A lively start to the day, with the Australian down because of the country’s weak employment report. The risk remains fairly limited and defensive, supporting the hedging instruments in the short term, with USD / JPY trading around the bottom of the session.
The mixed results later in the evening on Wall Street and now in Asia suggest that it will also be the start of the European Stock Morning, where major indices will start off sharply in the search for directions.
Today, a whirlwind of economic news and reports awaits us, which can certainly play the role of catalyst if there are surprises.
We expect gross domestic product data in Germany and the EU as a whole, lower than projected and pointing to a contraction in the economy and possibly having a negative effect on the common currency and indices in the bloc.
In the afternoon, Jerome Powell will deliver his testimony to the Senate, addressing topics related to the future of monetary policy and the effects of the trade war with China on the country’s economy.
In a situation with so many variables and uncertainty in the markets, I expect today’s session to shift into pressure on risky assets, with investors seeking asylum against possible index adjustments. Gold is at key levels of support that market players are likely to take advantage of today, and we will see a resurgence of the core movement.
Trader Aleksandar Kumanov