The dollar is hovering around seven-month lows. Oil remains volatile and equities are mostly flat.
Commodities
Oil
Crude oil is stuck at $47.85 after several Arab states cut diplomatic ties with Qatar, arousing uncertainty about OPEC’s recent output cuts.
Crude oil has inched upwards since yesterday; its new resistance is at $48.00 and support lies at $47.50. Momentum is dipping down slightly which could be an indication of some bearish tones coming in later today.
Watch out for crude oil inventories which will be released later today, forecasted to come in at -3.1M. If storages are more than expected, we could see oil take a dive. Stop losses at the ready!
Gold
Gold is down 0.03%, but is tantalisingly close to its highest point since November, thanks to the waning dollar and geopolitical risks.
This precious metal’s momentum is tipping slightly down. However, with Thursday’s UK elections, there could be a stir in the demand for gold.
Forex
USD
Investors doubts over Donald Trump’s ability to deliver on the fiscal stimulus needed to raise interest rates has sagged the dollar. The US dollar is now at post-election lows.
EUR
The euro is stalling ahead of the ECB meeting tomorrow. Investors are concerned that European Central Bank president Mario Draghi will have a dovish outlook for interest rates hence, are not adding to bullish bets, for now.
EURUSD is now at $1.126, looking at $1.122 as a support and $1.13 as a resistance level. The pair may grow towards $1.128 today as momentum is rising coupled with an upward sloping Moving Average.
GBP
The Pound is slightly stronger in the run-up to tomorrow’s general election. Possible bullish tones could be forming as GBPUSD moves towards the resistance level of $1.2950.
JPY
The Japanese yen, investor’s choice when they are feeling risk averse, has strengthened to just below a six-week intraday high of ¥109.20 per dollar.
US Equities
US equities are becoming increasingly reliant on technology stocks to maintain highs. Initial hopes of deregulation and tax reform have become muted under political scandals.
This week has been dubbed as “infrastructure week” by White House officials, however any positive sentiment is likely to be offset by Thursday’s Senate intelligence committee testimony from James Comey.
Therefore, US equities are flat today.
European Equities
A risk-filled Thursday has caused European investors to remain cautious. Watch out for increased volatility as Thursday’s session gets underway.
Despite the flurry of threats in Europe (UK elections and the ECB interest rate decision) equities are inching higher this morning.
Cryptocurrencies
Ethereum
Ethereum is at a record high, now at $262.54! This cryptocurrency keeps smashing records and is showing no signs of slowing down.
Bitcoin
Bitcoin hit another record high yesterday at $2842. Today, the digital asset has fallen back, now at $2732 as it struggles to maintain above the level $2800.