Wednesdays are not usually the slowest days of the week but today has been a bit of a grind with little in the way of Tier 1 news scheduled into the economic calendar and no crazy headline news to react to.
The New Zealand dollar is still strongest of the currencies with the US dollar coming in strong at the London close. The NZDUSD has held on to most of the day’s range after the impulsive move off the RBNZ announcement during the Asia-Pac session but is unlikely to close above May’s previous range high.
The ActivTrader sentiment indicator remains at the extremes of 86% of traders still bearish the currency pair.
The major indices are bullish today bar the DAX which ended the European session down -0.09%, which is basically flat for such a volatile bourse. US stocks were cautiously higher as investors wait for fresh jobless claims and PCE inflation data due at the end of the week.
Gold, continues to push ever so slightly higher, closing the London session above $1900 and truly back into the January trading range. The year-to-date high is $1959 so at this rate we should be starting June nearer to $2k which will be a boost to the gold miners and metal dealers.
Gold is starting to really benefit from the declining US 10-year yields as their inverse relationship stays true as inflation fears recede, and the Federal Reserve remain unlikely to change monetary policy.
The EURUSD was today’s biggest currency faller, dropping 0.40% and giving back all of yesterdays gains. There has been little news out of Europe after the ECB members had been more dovish in their commentary with regards to QE in Q3 this year.
The DXY has got back above the $90 which has proven to be a significant psychological level for traders. The ActivTrader sentiment indicator is still at the very extreme 97% bullish reading for traders using the platform.