STATE OF THE MARKETS
Thin markets amid US labor day. Global equities from FTSE (+0.68%) and Nikkei (0.87%) climbed higher on Monday, while US markets closed for Labor Day. Weak NFP numbers on Friday sent Dollar (DXY) spiraled to 91.80 before settling above 92 handle as the 10Y benchmark firmed above 130 basis points.
In the commodities market, crude gapped down after weaker NFP numbers suggested that recovery maybe slower than expected. Asian session however saw a firm bid as the black gold remained above $68/bl. Gold was little changed, continuing in a tight range of $1,830.65 ā $1,823.65/oz after surged on Friday as weaker NFP suggested that Feds may stand pat for a while.
In the FX space, short term traders revert to Dollar bidding on oversold conditions while long and medium term investors send the King to the back burner. Aussie, Kiwi and Loonie continue to dominate demand across horizons, alongside Euro and Yen, as Swiss and Yen suggest cautious markets.
OUR PICK ā GBP/USD.
Rising on flat momentum. Recent GBP/USD exchange rate rise on the anticipation of a weaker Dollar as Feds may stand pat on dismal employment figures, was on flat momentum. This suggests that buyers were non committal and may just be covering their shorts. After all, per CFTC last CoT report, speculators have turned bearish with net 16,745 short contracts worth $1.44 billions.
Disclaimer:
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.