EURUSD lost altitude overnight and posted 2 week lows after ECB minutes revealed possible easing measures in March. EURUSD touched a low of 1.1076, retracing to the 1.110 level. On the other hand, GBPUSD approached 1.44 levels as market hopes for a deal between the EU Council and Cameron so as to avoid a possible exit of Britain from the EU.
Oil gains from supply freeze negotiations earlier this week are retracing after the EIA reported inventories rose 2.1 million barrels, continuing supply glut concerns. This comes amid comments from the Saudi Foreign Minister Adel Al Jubeir stating “..Saudi Arabia is not prepared to cut production”. Analysts are expecting further downside until commitment is seen from OPEC and non-OPEC members.
Despite the recent risk-on sentiment, GOLD is up $23 to 1231 with the largest gain in a week. Prices of the yellow metal soared to a one-year high of $1,263.90 last Thursday, boosted by a flight to safety. Gold is up nearly 14% so far this year amid indications global economic and financial headwinds could make it tough for the Federal Reserve to raise interest rates as much as it would like this year.
US equity markets struggled to post a fourth straight day of gains. The S&P500 closed down 0.47% while the NASDAQ took a 1.13% hit. European equity performance was mixed overnight with the DAX up 0.92% driven by strong profit reports, while the FTSE closed 0.97% in the red.
Focus now shifts to US CPI to be released tomorrow.
Please note: Try our new trading platform www.easymarkets.com and login with your same username and password you use at easy-forex. Experience a better user interface with news, Technical Analysis and charts – all in one page
Important note: These technical and research reports are provided to easyMarkets® as a subscriber of third party providers. They are provided for informative purposes only and in no way can they be considered as a recommendation by easyMarkets® to you to engage in any trade. Hence, easyMarkets® shall not be held responsible for any outcome of trading decisions, in regards with these reports or similar reports. You hereby acknowledge that using the information entailed in these reports is at your sole responsibility and you will have no claims with regards to these reports against easyMarkets®. If you do not agree to this, you are strongly advised not to use these reports.
easyMarkets Pty Ltd (AFSL 246566 ABN 73107184510) makes no recommendations as to the merits of any financial product referred to in this website, emails or its related websites and the information contained does not take into account your personal objectives, financial situation and needs. easyMarkets recommends that you read the Regulation Page, The Product Disclosure Statement, the Terms and Conditions and the Financial Services Guide before making any decision concerning easyMarkets’ products.