STATE OF THE MARKETS
Thin markets amid US & Chinese holidays . With the US markets closed on Monday for President’s Day while China and Hong Kong were closed for the Chinese New Year; markets were left thin with only Europe, Tokyo and Sydney trading. Equities markets closed strong with Nikkei up 1.60% while FTSE UK up 2.52% as global bonds yields, except Germany, edged higher as price drifted lower. The UK 10Y yielded +0.05% higher to 0.57% as London closed.
Crude oil futures climbed further, to break $60/bl for the first time in 13 months as optimism continues to guide investors’ risk appetite, despite the facts of renewed lockdown in Europe and Australia. Gold on the other hand, continue to face selling pressure from yields seeking investors. The yellow metal closed around $1818.50/oz as FX markets closed in New York.
In the FX space, the optimism is evident as Yen lost support across the board and continue to support the rest of the G8 currencies next to the Greenback. Sterling and the Comdolls retained the helm of demand while the Greenback was sent to the back burner as Euro try to gain traction in the long term accounts.
OUR PICK – No New Pick
No new pick on thin markets. Our USD/CHF sell limit @ 0.8920/30 were filled last Friday as we closed our long. Currently we see the pair’s tendency to correct higher if 0.8880 remain bid with last defense at 0.8850. If still hold short, you may close or update SL to breakeven while waiting for target. Short term risk is turning up.
This article is for general information purpose only. It is not an investment advice or a solicitation to buy or sell any securities. Opinions expressed are of the authors and not necessarily of MFM Securities Limited or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.