Daily Morning Call
From the Floor: Forex seeks direction as equities bleed —#SaxoStrats
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The second quarter is off to a very weak start after equities, particularly the tech sector, threw a collective tantrum, undermining sentiment and triggering a nervous risk aversion across other assets. But the response so far in the forex market is mild, even if the market is left struggling for a catalyst.
- Tech sector sends global equities reeling
- Risk off: very little spill-over into FX – mild EM weakness, JPY strength
- Forex struggling for a catalyst as USD is pulled in two directions
- Big few days ahead for data, including PMIs and nonfarm payrolls
- Lots of negative headlines for the likes of Tesla, Amazon, Apple and Intel
- Trade tensions and tech rout current drivers for key commodities
- Range-bound WTI oil targeting $60/barrel
- Underlying demand for gold remains firm ahead of $1300/oz