Solid risk-off sentiment continues to dominate markets, with the US Dollar advancing to long-term highs against the JPY, GBP, EUR, CHF, and AUD.
- In the Forex market, the US Dollar remains the strongest major currency as the US Dollar Index powers ahead to reach a new 10-month high after breaking above a former key resistance level. The greenback has just reached long-term highs against almost all the major currencies:
- The USD/JPY currency pair made a new 11-month high yesterday at ¥149.70.
- The AUD/USD currency pair made a new 11-month low yesterday at $0.6331.
- The EUR/USD currency pair made a new 8-month low yesterday at $1.0488.
- The GBP/USD currency pair made a new 6-month low yesterday at $1.2110.
- The USD/CHF currency pair made a new 6-month high yesterday at $0.9225.
The NZD and the CAD are relatively strong and are managing to hold some of their value against the greenback. Trend traders in the Forex market will be most interested in being long USD/JPY and short EUR/USD as these are the two major Dollar pairs which have historically tended to trend most reliably.
- The price of Crude Oil has continued to advance, with WTI just kissing $95 per barrel yesterday. The rally is being boosted by shrinking stockpiles at Cushing.
- Stock markets remain weak, with the Chinese HSI trading today at a new 11-month low. The price action of most major indices is bearish, and several are near long-term low values.
- Most commodities are trading lower in the current risk-off environment, with Gold falling to a new 6-month low well below $1900. However, a few soft commodities are mostly holding value, but none are breaking to new highs.
- There will be releases today of US Final GDP and unemployment claims data, which may impact the USD.
- There will be releases today of German Preliminary CPI and Spanish Flash CPI data, which may impact the USD.