EU Morning Report – Gold surges, equities fall as risk aversion picks up!
Here are the latest Financial News:
Gold surges, equities fall as risk aversion picks up!
- Markets yesterday traded with caution once again with the US equity markets finishing the session below -1.15% and gold approached last month’s record highs to $1245. The VIX, a gauge of fear, traded above 3% to 36.6 as the overall market uncertainty as to developments in Europe and US economic recovery are causing many market participants to purchase insurance in the form of options against future adverse movements in most assets. The only economic data released out of the US on the day was the consumer credit report which showed an increase of $1 bio. We also heard some comments from soon to be Federal Reserve Vice Chairman Janet Yellen saying that ”significant; headwinds to stability remain”. USDJPY price action yesterday was between 91.00 – 92.07.
- In Europe we saw continuous declines in equity and currency markets following the previous days shocking comments from Hungarian officials about the possibility of default. From the financial calendar we had a much stronger than expected factory orders report jumping 2.8% for the month as well as a successful bond auction by the Dutch and Belgian treasury. This shows that the market still segregates between Northern and Southern countries and that Northern EU members have not experienced any significant rise in the cost of financing their debt. EURUSD price action yesterday was between 1.1991 – 1.1875.
Currency to watch out for: EURUSD & USDJPY
- § The EURUSD pivot point is at 1.1990 with a preference to enter into Short positions at 1.1980
- § The USDJPY pivot point is at 91.85 with a preference to enter Short positions at 91.80
Today’s calendar and market movers:
- § Germany Industrial Output for the month of April expected at 0.8%
- § Canada Housing Starts for May expected at 200K
- § US Redbook for the week, previous months reading was 0.3%
Equity Markets:
- US equities closed negative yesterday with the S&P500 down by -1.35% and the DJIA down by -1.16%. The European bourses were negative yesterday with the FTSE down -1.11% the DAX and the CAC closing at -0.57% and -1.21%. The NIKKEI and the HSI at the time of writing is 0.18% and 0.35% respectively.
Source: Easy Forex
Recommended Forex Brokers: AvaFX and Forex Yard
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