The market sentiment is mixed, but there are still interesting movements on the market.
Daily News: Wednesday, March 14
Mr. Trump cannot stop: U.S. Secretary of State Rex Tillerson resigned yesterday. It is the fifth resignation during two weeks. Such replacements shake markets a lot.
- An appointment of CIA director Mike Pompeo means the further escalations in concern over global trade war and international conflicts.
- Asian stocks fell based on the news from the White House.
- The 10-year Treasury yield declined as both headline CPI and core CPI showed weaker figures (CPI m/m against 0.2% against previous 0.5%, core CPI m/m 0.2% against 0.3%).
- The US dollar index fell that led to the strengthening of some currencies.
- The euro is unstable because of Mr. Draghi comments about the predictable European policy. Moreover, Mr. Draghi announced that euro strength could weigh on inflation down the line. US retail sales and PPI m/m releases are anticipated today at 14:30 MT time. If data is greater than expected, the euro will fall further. The support lies at 1.2360.
- After the three-day increase, the pound is falling. The UK currency could not break the resistance at 1.3965 and turned around. No important data is anticipated at the rest of the week. So let’s see, maybe negative US data will support the sterling.
- The US dollar is strengthening against the yen. The Governor of the bank of Japan Mr. Kuroda said that there is no point to consider changes in the monetary policy until the target of inflation is reached.
- The Canadian dollar is continuing to fall against the greenback. Yesterday the loonie showed a great decline because of the comments of the Bank of Canada’ governor Mr. Poloz. He declared that the Canadian economy rises without the increase in inflation. It means that the BOC does not plan to raise interest rates in the soon future.
- Although comments of the assistant governor Christopher Kent did not give any reasons to anticipate an increase of RBA’s interest rates, the Australian dollar is rising. Net strong data from China pushed the aussie. The AUD/USD pair is moving to the resistance at 0.79.
- Bitcoin fell closer to $9,000. Maybe the news on the Google’s ban on cryptocurrency and ICO ads caused the decline.
Ex- U.S. secretary of State Rex Tillerson and president of the US Donald Trump
US Core monthly retails sales will be announced on Friday at 15:30 MT time.
Stock significantly surged: S&P 500 and Nasdaq reached 6-week highs. The market sentiment may deteriorate today as Johnson & Johnson’s Covid-19 vaccine trails have been stopped because of the unexplained illness.
Canada’s retail sales will be out on October 21 at 15:30 MT time. Get ready with us for this event!
The market is resilient ahead of the speeches of Fed’s Powell and ECB President Lagarde, but there are still interesting movements.
The uncertainty over US fiscal stimulus and Brexit, and also rising new virus cases deteriorated the market mood. That’s why we can expect the further rally of the US dollar and the fall of riskier assets today.