- Markets are awaiting the release of crucial US economic data today, firstly Advance GDP data which is expected to show a quarterly decline in its annualized rate from growth of 2.6% to 2.0%, secondly Unemployment Claims data. If the GDP data is much worse, it could see a strong weakening by the USD over the rest of the day.
- The cryptocurrency Bitcoin is showing an increase in volatility and renewed bullishness as its price rises quite strongly, suggesting we are likely to see another test of the crucial area of resistance which had already made a mark around $30k.
- In the Forex market, the US Dollar is consolidating within its long-term bearish trend. Trend traders may be watching for a new short trade if confirmed by a renewed weakening in the greenback, probably looking to be long of the EUR/USD or GBP/USD currency pairs, both of which are in confirmed long-term bullish trends, with the EUR/USD looking more reliable as it is so close to its long-term high. Over today’s Asian session, the New Zealand Dollar has looked like the strongest major currency, while the Japanese Yen was the weakest.
- Several soft commodities are performing well, with the Sugar ETF CANE and the Cocoa ETN NIB reaching new multi-year high prices over recent days.
- Stock markets have been mixed over the past day, with Asian equity markets looking weak, especially in China where the Hang Seng Index has had another down day.