Several global stock market indices have made unusually strong downwards moves over the past day, notably in Asia.
- Stock markets have made unusually strong bearish corrections over the past day, led lower by key Asian markets, although major US indices also sold off sharply yesterday. The Nikkei 225 Index stands out as it closed more than 4% lower on the day, which is an unusually strong move. Some major indices have been trading near their all-time high prices, but this is a bearish sign that a deeper correction in stock markets may be underway.
- In the Forex market, the Japanese Yen has again been the strongest major currency since today’s Tokyo open, while Australian Dollar has again been the weakest, putting the AUD/JPY currency cross in focus. The EUR/USD currency pair remains in focus as trend traders will still be interested in being long of this currency pair above $1.1035. The USD/JPY currency pair is also in a valid long-term bearish trend, with many analysts having faith that the Yen will strengthen further over the coming months as the Bank of Japan continues to move away from its old ultra-loose monetary policy. The USD/JPY pair has begun to fall firmly again, and during today’s Tokyo session it traded below ¥145.
- Most commodities fell strongly yesterday. Crude Oil stands out as it fell very strongly over the past day to trade at a new 8-month low price.
- Swiss CPI (inflation) data released yesterday was lower than expected, showing no month-on-month change, when an increase of 0.1% was widely forecasted.
- Australian GDP data released earlier today showed a month-on-month increase of 0.2% as expected.
- US ISM Manufacturing data released yesterday came in a fraction lower than expected.
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