The Daily Edge is authored by Ivan Delgado, 10y Forex Trader veteran & Market Insights Commentator at Global Prime. Feel free to follow Ivan on Twitter & Youtube weekly show. You can also subscribe to the mailing list to receive Ivan’s Daily wrap. The purpose of this content is to provide an assessment of the conditions, taking an in-depth look of market dynamics – fundamentals and technicals – determine daily biases and assist one’s trading decisions.
The Daily Edge is authored by Ivan Delgado, Market Insights Commentator at Global Prime. The purpose of this content is to provide an assessment of the market conditions. The report takes an in-depth look of market dynamics, factoring in fundamentals, technicals, inter-market in order to determine daily biases and assist one’s decisions on a regular basis. Feel free to follow Ivan on Twitter & Youtube.
The Aussie and to a lesser extent the New Zealand Dollar, were the best performers, followed closely by the Euro. It was a bit of a disjointed affair, as even the JPY performed relatively well against its peers despite the persistent rise in equities, taking the S&P 500 as our barometer (up 0.6%). The Sterling succumbed to the lack of progress between the UK govement and the DUP to be able to re-table the divorce deal. Meanwhile, the Canadian Dollar remains under clear sell-side pressure amid a substantial deterioration in the Canadian bond yields, now inverted up to 10y. The USD traded mixed for the day awaiting further stimulants.
The rampant mood in equities has continued to build up, taking the S&P 500 into new yearly highs as technicals in what remains a fairly well structured and orderly bullish stepping formation dynamics. The micro and macro slopes are reflective of a market in buy-only mode. When it comes to US yields, the long-dated 30-year is going through a period of very low vol after finding a floor circa 3%, with the low activity leading to the micro and macro slopes tuing more flattish ahead of the FOMC. Meanwhile, the DXY appears to have found enough buying interest to potentially setting up a short-term range as it attempts to recovery off 96.40, allowing the micro slope to revert back to neutral terrain. Overall, the current market conditions are still best defined as USD weakness in a context of risk appetite, but be aware that we really are in a holding patte ahead of vol events later this week.
EUR/USD: Hourly Bullish Cycle In Place
GBP/USD: Trapped In A Range Until New Catalysts
USD/JPY: Testing A Key Ascending Trendline
AUD/USD: Hourly Bullish Trend Still Underway
USD/CAD: Range-Bound Conditions Amid Lack Of Catalyst