Summary:
- DE30 declines after early promise
- USD under pressure after soft data
- DOE inventories drop – but by less than the API number
- Scandinavian currencies fall on housing market concerns
- Dash surges higher once more thanks to Zimbabwe
If yesterday’s trade could be summarised by as containing several strong moves higher, today has seen a reversal of sorts. The DE30 is arguably the best example of this with the market falling more than 100 points today after ending Tuesday’s session at its highest level in more than a week.
The US dollar has also shown some sizable declines during today’s trade with a sharp drop in durable goods orders heaping the pressure on an already shaky market. The USDJPY has hit its lowest level in a month this afternoon and given the risk-off moves seen in the DE30 there could well be more downside ahead for this pair.
The price of oil pulled back today despite the weekly DOE inventories declining. The decline however was smaller than the one seen in last night’s API and a rise in the distillate component could also have been a contributory factor to the initial negative reaction. Oil.WTI has recovered into the European close however and remains firmly above the levels seen heading into last night’s API figure.
A technical overview of Oil.WTI can be found here.
The Scandinavian currencies made substantial declines over the course of the last seven days partially on the back of the stronger single currencies, however there were important domestic factors standing behind this sell-off as well. Both Norway and Sweden conducted expansionary monetary policy in the past months and therefore there are more and more assumptions that real estate bubbles could have emerged in the aftermath.
Dash has drawn the most attention thus far this week as it’s surged much above $550 recently. It’s worth underlining that the price has more than doubled its value this month climbing from around $250 to the peak registered a touch below $570 on Wednesday. The main reason could be a plan aimed at solving an internal crisis taking place in Zimbabwe.