Market Wire Update:
Absorbing The Central Banker Chatter
Ahead of the Bank of Canada rate decision and statement at 09:00 EST the global markets are holding currency pairs in a very tight range. We will signal the cad potential nearer the time. Outside of Usd/Jpy, that has dropped back to pre-NFP explosion levels at 88.50, there really is very little going on. There are four rate decisions this week, from Canada today, New Zealand on Wednesday, and then from Switzerland and the U.K. on Thursday. In between the market absorbs a lot of central banker chatter in the form of speeches from those who sit above, and that jawboning can create volatility in finding fair value.
Every major pair is now battling a main Daily chart simple moving average of one kind or another, and all have the same pattern that they entered December with; a sideways crawl that outside of the NFP last Friday, offers little potential. We have an Aud/Usd signal out there, and feel comfortable in the Options play on it that buys time to allow things to develop and follow through. The near-term spot market volatility is brutal, especially for a market going nowhere, and Options take away the noise.
Macro View:
Very mixed global trade, with no momentum and no volume. Equity futures look comfortable with S&P holding 1095 support overnight, and now trading at the 1105 swing point. Gold found buyers at 1055, and we are now looking to break either 1175 going long, or 1135 going short. The crude oil markets are a mess, they really are, with 72.50 as main support. In all, no signals are forming that the market needs to move anytime soon.
