Markets stay under pressure as month-end profit taking looms

Frank Walbaum

Important news this week

Wed, 30th, 03:30 CET AU Consumer Price Index.
Wed, 30th, 14:30 CET US Core PCE Price Index.
Fri, 02nd, 14:30 CET US Nonfarm Payrolls.

Markets stay under pressure as month-end profit taking looms

The USD is mixed, while metals are starting to recover. The AUD remains under pressure after Australian consumer confidence fell from 1.0% to 0.4% month-on-month. Oil also remains weak, while equities continue to edge lower.
With the month coming to an end, profit taking could be contributing to the current weakness. After the strong moves seen across several markets, investors may be locking in gains before the new month begins.

Market talk

The recent weakness does not necessarily point to a broader trend change. Month-end positioning can create additional volatility, particularly when markets have already moved significantly. The next few sessions could therefore be important in determining whether the current pullback is temporary or develops into a larger correction.
The softer AUD highlights the importance of incoming economic data for currencies. A weaker domestic outlook can reduce expectations for further monetary tightening and put additional pressure on the currency, especially when the USD remains supported.

Tendencies in the markets

Equities weak, USD near resistance, crypto correcting, oil correcting, metals positive, JPY stronger.

Author

Frank Walbaum

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