- A reported terrorist attack at a concert in Manchester UK has killed 19 and caused some flight to safety moves in late US/early Asian session this morning. This has strengthened the Yen seeing USD/JPY reverse yesterday’s gains, currently sitting at the 111.00 handle.
- Gold also receiving a bounce, up $10 since Mondays open the precious metal is testing last weeks high of $1,265. Having broken the $1,257 twice in recent days, traders eyeing the $1,270 resistance level. Continued dollar weakness and lingering concerns over Trumps impeachment still supporting prices.
- S&P500 (+0.52%) and DOW (+0.43%) brushing off Trump concerns as he tours the Middle East promoting peace & the war on terror, while also signing a $350billion arms deal with the Saudi’s. A convincing break of 2,393 in the S&P500 will likely see fresh record highs reached this week. Some selling this morning after UK terrorist attacks.
- Longs wanting to get positioned in the EUR/USD have had just two 60-100pip pullbacks to get set – strength looks to continue. However, after a 400pip rally over 7 trading sessions, the long into Junes ECB meeting is potentially nearing the end – short term shorts to be considered around the 1.1330 level – representing a 480 pip rally since 12 May, and a 9.5% gain since January. Heavier resistance, should the market reach it, around the 1.1450 level. A more hawkish ECB however could see a break of this level providing a good opportunity to join a short-term rally/short squeeze around the meeting.
- Greek finance minister Tsakalotos stating this morning that Greece will definitely get bailout tranche in June, and that an agreement will be reached in 3 weeks.
- Oil trading highs from 20-April as traders eye this Thursdays biannual OPEC.
Today’s Economic calendar (AEST)
- 6:00pm German Ifo Bus Climate
- 7:00pm UK Inflation Report Hearing
