Nov 24


  • BY:
  • November, 24th, 2015 19:51 +00:00

Good evening,

US indices did not start well today but both DJIA and S&P500 as well now are in positive territory with the former at 17,812 (+0.11%) and the latter at 2,087.58 (+0.05%).

Geopolitical tensions weighted more than OPEC efforts to lift Crude Oil near to producers breakeven price: the commodity is rising 92 cents at 42.67 $/barrel (+2.20%). Gold is up 8.1$ at 1,074.9 $/oz (+0.76%) but today price activity seems a pullback thus is premature to think that in the short term market sentiment could be bullish.

In the FX market the Euro confirmed again that is the currency for carry trades. During price spike in the European session EusUsd rose and even now is off its intraday high the rate is up 19 pips at 1.0654 (+0.17%). UsdJpy is losing 45 pips at 122.38 (-0.36%).  The weakness of the British Pound, considering that BOE Carney  will not risk to make a rate hike in a situation where the UK economy is at risk of a slowdown, is bringing down GbpUsd, that is trading at 1.5088 (-0.23%), down 34 pips, and as a consequence of the combined weakness of the US dollar VS. the Euro and the drop of GbpUsd, EurGbp is gaining 29 pips at 0.7060 (+0.41%), rebounding on the important technical support at 0.7. Positive risk appetite on oceanic currencies, and the Swiss Franc continues its short term positive trend  but a reversal may happen soon.

US GDP was slightly above the consensus but Consumer Confidence data at 90.4 was below the expectations (99.5).  At 23:50 GMT will be released the Bank of Japan Monetary Policy Meeting Minutes, and UsdJpy is only 80 pips above its 200SMA, thus a test of this level seems likely in the short term. Tomorrow at 13:30 GMT will be released US Durable Orders (Consensus at +1.5% vs. -1.2% previous) and this data likely will have an important role for the direction of risky assets during the both European and US session.

(19:35 GMT)