- Gold rallied overnight due to continued geopolitical tensions. The precious metal is up 10% this year, currently trading above Fridays Syria spike at $1,274.8
- The volatility index once again rallied to January 3 highs of 16.4. Traders expecting a pick-up in global currency, commodity and equity indices volatility over coming weeks.
- US Crude Oil jumped to 1 month highs of $53.74 on talk of OPEC quota extension at request of Saudi Arabia. Private inventory data shows larger than expected draw in inventory.
- US Treasury Yields dropped below the key 2.30% support level. In conjunction with geopolitical risks, this saw USD/JPY break through the 110.00 support level, trading as low as 109.535, as the safe haven Japanese Yen trade added to the selloff.
- President Trump says he told China’s President that a deal with the US would be “far better for them if they solve the North Korea problem”
- North Korean state media warned on Tuesday of a nuclear attack on the United States at any sign of American aggression – Trump has sent an ‘armada’ of subs and aircraft carrier to the Korean peninsula.
- Equities are holding up. The S&P500 is less than 2% off its March record highs, and is still 13% up from its early-November lows. The Euro Stoxx 50 is up more than 17% over the same time.
- Busy upcoming 24 hours, with UK, Canada and Australia major economic announcements being released.
Today’s Economic calendar (AEST)
- 10:30am Westpac Consumer Sentiment
- 11:30am China CPI & PPI
- 6:00pm BOE Gov Carney Speaks
- 6:30pm UK Ave Earnings
- 12:00am Bank of Canada Rates/Statement
- 12:30am Crude Oil Inventories
- 1:15am BOC Press Conference
