{"id":145671,"date":"2019-04-12T11:09:16","date_gmt":"2019-04-12T15:09:16","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=145671"},"modified":"2019-04-12T10:58:50","modified_gmt":"2019-04-12T14:58:50","slug":"equities-break-fresh-weekly-highs-on-risk-recovery","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/04\/equities-break-fresh-weekly-highs-on-risk-recovery\/","title":{"rendered":"Equities Break Fresh Weekly Highs On Risk Recovery"},"content":{"rendered":"
April 12, 2019<\/div>
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By <\/strong>Orbex<\/strong><\/a><\/p>\n

Dixy Down As Risk Rallies<\/strong><\/h2>\n

Over the European morning on Friday, the\u00a0US Dollar continued its decline<\/strong>, ending the week in the red after the three-week winning streak seen recently. Better risk appetite has seen a weakening of USD on safe haven outflows despite the release of the March\u00a0FOMC minutes this week which highlighted the raised risk of a further Fed rate hike<\/strong>\u00a0later in the year.<\/p>\n

Looking ahead to today\u2019s US session, traders are waiting on the\u00a0U. of Michigan sentiment index<\/a>\u00a0which is forecast to have fallen back slightly over March. USD Index traded lows of 96.45 today, breaking below last week\u2019s low, pointing to further downside to come.<\/p>\n

EUR Rises on USD Weakness<\/strong><\/h2>\n

EURUSD continues to benefit<\/strong>\u00a0from the current bout of USD weakness with the pair trading up to 1.1311 last as better risk appetite and news of a Brexit extension has boosted EUR. While concerns over the health of the eurozone economy remain prevalent, for now, the USD sell-off is the main driver.<\/p>\n

Brexit Extension Fails To Lift GBP<\/strong><\/h2>\n

GBPUSD is also a little higher today though\u00a0GBP moves have been far more limited<\/strong>\u00a0than those in EUR. News of an\u00a0October extension to the Brexit deadline\u00a0<\/strong>has kept GBP supported, though with political division running rife in UK politics, we haven\u2019t seen quite the relief rally man were expecting. GBPUSD trades 1.3077 last, remaining in the middle of the recent 5-day range.<\/p>\n

Equities End The Week At Highs<\/strong><\/h2>\n

Risk markets have been firmly higher today<\/strong>, ending the week on a solid footing. Optimism around the prospect of a US \/ China trade deal, as well as relief around news of the Brexit extension, have combined to keep equities well bid. SPX500 has traded up to 2899.88 last, breaking above last week\u2019s highs as the rally off 2860.11 continues.<\/p>

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Safe Haven Flows Hit Gold & JPY<\/strong><\/h2>\n

With risk seeing a better tone this week,\u00a0safe havens have traded lower<\/strong>. However, over the European morning today, gold prices actually traded up against USD, recovering some of yesterday\u2019s losses to print 1293.61 last, though the tone remains heavy. The Japanese Yen has been firmly weaker against USD with USDJPY trading up to 111.96, just below the 112.16 March high.<\/p>\n

Crude Oil Recovers<\/strong><\/h2>\n

A weaker US Dollar and better risk appetite have helped\u00a0crude oil get back on track<\/strong>\u00a0this week. Despite a mid-week dip in response to a\u00a0bearish report from the EIA<\/strong><\/a>\u00a0which highlighted a further build in US crude inventories, oil has recovered now and is back up near the week\u2019s highs, trading 64.63 last. OPEC production cuts and the expectation that cuts will be extended have helped keep oil well bid over recent months. This looks set to continue going forward.<\/p>\n

Commodity\u00a0<\/strong>Currencies Up<\/strong><\/h2>\n

The Canadian Dollar has been a strong beneficiary<\/strong>\u00a0of the moves in both oil and USD with USDCAD selling off from the 1.3377 resistance level to trade 1.3329 last.\u00a0AUDUSD has also seen a strong recovery<\/strong>\u00a0today with price trading back up to .7166 last, just below the week\u2019s highs. Any further positive headlines around US\/China trade talks will provide a strong boost for AUDUSD which continues to sit in the middle of the recent .7021 \u2013 .7237 range.<\/p>\n

By <\/strong>Orbex<\/strong><\/a><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By Orbex Dixy Down As Risk Rallies Over the European morning on Friday, the\u00a0US Dollar continued its decline, ending the week in the red after the three-week winning streak seen recently. Better risk appetite has seen a weakening of USD on safe haven outflows despite the release of the March\u00a0FOMC minutes this week which highlighted […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-145671","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/145671","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=145671"}],"version-history":[{"count":3,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/145671\/revisions"}],"predecessor-version":[{"id":145678,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/145671\/revisions\/145678"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=145671"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=145671"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=145671"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}