A counter-trend risk off mood has taken hold in the market, sinking stocks and other risky assets.
- Risky assets are sinking as a sourer mood takes hold in the market.
- Precious metals are lower (except Palladium) and well off yesterday's highs, when this asset class was looking very bullish. Gold was trading well below $4,300 towards the London open.
- Stock markets are lower, with the S&P 500 Index notably trading below 6,800.
- Bitcoin has broken below a former key support level below $88,000, but may be finding support at about $85,000.
- The US Dollar is approaching a 2-month low.
- Commodities are mostly lower, with WTI Crude Oil approaching a 7-month low.
- The Japanese Yen is strengthening, which is typical in a bearish market environment.
- In the Forex market, action has been dull since the Tokyo open today. The USD/MXN currency pair is testing very long-term lows, having reached a new 17-month low just now. Many Forex brokers pay positive swap on short positions, which could make this an attractive carry trade.
- There will be a release of Canadian CPI (inflation) data today, which is widely expected to show a small month-on-month increase of 0.1%.
- I doubt there are any good trades in the market today, but tomorrow will see the first release of US Non-Farm Payrolls data in several months, and this could bring directional changes in the market and add volatility too.