Some risk off sentiment can be seen in the markets today with oil and stock markets dropping lower. With fresh yearly highs in Brent and the US500 already this week it could be a case of some long positions profit taking with several major economic events in the coming weeks. Brent Oil (-1.65%) is back below the 52 handle despite some weakness in the US dollar and is on course to print a bearish engulfing candle stick on a daily time frame.
The US500 (-0.44%) is still holding up relatively well compared to its European counterparts with the Dax (-1.50%) retreating quickly back towards the 10000 level. The FTSE (-1.06%) is also experiencing a day of fairly strong selling and has dropped just over 60 points so far.
In terms of economic releases today there wasn’t too much by the way of major news with the US initial jobless claims the standout. The weekly unemployment indicator dropped down to 264k from 269k expected, but didn’t have a tangible effect on the markets. The Canadian national house price index rose by 0.3% for the most recent month, inline with expectations and slightly above the previous print.
The New Zealand dollar has continued higher after gaining on the RBNZ decision to stand pat last night with the NZDUSD ( 0.63%). The buck is showing some strength with both the EURUSD (-0.68%) and GBPUSD (-0.36%) dropping lower with the former trading at 1.1320 at the time of writing.
Looking ahead it’s relatively quiet overnight during the Asian session with tomorrow’s main events coming in the afternoon. Canadian employment data at 13:30 will be keenly watched by CAD traders before the preliminary University of Michigan consumer sentiment rounds up the week at 15:00.
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