Access both platforms from your single Saxo account.
Wall Street lets the good times rest
Michael O’Neill
FX Trader, Loonieviews.net
Summary: Q2 is just one day old, and Wall Street traders are taking a break. At least that is what this morning’s open suggests.
The three major indices started with small losses, but after three “up” days including yesterday’s impressive gains, the dip is likely due to a bit of profit-taking and therefore short-lived. The Nasdaq was in positive territory by 1415 GMT and the S&P 500 was flat.
US Durable Goods Orders in February were down 1.6%, better than the forecast but worse than January’s 0.1% rise which was revised down from 0.4%. The ex-transportation component also disappointed. However, the data and its minimal impact on markets will quickly be forgotten with traders looking ahead to Friday’s nonfarm payrolls report.
US Durable Goods Orders in February were down 1.6%, better than the forecast but worse than January’s 0.1% rise which was revised down from 0.4%. The ex-transportation component also disappointed. However, the data and its minimal impact on markets will quickly be forgotten with traders looking ahead to Friday’s nonfarm payrolls report.
FX markets have been one big yawn since New York opened. EURUSD drifted in a 1.1196-1.1210 range, and USDJPY held to a 111.28-111.38 band. GBPUSD looked like it was going to get exciting as prices dropped from 1.3066 to 1.3014 but that move died, and prices are unchanged as of 14:00 GMT.
USDCAD is holding its own in the face of sliding Antipodean currencies. AUDUSD and NZDUSD have not recovered from a somewhat dovish Reserve Bank of Australia statement or soft Kiwi data. That is thanks to surging oil prices and a Bank of Canada dove with a bit of a bite.
BoC Governor Stephen Poloz was at his doublespeak best yesterday in a speech in Iqaluit. He said the outlook for the domestic economy continues to warrant rates below the neutral range and said that the “data showed a “mixed picture” which must be carefully monitored. Then he said “there are clear signs that Canada is adjusting to the challenges. After taking into account the economy’s structural adjustment to lower oil prices that is still going on, we can see many areas of encouraging economic growth.”
His dovish comments with a bit of a bite, combined with WTI oil prices flirting with $62.00/barrel led to USDCAD briefly breaking below the 100-day moving average at 1.3320. A decisive break of this level targets 1.3193, the 200-day moving average.
USDCAD is holding its own in the face of sliding Antipodean currencies. AUDUSD and NZDUSD have not recovered from a somewhat dovish Reserve Bank of Australia statement or soft Kiwi data. That is thanks to surging oil prices and a Bank of Canada dove with a bit of a bite.
BoC Governor Stephen Poloz was at his doublespeak best yesterday in a speech in Iqaluit. He said the outlook for the domestic economy continues to warrant rates below the neutral range and said that the “data showed a “mixed picture” which must be carefully monitored. Then he said “there are clear signs that Canada is adjusting to the challenges. After taking into account the economy’s structural adjustment to lower oil prices that is still going on, we can see many areas of encouraging economic growth.”
His dovish comments with a bit of a bite, combined with WTI oil prices flirting with $62.00/barrel led to USDCAD briefly breaking below the 100-day moving average at 1.3320. A decisive break of this level targets 1.3193, the 200-day moving average.
Disclaimer
The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.
Please read our disclaimers:
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
- Full disclaimer (https://www.home.saxo/en-gb/legal/disclaimer/saxo-disclaimer)