After a massively drawn out press conference from Kuroda and the BoJ, I think it’s safe to move back on into some European session themes.
- Already discussed some EUR/USD technicals into tonight’s medium impact data.
- Likewise some USD/JPY technicals post BoJ.
- GBP/USD relatively quiet with the BoE rate decision this week well expected and priced in.
- AUD/USD still capped by daily resistance zone.
- The DXY right at support. Risk of a decent lurch lower if it goes. – chart discussion to come
- The weaker USD helping Oil rally.
- Oil through $70 again but back into short term resistance – chart discussion to come
- Supply and transport route issues through the middle east putting more upward pressure on prices.
- The S&P 500 came off further last night.
- Everyone seems to be shorting… Never makes you feel good to be one of the crowd. This worries me.
- Will the Fed shy away from 2 hikes in 2018 is the question.
- Iran and China making headlines
- Trump happy to meet the Iranian leader without preconditions – “If they want to meet, we’ll meet”. – Ha!
- Pompeo on China – “US believes in strategic partnerships, not strategic dependency”. – A dig at Chinese financial aid with strings attached.