Market Summary
Risk appetite remained healthy as Asian markets kicked off the new week, with gains being seen all across the region. One likely reason is the soft inflation data that was reported on Friday in the U.S., which gave Asian investors hope that a flight of capital from Asia would be delayed. Also helping equities were firmer metals prices, and a weaker Yen.
European markets were mostly higher Monday, although losses in Spain weighed on the broadest measures of European equities. Germany’s DAX closed above 13,000 for the first time ever, but London’s FTSE edged lower despite weakness from the Pound and strength from mining stocks.
Markets in the U.S. ended the day at new record levels as investors remain bullish over the emerging earnings season. Profits are expected to be good enough to justify current record equity levels, giving investors reason to continue buying.
Today’s Assets
Ripple
The cryptocurrency had a wild ride on Monday, rising nearly to the $0.30 level before reversing and falling nearly to the $0.25 level late in the session. There was no known catalyst for the drop, which could simply be profit taking, or related to the move towards Bitcoin ahead of the hard fork. The $0.25 level is support however, so price should either bounce, or if it breaks support begin heading towards the next support level at $0.20.
USD/CAD
While the pair rose on USD strength Monday, we expect a pullback and drop in the pair as crude prices have hit a three week high on Monday. More importantly, long interest in the Canadian dollar is at a five year high, and this momentum could build rapidly later in the week when Canada releases manufacturing, retail sales, and inflation data.