Overall there is strength in the USD, CHF, and JPY. Weakness in the AUD, CAD, EUR, and NZD with minor weakness in GBP.
Oil prices snapped four days of gains and fell as much as 7%. Nymex crude oil futures dived 6.6% to $53.43 a barrel, the lowest since October 2017.
USD rebounded on Tuesday as official data showed that housing starts picked up in October. The ICE Dollar Index climbed 0.7% on day to 96.82.
USD/JPY is trading higher in Wednesday's Asian market window, sticking close to the 112.90 level as the US Dollar remains well-bid for the mid-week inflection point.
AUD/USD has shed value as broader markets opt for the Greenback instead of the risk-exposed Aussie, and risk-off flows see the pairing challenging the 0.7200 handle heading into Wednesday's market action.
GBP/USD is trading sideways ahead of Wednesday's London market session, skidding across the floor near 1.2785 after Tuesday saw a resurgence of the Greenback across the broader markets, as well as a revival of Brexit-bearish headlines.
EUR/USD sank 0.7% to 1.1372. Media reported that the European Commission will take the first step towards disciplining Italy over its budget plan. As long as the previous swing high at 1.1415 is not surpassed, intraday negative outlook remains with down target at 1.1300. Alternatively, only a break above 1.1415 would trigger a rebound with 1.1470 as target.
On Tuesday, the sell-off in technology shares continued, with the tech-heavy Nasdaq Composite plunging another 119 points to 76908. The Dow Jones Industrial Average tumbled 551 points to 24465 and the S&P 500 shed 48 points to 2641. All three indices wiped out all of their gains so far this year.
On the data slate there’s UK Public Sector Net Borrowing; UK Central Government NCR; UK Public Finances; US Mortgage Applications; US Durable Goods Orders; US Initial Jobless Claims; US Continuing Claims; US Leading Index; US Existing Home Sales; US U. of Michigan Sentiment, Current Conditions and Expectations; US Crude Oil Inventories and US Baker Hughes US Rig Count.
Today Trading Plan
SELL EUR/USD @ 1.1375 OR BETTER – STOP @ 1.1435 – TARGE T @ 1.1300
SELL GBP/USD @ 1.2800 OR BETTER – STOP @ 1.2870 - TARGET @ 1.2710
BUY USD/JPY @ 112.65 OR BETTER – STOP @ 112.00 – TARGET @ 113.25
SELL CL1218 @ 54.30 OR BETTER – STOP @ 55.00 – TARGET @ 53.20
SELL AUD/USD @ 0.7240 OR BETTER – STOP @ 0.7310 – TARGET @ 0.7170
SELL XAU @ 1224 OR BETTER – STOP @ 1229 – TARGET @ 1205
SELL XAG @ 14.40 OR BETTER – STOP @ 14.90 – TARGET @ 13.50
investing considerable time and effort up front in
hopes of substantial returns down the road.
