Almost unprecedented volatility remains in the stock markets: DJI’s 6% growth following Tuesday’s results alternates with a 5.5% failure at the start of trading on Wednesday. FTSE100 lost 4.1%, Dax – 4.9%.
The Fed is stepping up its support for credit markets in an attempt to avoid an abnormal craving for dollars. Despite this, DXY has been adding 1.6% for a second day to the March 2017 highs. Commodity currencies are undergoing a real devaluation against the dollar (see table). GBPUSD entered the freefall, losing 2.5% and trading at 1.1740 – the lows since 1985.
Gold today swung between $1485 and $1545. This is an abnormally wide range, but it is shrinking for the third day in a row.
Brent in the spot market fell below $ 27, the lowest since 2003, almost half price from March 3.
Despite large-scale stabilization measures, dollar thrust prevails in the markets – as it become the equivalent of cash for financial markets.
Important events, GMT (Exp.):
03:30 Au !!! Monetary Policy Announcement
05:00 Au !!! RBA Governor Lowe Speaks
08:30 Sw !!! SNB Policy Assessment
12:30 US !! Philly Fed Manufacturing, Mar (10.2)