European stocks are trading higher on Tuesday as news that China will step up its defense of the Yuan stabilized financial markets. Further positive car makers data helped Eurozone markets, with Germany’s DAX in particular, which saw it climb more than 2% recovering some of its 2016 losses to date.
GBPUSD’s misery continued this morning, as manufacturing data from UK came in very poor compared to forecast resulting in the pair again posting a fresh 4.5 year low, at one point reaching 1.4413.
Confidence appears fragile as weak commodity prices remain a key point of focus. Commodity prices remain under pressure, with Brent and WTI slipping -3.2% and -4% respectively. Oil prices dipped below their $30 resistance level as crude oil inventory data released by American Petroleum Institute (API) fell short of market expectations. Further downside is expected as the EIA cuts its global oil demand forecast from 95.22 to 95.19 million barrels a day while increasing global production forecasts by 0.14 million barrels a day.
Following mild risk appetite, Gold has lost some of its shine as it slipped back to 1086 at time of writing as investors shift focus to riskier assets, albeit temporarily at least.
Trading quote of the day: “Losing money is the least of my troubles. A loss never troubles me after I take it. I forget it overnight. But being wrong – not taking the loss – that is what does the damage to the pocket book and to the soul.” – Jesse Livermore, Reminiscences Of A Stock Operator
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