Happy Monday Morning from Bangkok.
Broader market sentiment will likely tango to the mood music in Washington as the debt ceiling discussion evolves. President Joe Biden and House Republican Speaker Kevin McCarthy will meet after a reportedly"productive" phone call on Sunday as the president returned from the G7 summit. And while the mood is far doom, traders still have 2 feet on the pedals.
It seems pretty likely that a full-fledged deal will be reached before early June, but the timing is hard to predict. While negotiation strategy and political incentives imply a last-minute deal, we will soon find out if it's baked beans or lobster during the Memorial Day holiday.
The US Dollar is trading lower partly due to the debt ceiling standoff but more likely due to the Fed officials being more open to a June pause.
As global investors tap dance around the debt ceiling debate and with G-7 out of the way, it could be time to start rummaging through collateral damage in China after growth data fell off a cliff. Still, with the Yuan above 7.00 and the market unlikely to receive any immediate policy support, any upside will require China to regain positive momentum in industrial activity data or, failing that, the start of a Fed easing cycle.
SPI Asset Management provides forex, commodities, and global indices analysis, in a timely and accurate fashion on major economic trends, technical analysis, and worldwide events that impact different asset classes and investors.
Our publications are for general information purposes only. It is not investment advice or a solicitation to buy or sell securities.
Opinions are the authors — not necessarily SPI Asset Management its officers or directors. Leveraged trading is high risk and not suitable for all. Losses can exceed investments.
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Editors’ Picks
AUD/USD remains under pressure above 0.6400
AUD/USD managed to regain some composure and rebounded markedly from Tuesday’s YTD lows in the sub-0.6400 region ahead of the release of the Australian labour market report on Thursday.
EUR/USD faces decent contention around 1.0600
The knee-jerk in the Greenback reignited some buying interest in the risk complex and pushed EUR/USD to three-day highs near 1.0680, rapidly leaving behind the recent yearly low around 1.0600.
Gold eases despite risk-off mood
Gold trades in a relatively tight range near $2,390 in the second half of the day on Wednesday. In the absence of high-tier data releases, investors keep a close eye on headlines surrounding the Iran-Israel conflict.
Ethereum trades around the $3,000 support following a surge in validator queue
Ethereum (ETH) continued a sideways movement on Wednesday as investors seemed to be waiting for an upward or downward price catalyst. Despite the price stagnancy, the ETH validator queue - possibly fueled by the DeFi restaking boom - rose sharply.
Australia unemployment rate expected to rise back to 3.9% in March as February boost fades
Australia will publish its monthly employment report first thing Thursday. The Australian Bureau of Statistics is expected to announce the country added measly 7.2K new positions in March after the outstanding 116.5K jobs created in February.