- Overnight US Equities and USD/JPY reversed some of the year’s biggest sell offs. With Trumps infrastructure spending, tax cuts and red tape reduction at risk market volatility has picked up. Last news out of trump says he “did not ask FBI director Comey to end Flynn investigation”. Likely this news will linger over the weekend.
- A video of Comey saying he wasn’t pressured to end an investigation circulated last night. However, the question specifically asked if someone at the Department of Justice or the Attorney General had ever asked him to halt an investigation – not Donald Trump. Potentially provided some false reasons for market reversals.
- Two potential scenarios playing out in USD/JPY, Gold and S&P500 & DOW. In the event of Trump impeachment gaining momentum a continued risk off move will be sharp. If concerns over Trumps leadership fade, a grinding risk on move as markets reverse likely to unfold.
- EUR/USD has pulled back after its 320 pip rally this week. The fundamentals are still in play for a move higher however this natural pullback from profit taking and value shorting expected. Support at 1.1050 and 1.100 (the 38% & 50% Fibonacci retracement levels) likely to present fresh buying opportunities.
- Overnight Draghi’s speech to Tel Aviv University noted the crisis was behind the Eurozone, and that the recovery is resilient and increasingly more broad-based.
- Oil stops have been hit this morning at $49.90 level, having a small pop higher to $50.07 trading 4-week highs as the market is clearly pleased with recent production cut extensions.
- Aussie Dollar a tough trade. Overall the trend is lower, however small, choppy moves making trading conditions difficult. Sharper, directional moves being experienced in global markets providing traders with better opportunities for profit.
Today’s Economic calendar (AEST)
- 10:30pm US Core Durable Goods Orders
- 10:30pm US Prelim GDP
