Yesterday we had Japan Flash Manufacturing PMI in Asian session which came out positive than previous and expected. This is the fastest expansion in almost 3 years for Japan.
In London, most Flash Manufacturing PMI and Service PMI were largely positivel or in line from France, Germany and Eurozone.
Finally we had the main event of High Court Ruling for UK and the result was as expected a favour for the Parliament.
Now the Parliament has to get involved for triggering Article 50 and the Brexit has become more soft than ever.
This of course added on more positive sentiment to the already strong GBP to make it even stronger.
We did have the “buy rumour sell fact” effect to see GBP spiked a bit initially only to retrace, and later to climb up again. It was a typical text book reaction of the market but the reaction was much smaller in comparison to what happened last week from PM May’s speech.
In NY session the Flash Manufacturing PMI from US was also positive although existing Home Sales number was negative than expected and previous due to supply drop.
As mentioned, U.S datas continued to be solid and the fundamental picture is strong, however, the protectionism policy from Donald Trump still pressured the overall sentiment for the dollar.
Home sales could be expected to drop further due to possible high yield to reflect in the mortgage in the future to pressure the housing market. However, the tightening labour market and economic strength might offset that.
WTI climbed up a bit today but basically had no movement, still around $52.50 to $53.
Equity markets were all green to give us another risk on sentiment, it seems market was not that bearish in front of Donald Trump.
Gold also lost $7 dollar today.
Donald Trump signed order for Keystone XL and Dakota Access oil pipeline to resume construction, this injected a positive sentiment for oil market but more for Canadian producer and CAD.
The current strength for EUR & GBP has continued to climb higher, the bright numbers of PMI across EU has once again sparked doubt with ECB’s easing program and wave or protest for ECB to stop low interest rate market asap.
The Parliament involvement of Brexit alone with the clarity from PM May’s plan has further reduced the uncertainty for GBP, right now it’s still a fundamental weak currency but the new sentiment has provided to be a great boost for it.
USD & CAD still remain to be negative sentimentally, although we have days of positivity & negativity, but it’s hard to trade because it reacts completely different in front of major news and completely disregard the fundamental strength.
JPY & CHF also still remain negative and react in accordance with the risk sentiment of the day - which is also impossible to predict from day to day. It will only be good to trade them when we’re facing a certain catalyst.
AUD & NZD continue to outperform with growth from China and high commodity price.
AUD will have the CPI datas later on which will be a turning point to either boost it further or reverse the direction.
Because of the dollar strength today, we will like to trade AUD/USD short in front of a negative deviation.
If the CPI results are a beat, we can buy AUD/JPY instead to take advantage of the current risk on sentiment.
Yesterday we had Japan Flash Manufacturing PMI in Asian session which came out positive than previous and expected. This is the fastest expansion in almost 3 years for Japan.
In London, most Flash Manufacturing PMI and Service PMI were largely positivel or in line from France, Germany and Eurozone.
Finally we had the main event of High Court Ruling for UK and the result was as expected a favour for the Parliament.
Now the Parliament has to get involved for triggering Article 50 and the Brexit has become more soft than ever.
This of course added on more positive sentiment to the already strong GBP to make it even stronger.
We did have the “buy rumour sell fact” effect to see GBP spiked a bit initially only to retrace, and later to climb up again. It was a typical text book reaction of the market but the reaction was much smaller in comparison to what happened last week from PM May’s speech.
In NY session the Flash Manufacturing PMI from US was also positive although existing Home Sales number was negative than expected and previous due to supply drop.
As mentioned, U.S datas continued to be solid and the fundamental picture is strong, however, the protectionism policy from Donald Trump still pressured the overall sentiment for the dollar.
Home sales could be expected to drop further due to possible high yield to reflect in the mortgage in the future to pressure the housing market. However, the tightening labour market and economic strength might offset that.
WTI climbed up a bit today but basically had no movement, still around $52.50 to $53.
Equity markets were all green to give us another risk on sentiment, it seems market was not that bearish in front of Donald Trump.
Gold also lost $7 dollar today.
Donald Trump signed order for Keystone XL and Dakota Access oil pipeline to resume construction, this injected a positive sentiment for oil market but more for Canadian producer and CAD.
The current strength for EUR & GBP has continued to climb higher, the bright numbers of PMI across EU has once again sparked doubt with ECB’s easing program and wave or protest for ECB to stop low interest rate market asap.
The Parliament involvement of Brexit alone with the clarity from PM May’s plan has further reduced the uncertainty for GBP, right now it’s still a fundamental weak currency but the new sentiment has provided to be a great boost for it.
USD & CAD still remain to be negative sentimentally, although we have days of positivity & negativity, but it’s hard to trade because it reacts completely different in front of major news and completely disregard the fundamental strength.
JPY & CHF also still remain negative and react in accordance with the risk sentiment of the day - which is also impossible to predict from day to day. It will only be good to trade them when we’re facing a certain catalyst.
AUD & NZD continue to outperform with growth from China and high commodity price.
AUD will have the CPI datas later on which will be a turning point to either boost it further or reverse the direction.
Because of the dollar strength today, we will like to trade AUD/USD short in front of a negative deviation.
If the CPI results are a beat, we can buy AUD/JPY instead to take advantage of the current risk on sentiment.