Greg McKenna | Mar 28, 2017 10:49
Originally published by AxiTrader h2 Key Takeaway/h2
You would have been forgiven for expecting a pretty poor performance in the US last night based on Asian and European trade. But for the umpteenth time in the past couple of years – let alone my career – Monday Asia got the wrong end of the stick.
So the US dollar, stocks, and bond rates, are all off their lows this morning.
What seems to be going on in US stocks is that president Trump is being given the benefit of the doubt that he will be able to deliver on tax and infrastructure. But as I have written also this morning the Trumponomcs rally retains its fundamental underpinning in a dataflow which is still printing better than expected.
At the close, stocks are down, but not as much as they were. The US dollar is weak, but off the mat. And bonds are cautiously bid at both ends of the curve.
As a result the US Dollar Index is at the bottom of the recent range, euro traded to 1.09 last night, GBP/USD touched 1.26, the yen traded into the low 110’s and the Aussie – well the Aussie is lagging because this is not a good environment for it.
On commodities copper and oil bounced from their lows – nicely. And gold has failed to hold above the 200 day moving average again -even though at $1255 it’s elevated in price.
h2 What You Need To Know (with a little more detail and a few charts)/h2
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