Markets make solid recovery overnight
Another interesting day coming up for markets. Which way will they head?
The EURUSD steadied itself overnight, opening and closing rather flat. The pair began the day at $1.11960 and climbed to a high of $1.12489 early before reversing those gains over a large portion of the day. The euro hit lows of $1.11667 late in the day but has recovered somewhat and is now trading at $1.12017. The GBPUSD made some modest gains overnight, correcting some of the mass sell-offs last week. The pair opened at $1.21391 and dipped to an opening-hour low of $1.21339. From there however, the pound trended up, peaking at $1.22087 mid-session before falling away during late-session trading. It is currently trading at $1.21626.
The Dow led a recovery of sorts overnight after plummeting 1,000 points in the previous session. The index opened at 25,496.87 and fell to lows of 25,080.15 in what looked like ominous signs of another sell-off. However, the Dow rallied off those lows, surging 1,000 points to hit a high of 26,056.31 late in the day. It is not far off those highs, currently trading at 25,904.88. The Dax was relatively flat overnight, uninterested in the Dow’s surge. The German index opened at 11,632.99 and edged up to a high of 11,747.06 mid-session. Those highs were not held for long as the Dax slipped to lows of 11,548.08 before closing at 11,643.63.
The day ahead is light-on for data but it also represents an intriguing day as markets work out what happened when the sell-off occurred on Monday. The lack of data may give analysts some time digest the latest trade escalation between the US and China and work out which direction markets may go from here.
Data published today includes:
Australia – Home Loans
UK – Halifax HPI
Canada – Ivey PMI
US – Crude Oil Inventories, Consumer Credit, FOMC Member Charles Evans speaks
Europe – German Industrial Production, French Trade Balance, Swiss Foreign Currency Reserves
NZ – Official Cash Rate, RBNZ Rate Statement, Monetary Policy Statement and Press Conference
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