{"id":147668,"date":"2019-05-14T10:15:38","date_gmt":"2019-05-14T14:15:38","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=147668"},"modified":"2019-05-14T09:46:20","modified_gmt":"2019-05-14T13:46:20","slug":"markets-stabilize-following-explosive-moves-yesterday","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/05\/markets-stabilize-following-explosive-moves-yesterday\/","title":{"rendered":"Markets Stabilize Following Explosive Moves Yesterday"},"content":{"rendered":"
May 14, 2019<\/div>
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By <\/strong>Orbex<\/strong><\/a><\/p>\n

Little to Report in USD<\/strong><\/h2>\n

The US dollar was slightly higher over the European morning on Tuesday. The\u00a0index rose to 97.16 last<\/strong>, keeping its head above the 97.10 level. Looking ahead to today\u2019s US session, there is very little on the data sheet. Therefore, we expect quiet trading.<\/p>\n

Soft ZEW Surveys Hit EUR<\/strong><\/h2>\n

EURSD traded lower over the day s<\/strong>o far with sentiment weighed upon by a set of weak data from the eurozone and Germany.<\/strong>\u00a0ZEW surveys were\u00a0weaker than expected<\/a>\u00a0with both counts printing minus figures. EURUSD remains above 1.1217, for now, but is turning lower quickly.<\/p>\n

GBP Down on Weak Wage Growth<\/strong><\/h2>\n

GBPUSD has found itself lower again today, with the pair now back firmly below the 1.30 level. This morning, the latest data from the ONS showed that despite unemployment ticking lower again in the 3 months to March (3.8%),\u00a0wage growth came in lower than expected at 3.2% vs 3.4% expected a<\/strong>n<\/strong>d 3.5% last.<\/strong><\/p>\n

Risk Sentiment Stabilises<\/strong><\/h2>\n

Risk sentiment has seen some recovery so far today.\u00a0SPX500 is trading back above the 2816.15 level<\/strong>which was broken yesterday. SPX500 sold off sharply yesterday in response to news that China has retaliated to the US tariffs. The Asian giant announced its own 25% tariffs on 5000 items which will be coming into effect on June 1st<\/sup>.<\/p>\n

The UK100 has also been higher over the European morning today.\u00a0<\/strong>It was boosted by risk buying across the board as well as a weaker GBP.<\/strong>\u00a0The UK100 bounced off the 7156.4 level and is now making its way back up to test the 7262.6 level from the underside.<\/p>

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Safe Havens Retreat Following Big Gains Yesterday<\/strong><\/h2>\n

With the recovery in risk sentiment, safe havens have come off a little over the day so far.\u00a0B<\/strong>oth gold and JPY are down against USD following explosive moves yesterday.<\/strong>\u00a0XAUUSD blew through the 1298.32 level resistance yesterday in response to the China retaliation news.<\/p>\n

However, price is back below the level today. USDJPY similarly crashed through 109.70 support to trade lows of 109.02. But, we are now back up, challenging the level from the underside today.<\/p>\n

Crude Rises Again<\/strong><\/h2>\n

The recovery story is visible in oil today also.\u00a0Crude is<\/strong>\u00a0recouping some of the losses suffered yesterday in response to the China news.<\/strong>\u00a0Crude was initially trading higher yesterday due to heightened tensions in the Middle East following Iranian attacks on Saudi oil tankers. However, it cratered in response to news of the China tariffs. For now, price is between the 60.41 and 61.89 levels.<\/p>\n

Commodity Currencies Mixed Between Oil & China Themes<\/strong><\/h2>\n

The rebound in oil prices has helped CAD make up some lost ground. USDCAD is pulling away from the 1.3469<\/strong>\u00a0level once again after trading above the level yesterday. Weakness in oil along with concerns over the global trade landscape will likely keep CAD pressured in the near term. However,\u00a0Middle\u00a0East tensions have the potential to keep oil supported which should buffer CAD losses.<\/p>\n

AUDUSD has not been supported by the moves in oil today or the recovery in risk appetite.<\/strong>\u00a0Concerns around the impact that fresh tariffs will have on the Chinese economy, as well as world trade in general, are clearly visible in AUDUSD. The pair continues to plow lower today having broken firmly below the .6982 support level on yesterday\u2019s news.<\/p>\n

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

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

By Orbex Little to Report in USD The US dollar was slightly higher over the European morning on Tuesday. The\u00a0index rose to 97.16 last, keeping its head above the 97.10 level. Looking ahead to today\u2019s US session, there is very little on the data sheet. Therefore, we expect quiet trading. Soft ZEW Surveys Hit EUR […]<\/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-147668","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/147668","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=147668"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/147668\/revisions"}],"predecessor-version":[{"id":147673,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/147668\/revisions\/147673"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=147668"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=147668"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=147668"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}