SGX Nifty 50 Index futures rallied as much as 2.6% as exit polls predicted a majority for the Bharatiya Janata Party and its allies after the nation’s six-week-long general election ended Sunday. The rupee, Asia’s top performer in March, has slid 1.6% this quarter as escalating trade tensions roiled global markets.
Professional currency money managers just like most hedge fund managers, follow “The Herd Theory”. So when one starts to exit shorts aggressively, others tend to follow first then ask questions later. Therefore, we expect to see a solid short-covering rally over the near-term.
Over the short-run, the AUD/USD could get a boost from the election results, but gains are likely to be limited and prices could fall further because of the weakening economy and the expected rate cut.
Last week’s price action strongly indicates the U.S. Dollar is the biggest influence on the direction of gold prices. Gold prices could continue to get crushed if demand for the greenback rises from a combination of safe-haven demand and a strengthening U.S. economy.
The Australian Dollar now has the dubious honour of being the worst-performing G10 currency so far this month, in the leadup to its federal elections on May 18.
Australian Federal Elections go the way of the Aussie Dollar, with Brexit, EU elections, stats, and trade war chatter in focus in the week ahead.
Investing.com - After a week dominated by escalating trade tensions between the U.S. and China the trade war looks likely to remain to the forefront of investors’ minds, but this week will also feature Federal Reserve minutes, U.S. retail earnings and economic data as well as European Union elections.
Crude oil was supported primarily by worries over a possible supply disruption amid physical attacks on Saudi Arabian assets and US-Iran tensions. Natural gas rose as late spring/early summer heat became a new concern. Gold traders were burned by chasing headlines as the dollar regained strength on improving U.S. economic conditions.
The U.S – China trade war continued to grip the markets and, while the China economy showed cracks, U.S stats impressed.
Moody´s de México, ("Moody´s") has affirmed the B1 (Global Scale, local currency) and Baa3.mx (Mexican National Scale) issuer ratings of the Municipality of Ecatepec de Morelos, and changed the outlook to stable from negative. At the same time, Moody's affirmed the debt ratings of the municipality's MXN 250 million enhanced loan from BBVA Bancomer at Ba1/A1.mx.
Based on the early price action and the last price at $1276.30, the direction of the gold market the rest of the session is likely to be determined by trader reaction to a pair of Gann angles at $1278.30 and $1280.20.
Moody's de Mexico S.A. de C.V. withdrew the Ba3/Baa1.mx (Global Scale, local currency/Mexico National Scale) issuer ratings of the Municipality of Cuautitlán Izcalli and also withdrew the negative outlook. At the same time, Moody's de Mexico withdrew debt ratings of the MXN 200 million loan (original face value) with BBVA Bancomer of Baa3/Aa3.mx (Global Scale, local currency/Mexico National Scale) and the MXN 75 million loan (original face value) with Interacciones of Baa2/Aa2.mx (Global Scale, local currency/Mexico National Scale).
Robust growing USD Index pushed down all its major rivals. Hence, EUR/USD pair plunged despite positive Euro-specific data. Meanwhile, the Cable continued to douse in fall amid Brexit chaos.
Gold markets initially tried to rally during the week, slamming into the $1300 level. However, we were repelled there rather quickly, and then turned around to fall rather precipitously. With this in mind, this is not a good look for gold.
Gold markets fell rather hard on Friday, crashing into the $1278 region which is where the 200 day EMA is. Because of this, it looks like we are going to make a serious test of the $1268 level, an area that has caused the lot of support in the past.
The US dollar initially fell during most of the week, but since then we have gone back and forth on the daily charts to form a bit of a zigzag on the way back to the highs. Adding more interest to the market is the fact that we are forming a weekly hammer.
The British pound initially tried to rally during the week, but then broke down almost immediately, leaving the 1.30 level in the rearview mirror. After that, we have broken down below the 1.28 level, and now things are looking rather ugly.
The British pound fell rather hard during the week and a lot of risk aversion when it comes to the Brexit. This of course makes quite a bit of sense, as the political situation with Theresa May looking very likely to retire has a lot of questions attached to it.
The Euro drifted a bit lower during the week, after initially trying to rally. That being the case, it looks as if the negativity continues in this market, as the Euro has been beaten down a bit over the last several months. That being said, it’s been a real grind so collapses that necessarily in the cards.
The Australian dollar has had a very rough week, as we are looking very likely to test the lows of the range of support that I have been talking about for some time. In fact, we are closing towards the bottom of the candle stick which is a very bad look to say the least.
The US dollar fell a bit during the trading session on Friday, as we continue to see a lot of noise against the Japanese yen. This makes sense, because there’s a lot of noise coming out of the US/China trade situation, and of course the Japanese yen is an extraordinarily “safe currency.”
The British pound got absolutely hammered during the trading session on Friday again, as we continue to see a lot of concern around the Brexit. This is a markets are reacting to the potential resignation of Theresa May, and the unknown after that.
After bitcoin's hot start to May -- the world's largest crypto currency by market cap is giving back quite a bit of ground. Yahoo Finance's Zack Guzman & Jeanie Ahn, along with Flat World Partners CEO Anna-Marie Wascher discuss.