There’s a firmer tone in early trade across European and US stock index futures this morning. Investors were relieved that Wall Street got through the first session of the week with only a modest loss on the NASDAQ100 and small gains for the Dow and S&P500. There had been fears that last week’s selling may accelerate given the ructions and uncertainty apparent within the Trump administration and concerns that this week’s US/South Korean military exercises around the Korean peninsula could trigger hostilities with North Korea. But for now it looks as if traders are taking advantage of the recent sell-off to buy the dips, in tried and tested manner. The question is if it will work as well now as it has in the past.
Crude oil has steadied after plunging yesterday afternoon although it has simply reversed Friday night’s sharp rally which was triggered by a slight fall in the US rig count. But gold and silver are drifting lower while the dollar is a touch firmer. However, FX traders are unlikely to position themselves aggressively ahead of the Jackson Hole Economic Symposium which begins on Thursday. Janet Yellen and Mario Draghi are both scheduled to speak on Friday although both camps have being playing down expectations that they will announce anything dramatic in terms of monetary policy.
Financial spread trading comes with a high risk of losing money rapidly due to leverage. You should consider whether you can afford to take the high risk of losing your money.
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EUR/USD steady below 1.0800 after US PCE meets expectations
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair barely reacted to US PCE inflation data, with the Greenback shedding some pips. Fed Chair Jerome Powell set to speak ahead of the weekly close.
GBP/USD hovers around 1.2620 in dull trading
GBP/USD trades sideways above 1.2600 amid a widespread holiday restraining action across financial markets. Investors took a long weekend ahead of critical United States employment data next week. Fed Chair Powell coming up next.
Gold price sits at all-time highs above $2,230
Gold price holds near a fresh all-time high at $2,236 in thinned trading amid the Easter Holiday. Most major world markets remain closed, although the United States published core PCE inflation, the Federal Reserve’s favorite inflation gauge.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.