Summary:
- Another DOE build has seen oil drop sharply to near its weekly lows
- BOC keep rates on hold, but trade warning weighs on CAD
- ADP beats forecasts as NFP hopes are raised
- Crypto markets sell-off
- ECB and NFP preview
The weekly DOE inventory data from the US has shown another build and despite an attempt to move higher immediately following the release the Oil markets remain under pressure. A rise of 2.4M was marginally lower than the 2.6M expected, and given that last night’s API showed a large build of 5.7M the initial move to the upside could be expected. The surge higher was around 60 cents but this has since been erased in its entirety and the market now trades lower on the day.
Given the fallout from last month’s NFP report, this Friday’s release will no doubt be highly anticipated. Today we’ve had some data to whet the appetite, with the ADP coming in better than expected and raising the bar for the NFP release. The employment change showed 235k jobs being added in February, above the 199k expected and market the 3rd consecutive beat for this print.
All major virtual coins such as Bitcoin, Ripple, Litecoin, Ethereum or Dash are losing steam while some of them have already achieved decent technical levels which could serve as a tipping point in the short-term. First and foremost, let us remind our view expressed on Tuesday with regard to Bitcoin when we warned about a possible bearish engulfing
While this week’s focus is rightly on the simmering trade wars sparked by Trump, traders will also have an eye on key calendar events ahead: the ECB meeting and NFP report. We analyse these events and look at relevant markets: EURUSD and US500. An in-depth preview of both events can be found here.