Feb 23


  • BY: Donal Kelly
  • February, 23rd, 2016 18:43 +00:00

Good evening,

global indices lost ground today and in Germany the DAX lost 156.82 points at 9,416.77 (-1.64%). In UK the FTSE100 closed at 5,962.31 (-1.25%), down 75.42 points.  In US the DJIA is losing 166.31 points at 16,454.35 (-1%).

Another depreciation of the Chinese currency allowed by the PBOC, was one of the main catalyst of risk reversal trades. Crude Oil found resistance against its 55EMA and then started to retrace when KSA Oil Minister Ali al- Naimi  said that KSA will not cut  Crude output. The commodity is trading at 31.82 $/barrel (-4.70%). The winner of this session is Gold: the shiny metal is gaining 13.2$ at 1,223.3 (+1.09%). US Consumer Confidence figures were at 7 month low.

In the FX market the British Pound is losing again as the currency may keep its volatility high while the financial community is evaluating the consequences of Brexit.  EurGbp is trading at 0.7869 (+0.84%) and 0.8 may be reached soon. EurUsd is flat at 1.1027 and the Japanese Yen is gaining against most of major group of currencies. The Swiss Franc also is rising as SNB Jordan suggested limit to negative rates.

Tomorrow in US will be released Mortgage Applications at 13:00 GMT and New Home Sales data at 16:00 GMT. At 16:30 GMT will be the turn of DOE Crude Oil Inventories.

(18:40 GMT)