Dec 17


  • BY:
  • December, 17th, 2015 20:34 +00:00

Good evening,

profit taking today on US indices after three consecutive positive sessions, with the S&P500 down 18.99 points at 2,054.18 (-0.91%).  Yesterday optimism decreased because investors wanted to monetize their gains and also money market rates soared, making borrowing for banks and both the private and corporate sector more expensive.

EurUsd is losing 100 pips at 1.0809 (-0.93%) and UsdJpy is near its multiyear top, with the rate trading at 122.85 (+0.53%). Commodities are retracing, and Crude Oil is losing 57 cents at 36.18 $/barrel (-1.55%) and Gold is testing its 2015 low  and is losing 26.7$ at 1,050.1 $/oz (-2.48%).

The strong reaction of the US dollar triggered more weakness on commodities because they lost their appeal as hedge tool.  The EurUsd dollar long term trend is bearish but the intermediate is quite neutral, and the probability to have a trading range environment is relevant until the rate will trade above 1.0450.

At 03:00 GMT the Bank of Japan will decide the interest rate level and will release the Monetary Policy statement, and at 05:00 GMT  the BOJ will hold a press conference, thus the Japanese Yen will increase its volatility during those important events. Tomorrow the most relevant event during the US session will be the Canadian CPI that will be released at 13:30 GMT

(20:20 GMT)