Solid risk-off sentiment continues to dominate the markets, with the US dollar continuing to advance against the yen and European currencies, while most stock markets are trading lower yesterday, although a small recovery is seen during the Asian session.
➡️ Risk appetite continues to be low, with stock markets trading lower almost everywhere yesterday. However, today's Asian session saw some small recoveries. The NASDAQ 100 Index appears to have made a technical break below the previous key support at 14657, while both this index and the S&P 500 index they reached new 3-month low prices yesterday.
➡️ In the Forex market, the US dollar remains the strongest major currency, with the USD/JPY currency pair in the spotlight as it hit a new 11-month high of ¥149.18 yesterday with the Bank of Japan openly threatening to intervene but failing to take any concrete action. The US dollar also once again reached new long-term highs against the European currencies EUR, GBP and CHF with a very clear directional trend. Trend traders in the Forex market will be more interested in being Long USD/JPY and Short on EUR/USD as these are the two major dollar pairs that historically tend to trend most reliably.
➡️ Many commodities are trading lower in the current risk-off environment, with They and silver falling yesterday. However, the price of the crude oil is rising steadily, threatening to regain the multi-month high reached a few days ago above $92.60. Some soft commodities are mostly holding value, but none are reaching new highs.
➡️ Yesterday's release of US CB consumer confidence data was slightly weaker than expected.
➡️ Australian CPI (inflation) data came in as expected at 5.2%, up slightly from last month's annualized rate.
➡️ The ECB's Holzmann said he was not sure whether the terminal rate had yet been reached, offering the prospect of further rate hikes beyond the current rate of 4.50%.
➡️ There is no major data expected today, so it could be a relatively quiet day in the markets, although the recent solid risk-off sentiment could continue to carry current trends forward.
Credit by DailyForex.com