Lots of talk about possible QE in the eurozone, negative interest rates in Japan and Switzerland and rate cuts in the US. So lots of focus on currency markets, especially Japanese yen and Swizz Franc. At the time of the risk-off mode, safe-haven currencies outperform the rest. Besides, Gold and Bonds are the safe bets to hide in uncertainty.
Overnight the best performing currencies have been GBP and JPY, +0.35% each. Besides stocks slipped following a sharp rebound on Monday. Especially European stocks lowered on Italian political crisis. Giuseppe Conte announced his resignation as Italian Prime Minister on Tuesday as he faced a no-confidence vote from Matteo Salvini. Italy’s FTSE MIB plunged 1.30% later recovered and closed -0.70%. Technically closed above 200MA.
With the dollar and yields retread, Gold rallied 0.75% to 1508.50$. Gold ahs an intraday resistance at $1,511.00. Flipside supports located at $1,499.00 and $1,492.00
The other week the US announced a delay in the imposition of additional tariffs on Chinese imports. Markets reacted positively to the deal, but the gains were short-lived. Since then JPY crosses have been consolidating in a narrow range. AUDJPY and USDJPY have to come out of the range to print a corrective rally/a bounce.
Resistance located at 73.00 for AUDJPY and 107.00 for USDJPY.
Looking ahead, it is a quiet session in Asia and Europe. Investors turned cautious ahead of FOMC July meeting minutes. These will provide details on the discussions leading to the first interest-rate cut in a decade.
Crypto update: Have a look at this move just now Bitcoin dropped 4.0%
Support finds between 9690-9590 below here focus shifts at 9350 and 9080/9000 levels.
It is important to always keep in mind the risks involved in trading with leveraged instruments.
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