the index continuing to breakout to fresh highs on the year. However, we are seeing a little giveback today as caution creeps in ahead of the BOJ meeting to be held overnight.
AUD Leads FX – BOC Hold Rates Unchanged – CHF Remains Firm
A softer start for the US Dollar today has allowed for some rebound across the FX space with AUD leading the way over the early European session on Thursday. CAD has been a little weaker on the back of the March BOC meeting yesterday. The BOC held rates steady at 4.5% in line with falling inflation and said it will move into data dependent mode now, monitoring inflation going forward. CHF remains buoyant on the back of a stronger-than-expected CPI reading earlier in the week which has refocused the market’s hawkish SNB expectations. Speaking earlier this week SNB head Jordan noted that the bank cannot rule out further rate hikes in light of the ongoing inflation picture.
Metals & Crude Weaker Again
In the metals and commodities space, both gold and silver paused in their declines yesterday following heavy selling on Tuesday. On the back of those moves, sentiment remains weak and both metals are vulnerable to fresh downside moving forward particularly around tomorrow’s jobs data. Crude prices continued lower yesterday despite the EIA reporting its first inventories deficit in over 10 weeks. However, the data has been attributed to a further numbers adjustment by the EIA and so has been unable to shift bearish sentiment towards crude currently.
It's easy to open an account
- Fill in our simple online application form
- Fund your account
- Start trading the global markets instantly!
SEARCH FOR AN ARTICLE:
Enter a keyword and search for all relevant articlesMARKET ANALYSIS
RECENT POSTS
DISCLAIMER
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investors lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. For professional clients, spread betting and CFD trading can also result in losses larger than your initial stake or deposit.
Spreadex Ltd is authorised and regulated by the Financial Conduct Authority, provides an execution only service and does not provide advice in any way. Nothing within this update should be deemed to constitute the provision of investment advice, recommendations, any other professional advice in any way, or a record of our trading prices. This update does not constitute or form part of an offer of, or solicitation for a transaction in any financial instrument, nor shall it or the fact of its distribution form the basis of, or be relied on in connection with, any contract therefore. Any persons placing trades based on their interpretation of the comments or information within this update does so entirely at their own risk.
No representation, warranty, or undertaking, express or limited, is given as to the accuracy or completeness of the information or opinions contained within this update by Spreadex Ltd or any of its employees and no liability is accepted by such persons for the accuracy or completeness of any such information or opinions. As such, no reliance may be placed for any purpose on the information and opinions contained within this update.
The information contained within this update is the intellectual property of Spreadex Ltd and is protected by UK and International copyright laws. All rights reserved. Users may however freely download, distribute and reproduce extracts of the contents, subject always to accrediting Spreadex Ltd as the source and providing a hyperlink to www.spreadex.com.
