Markets seem to have improved sentiment with dollar modestly higher 0.30% overnight, besides the US 10y Yields remained neutral by the end of trading last night at 2.39.
We want to remind last week’s Moody’s forecast “Fed Will Cut Rates If 10-Year Yield Breaks Under 2.4%”.
“As of March 28, and as inferred from the CME Group’s FedWatch Tool, the futures market assigns implicit probabilities to a fed funds rate that is less than its current 2.375% of (i) 29% following the FOMC’s June 19 meeting, (ii) 58% following the September 18 meeting, and (iii) 72% following December 11’s meeting,” they said in a note this week.
In commodities Brent crude oil managed to rebound from the neckline but as expected Gold rejected at the 61.8%, fib reaction coincided with the parallel resistance and lost nearly 2.00% from recent higher.
— KeytoMarkets (@KeytoMarkets) March 22, 2019
Among commodities, Palladium fell for the third straight session, seems bubble bust finally. Intraday support finds at 1330$ below here the ascending trendline finds at 1300$ and 1271$ its January 2019 low exists. The flip side resistance seems at 1430$ and 1450$.
In terms of macro data from yesterday, US Gross Domestic Product, 4th quarter take a step back but printed than forecast of 2.1%.
According to the official data, “GDP increased at an annual rate of 2.2 percent in the fourth quarter of 2018 from the initial estimate of 2.6%.”
Looking at the day ahead: It’s not a reasonably busy day for data highlights in Asia but worth to focus on GDP for the UK and Canada.
Chart of the day: USDCAD
Buying the breakout favors the trend. A move above 1.3470 needed to forecast 1.3600. The daily RSI lacks conviction whereas the oscillator is remaining bullish.
It is important to always keep in mind the risks involved in trading with leveraged instruments.
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