Oct 23


  • BY: Donal Kelly
  • October, 23rd, 2015 20:13 +00:00

Good evening,

The selloff seen yesterday on the Euro continued today after EurUsd broke the medium term bullish trendline generated last March. The rate is losing 100 pips at 1.1009 (-0.9%).  Weakness on Cable as well: GbpUsd tried during the morning session to rise above yesterday low but the pullback triggered another bearish wave and now the rate is losing 81 pips at 1.5311 (-0.53%). UsdJpy is testing its daily 200SMA  at 1212.43 (+0.6%), up 72 pips.

In US the Nasdaq composite at 5,032.07 (+2.28%) is overperforming the S&P500, that is trading at 2,075.39 (+1.11%). Weakness on energy commodities, and Crude is trading at 44.68 $/barrel (-1.54%), but Natural Gas is doing even worse (-4%).  Gold down 1.8% at 1,164.3 $/oz (-0.15%).

The US dollar could gain this quarter because the FED may hike rates on December because it is afraid to lose credibility. In this scenario, with a positive yield curve in US and another round of QE in Europe, EurUsd can reach the parity by the end of this year.  Crude Oil selloff can end the rally on equity indices if tech stocks (Microsoft, Google) will go on profit tacking.