Posted on: 08 March 2016, by: Pepperstone Support, category: Market Review
FX largely awaited major events this week on Monday, while the broader market continued to focus on China and potential implications of its additional stimulus efforts.
Speaking to the latter, oil has followed the strong performance seen of iron ore in early Asia. Brent recovered $40 per barrel for the first time in 2016, while WTI surged from the $36.10 area at the NY open to highs just above $38. Gold has consolidated in the mid $1260s.
USDJPY now tests 113.40 and EURUSD, 1.1015. USDCAD has broken a support level 1.3298 (200d MA) and USDMXN has traded as low as 18.70. AUDUSD quickly approaches 0.7400. US 2Y and 10Y treasuries finished up strongly, up 4.4 and 2.8 bps respectively. S&P’s and the Dow finished up smalls after giving up broader gains into the NY close.
While there are no CB meetings on Tuesday, the day brings a heavy event calendar. This includes trade data from both Japan and china; speeches from BoE members, including Carney; and Eurozone growth indicators.