Quick Recap
Oil higher, stocks rallying, and the US dollar under pressure.
That’s the brief summary of overnight trade as the Ukrainian ceasefire agreement and the Greek agreement to agree to keep talking. US retail sales were weaker than expected also which put the dollar under pressure.
Readers of the afternoon report know that I have already been bullish Sterling so last nights move is likely the first step in a big rally to come. But for the Euro these might be the signals I’ve been waiting for to get bullish Euro.
That’s not to say that I’m not still worried about Greece because it is worth noting that news emerged last night (via the FT) that an agreement, which satisfied all parties, was formed – including Greece’s new Finance Minister and Deputy PM – but it was scotched by Athens. The situation remains fluid, but that’s for next week.
For the moment though the preconditions to the US dollar selloff we have been waiting for are converging.
On the day
We hear from RBA Governor Stevens this morning at 9.30am. He’ll be addressing the House of Reps Economics Committee. Tonight German and EU wide GDP are going to be huge. US import and export data will be worth watching.
Anyway here’s the overnight Scoreboard (9.07 am AEDT):
- Dow Jones: up 0.62%, 110 points to 17,972
- Nasdaq: up 1.18%, 57 points to 4,858
- S&P: up 19 points, 0.94% to 2,088
- ASX SPI 200 Futures: up 35 points
- FTSE: up 0.14%, 10 points to 6,828
- AUDUSD: 0.7739
- EURUSD: 1.1406
- Crude: up 4.65% to $51.11
- Gold: $1,221
A quick chart
GBPUSD – BROKEN! my target is 1.5480 then 1.5620 with a real chance of a move in time to 1.58.
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