Is The Wait Over?
Ridhwan Rosli
Business Development Manager - APAC Region @ Weltrade Ltd. Global Strategic Partnerships | Global Macro Sense
A very good morning and Happy TGIF to all readers as we look towards the start of trade in Europe this Friday.?
Macro Update: US Inflation print came in during the overnight US session softer than expected dropping to a whopping 7.7% from the expected 0.2% drop to 8% from its prior month’s reading. This undoubtedly will fuel further pricing in of the Fed’s commitment to begin reducing the size of hikes that have stayed at 75 basis points so far. US Equity futures edge higher post the data release and Asian stocks followed suit with a soft rally overall as the DXY looks set to end the week shaving off 2% off its high print.
Energy & COVID: WTI Crude gained on-session as a softer CPI fueled further dollar weakness but is still set to close the week out sharply lower as demand concerns linger. I stand by my hypothesis yesterday that barring any further changes, this market has priced in a significant portion of these macro drivers, and it is only a matter of time before a weaker dollar and output cut from OPEC+ starts taking the driver’s seat in pricing. Fresh covid figures out of China remind a significant downside risk to remain vigilant of as cases top 10,000 - the highest in over a year.
Day Ahead: US GDP Growth and Michigan Consumer sentiment Prelim figures set to hit the tape to close out what has been a positive turn in markets. The mood seems to be positive going into the start of cash equity trade in Europe and it does bode well for further positive activity regarding risk sentiment will continue to get priced in before the week is through.?
As always, “Trading is Waiting and Waiting is Trading”. Have a brilliant session ahead and stay safe out there. This was - Your Morning Reed.
领英推荐
Sources: Trading Economics, Bloomberg, RTRS, MacroHIVE, FX Street, Earnings Whispers, Bloomberg LAW, Seeking Alpha, MarketWatch, CNBC, Yahoo Finance.
Disclaimer: This piece is for information purposes ONLY and not meant as trading/investment advice. Trading futures carries with it inherent risks and is done so at your own risk.