Feb 6th, 2018: Global Market Rout
February 6, 2018 8:11 amVideo
Latest News
- Outlook for GBP/USD on April 18. Pound was not impressed by the inflation data April 18, 2024
- Outlook for EUR/USD on April 18. Euro has fallen into a new flat April 18, 2024
- GBP/USD. Correction or trend reversal? April 18, 2024
- The FOMC will not lower rates in 2024 April 18, 2024
- Powell made a bold point, and Bailey did not report anything important April 18, 2024
- Will the euro take a risk? April 18, 2024
- Trading Signals for GOLD (XAU/USD) for April 17-19, 2024: sell below $2,400 (21 SMA – double top) April 17, 2024
- Technical Analysis – GBPCAD hits a wall but bulls not ready to give up April 17, 2024
- Trading Signals for Ethereum (ETH/USD) for April 17-19, 2024: sell below $3,125 (21 SMA – 2/8 Murray) April 17, 2024
- Analysis for the EUR/USD pair on April 17th. Jerome Powell didn’t help the dollar much April 17, 2024
- Analysis for GBP/USD pair on April 17th. British inflation overtakes American inflation April 17, 2024
- USD/JPY: Simple Trading tips for novice traders on April 17th (US session) April 17, 2024
- GBP/USD: Simple trading tips for novice traders on April 17th (US session) April 17, 2024
- EUR/USD: Simple trading tips for novice traders on April 17th (US session) April 17, 2024
- GBP/USD: trading plan for the US session on April 17th (analysis of morning deals) April 17, 2024
- Technical Analysis – EURUSD takes a breather after sharp tumble April 17, 2024
- Market continues to price in a plethora of rate cuts for 2024 – Special Report April 17, 2024
- EUR/USD: trading plan for the US session on April 17th (analysis of morning deals) April 17, 2024
- Technical Analysis – EURGBP maintains bearish bias amid pennant formation April 17, 2024
- EUR/USD. April 17th. Jerome Powell supports the dollar April 17, 2024
Morning Report: 07.00 London
It is said that stock markets go upstairs and down escalators. This much is true of the current sell-off as 2018’s carefully fought gains are reversing in three brutal sessions. The S&P 500 is now negative for the year, with the Down Jones dropping over 1,000 points since last week’s high. There are many potential catalysts for this, but the most likely explanation is that markets have been running hot for too long and were due a correction.
Friday’s higher than expected wage growth sparked fears of higher inflation and therefore higher interest rates in the US. The dollar has rallied hard while other currencies falter. Dollar pairs are well off recent highs, with the AUD/USD continuing its poor run that started on the 29th. The GBP/USD has experienced its worse two day fall of 2018 to date, with small gains this morning. The euro is holding up relatively well by contrast. The EUR/GBP is slipping back slightly after three days of gains.
Despite the strong dollar, the USD/JPY has hit reverse mode as money flows from the dollar into the perceived safety of the yen. The GBP/JPY is the worse performer on the week, falling over 2%.
Gold has climbed as investors seek our safe havens, while oil prices reverse.
Coming up today
Today, we have German Buba president Weidmann speaking at 09.00.
Canadian trade balance is at 13.30. Ivey PMI follows at 15.00.
Trade Idea
Will we bounce or continue to slide from here? In the short term, we could see some extreme volatility in both directs, but in the medium term we may well have seen a medium term top in world markets given their over valuation.
The AUD/JPY is the most sensitive to these moves, with further downside on the cards.
A good way to play this is a LOWER trade predicting that the AUD/JPY will touch 84.00 in 14 days for a potential return of 104%.
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