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US Dollar Regains Some Strength

Published 17/10/2017, 02:55 pm
Updated 06/07/2021, 05:05 pm

Originally published by AxiTrader

Markets Overview:

NY Wrap:

  • Oil prices jumped overnight, amid concerns that clashes between Iraqi and Kurdish forces could disrupt supply
  • Most other commodities rallied as well; Copper jumped above $3.20 – taking out a major technical level
  • Equities finished the trading day on a positive note, with all US indices up on the day
  • Investors still show risk appetite amid high expectations for the current earnings season
  • Several major companies will present their Q3 numbers this week – including GE (NYSE:GE), Johnson & Johnson (NYSE:JNJ), Goldman Sachs (NYSE:GS) and Daimler (DE:DAIGn)
  • Solid numbers could push stocks to fresh record highs
  • However, some risks exist as investors are keeping an eye on political developments as well – US-Iran relations and Catalonia
  • If earnings season disappoints, focus could shift to the political developments and investors betting on further gains could be walking on thin ice

FX:

  • Greenback regained some strength following a strong NY Empire State Manufacturing Index print
  • Pound under increased pressure as Brexit negotiations proved once again to be tough
  • Euro consolidates around 1.18 – traders might need to get used to lower euro volatility ahead of the next ECB meeting in two weeks, which could end up being one of the most important ones recently. Euro bulls are expecting that the central bank will signal the shift of monetary policy and present the details
  • Yen retraced some of its recent gains as risk appetite in the stock market remains solid
  • AUD/USD gains were capped at the 21 DMA at 0.7880; short-term outlook mixed following double top pattern at 0.81

APAC Preview:

  • New Zealand CPI at 2145 GMT - expected at 0.4 % q/q and 1.8 % y/y
  • RBA meeting minutes at 0030 GMT - unlikely to include any surprises

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