STATE OF THE MARKETS

Equities mixed in waiting for Feds. Global equities closed Monday on mixed tone as broader markets await the Federal Reserve monetary decision this Wednesday. S&P500 (+0.18%) broke record high, Dow (-0.18%) edged lower, and FTSE100 (+0.35%) was up, while Nikkei (-0.19%) looking to complete a head and shoulder formation. The benchmark US 10Y yields settled higher around 1.57% after some parts of markets expect Feds to signal a tapering policy later this year.

Crude futures was under selling pressure, dropped to as low as $60.66/bl, as markets concerns about covid situation in India worsen; before dealer stepped in and bid up the black gold to closed around $61.91/bl. Gold inched higher, around $1,780/bl as markets battled with inflation and yields ahead of Feds meeting.

In the FX space, BoC recent rate signals, saw Loonie seized the helm of demand in the short to medium term accounts. King Dollar remains in the back burner over the long term, albeit mixed in the short and medium term, with the Swiss and Yen. Aussie and Kiwi are all over the place, while Euro gained ground over Sterling for the medium and long term accounts. Sentiments were mixed.

OUR PICK – EUR/GBP

Riding on block orders. FX sentiments showed that long and medium term EUR/GBP is gaining a bullish momentum and about to turn around as evident in the inverted head and shoulder. Recent rebound was mostly profit taking and capped by 61.8% fib channel. A block orders of $82.8 million was recorded Monday in the futures market and we intend to ride that orders with 0.8730 stop for a short term as the medium and long term look bullish for now.

Disclaimer:

This article is for general information purpose only. It is not an investment advice or a solicitation to buy or sell any securities. Opinions expressed are of the authors and not necessarily of MFM Securities Limited or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.