Jan 11


  • BY: Donal Kelly
  • January, 11th, 2016 21:12 +00:00

Good evening,

US indices are in positive territory in a session where trading range prevailed over momentum. The DJIA is up 78,11 points at 16,424.56 (+0.48%) and the S&P500 is gaining 4.88 points at 1,926.21 (+0.25%).  If equities did not follow the Chinese market performance (-5%), Crude Oil is more sensitive to the current global macro situation, where many portfolio managers have as a target price for Crude Oil 20$/barrel. The commodity is trading at 32.09 (-5.49%) and broke the multiyear price level that was traded during the financial crisis.

In the FX market EurUsd is trading at 1.0851 (-0.63%), and GbpUsd is up 29 pips at 1.4545. UsdJpy is up 52 pips at 117.72. Today was difficult to set up any intermediate time frame trading strategy because there were more noise than signals. The US dollar should continue to rise if EurUsd stays below 1.12.  Gold slid below 1,100 but only below 1,050 the shiny metal may have another bearish wave. Risk appetite reversal is helping the performance of Gold this year but global deleveraging triggered by paninc selling in equities and energy commodities may reduce the correlation of the shiny metal with the volatility index.

During the Asian session (time n/a) will  be released the Chinese New Loan data and tomorrow morning at 10:30 GMT BOJ Kuroda will hold a speech. At 15:00 GMT the UK NIESR GDP Estimate.

(20:50 GMT)