Markets Awaiting Fresh Catalysts

Orbex Market Flash

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USD Recovering

The US dollar has been a little higher so far today. The USD index is trading 97.74 last, recovering off the lows of the week. The key data focus this week is the release of the FOMC meeting minutes tomorrow which is likely to add further support for USD.

At the meeting, the Fed signaled that it will be holding off from any further rate adjustments in the near term and data strength since then has seen US rate cut expectations dwindling further.

EUR Heads Lower

EURUSD has been a little lower today on the back of the recovery in USD. With no domestic US data scheduled today, flows are likely to be light while traders await the ECB meeting minutes on Thursday as well as a speech from new ECB president Christina Lagarde. EURUSD trades 1.1066 last, still above the 1.1024 level for now.

Brexit Hopes Boost GBP

GBPUSD continues to trade in the green today as a fresh wave of Brexit optimism has lifted the mood. The Conservative party has announced that all of its members standing in the December elections will now support the PM’s deal.

As a result, the market perceives a greater likelihood of a Brexit deal given that the Conservative party are currently leading in the polls. GBPUSD trades 1.2946 last, still capped by the 1.3019 level resistance for now.

SPX500 Hits New Highs

Risk assets continue to trade higher today, despite some uncertainty over the health of US-China trade talks. Traders are still waiting for a signing date following the canceling of the APEC meeting in Chile which was to be the venue for the signing of the deal. SPX500 trades 3129.93 last as price continues to break out to fresh, all-time highs.

JPY & Gold Down Against USD

Safe havens have been weaker today as a result of the move higher in equities which has left both JPY and gold lower against USD. USDJPY trades 108.77 last, trading back up towards the 108.84 level which continues to be a key pivot. XAUUSD trades 1467.46 last, still holding below the 1481.93 level resistance for now.

Oil Heads Lower

Oil prices have come back under pressure today, extending yesterday’s losses. Despite better risk appetite which is seeing equities boosted, oil remains hampered by the demand outlook. Later today, traders will get the API inventories report for a first look at inventory levels ahead of tomorrow’s headline EIA report. Crude trades 56.62 last, back under the 57 level again.

Loonie Sitting on Support

USDCAD has been a little weaker today, despite a stronger USD and weaker oil prices. Price is tracking against the 1.3207 level for now. Canadian CPI tomorrow is the main domestic data focus of the week followed by BOC Governor Poloz who is due to speak on Thursday and retail sales on Friday.

AUD Rallying

AUDUSD has seen a strong start to the day with price rallying firmly. Better risk appetite is keeping AUD supported here with price trading .6804 last, roughly in the middle of the .6769-.6850 range. The ongoing US-China trade talks remain a key driver for the Aussie, with traders continuing to display optimism for now.

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