- In the Forex market, the US Dollar has resumed its decline in line with its long-term bearish trend, as markets become more convinced the Fed will make one last 25bps rate hike at its next meeting before ending the cycle, which will be followed by rate cuts later in the year. Trend traders may be watching for a new short trade if confirmed by a renewed weakening in the greenback, probably looking to be long of the EUR/USD or GBP/USD currency pairs, both of which are in confirmed long-term bullish trends, with the EUR/USD looking more reliable as it is so close to its long-term high. Over today’s Asian session, the Euro has looked like the strongest major currency, while the Australian Dollar was the weakest.
- Several soft commodities are performing well, with the Sugar ETF CANE and the Cocoa ETN NIB reaching new multi-year high prices over recent days.
- The Governor of the Bank of Japan stated earlier, ahead of the Bank’s monthly policy meeting later this week, that monetary easing has helped raise trend inflation already closer to its 2% target. The statement had little impact upon the Japanese Yen.
- Stock markets are mostly lower over the past day, especially in China where the Hang Seng Index had another strong down day.
- There will be releases later of Australian CPI (inflation) data and US CB Consumer Confidence.
- It is a public holiday today in Italy.