Summing up Mainstream media today…
Where to start…
Bonds – Good!
Stocks – Bad!
Commodities – Ugly!
* * *
Everything was red in equity index land today… Trannies worst day since January
Stocks are all red for the week… Dow is down over 400 points from Monday's highs back below its 200DMA; S&P 500 cash is back below its 50DMA; and Russell 2000 broke below its 50 & 100DMA
Financials have given up their earlier week gains (as rates flatten) and only builders remain green on the week…
Leaving The Dow red for 2015…
52-Week Lows are at their highest since 2014…
On the week, the Treasury complex is seeing major flattening as the long-end collapses while short-end lifts on rate hike expectations…
With 30Y retracing all “Greece is fixed” weakness…
With 2s30s near 3 month flats…
Maybe all that NIM hope is overprices after all…
The US Dollar leaked lower on the day as EUR strengthened and cable weakened…
Summing up th edetails across the FX space (courtesy of ForexLive)
The dollar was mixed in trading today. It rose against the GBP and AUD, fell against the EUR NZD. and JPY, and was little changed vs the CAD and CHF.
The cable was the big loser on the day and is closing near low levels after weak retail sales took some of the jubilance from thoughts of a quicker tightening. BOE McCafferty did comment, however, that the BOE must be careful not to keeps rates too low for too long. EURGBP surged higher in trading today.
In Canada, stronger than expected retail sales sent the USDCAD sharply lower, but oil price continued to fall with WTI crude down 1.14% on the day at the close. What was gained in the London morning session for the loonie (and after the release of the data) was taken all back by the close.
The EURUSD rallied to new week highs (highest level since July 15th). The pair did find sellers against technical levels defined by the 50% retracement and the 100 day MA at the 1.1011 and 1.1000 respectively.
Twenty-four hours after the RBNZ cut their rate by 25 basis points, the NZDUSD is ending the day up from 5 pm close at 0.6560 but off the London session highs at 0.6694. The pair is ending the NY session testing the 200 hour MA at the 0.6606 level. Disappointment from not cutting 50 basis points sent the pair higher but lower rates are still expected between now and the end of the year.
