Macro: Sandcastle economics
Invest wisely in Q3 2024: Discover SaxoStrats' insights on navigating a stable yet fragile global economy.
FX Trader, Loonieviews.net
The US dollar is bid. It stayed that way despite a mixed US durable goods orders report, a rise in US wholesale inventories for May and a big drop in MBA mortgage applications data. That’s because traders have trade on their minds. The headline durable goods number of -0.6% was better than the -1.0% that was forecast.
The White House appears to have backtracked on a plan to bar Chinese companies from investing in US technology firms, first reported on Sunday. They are now planning to use changes in the Committee of Foreign Investments in the United States to review investment decisions.
Wall Street liked the change in tone. The Dow Jones Industrial average opened above yesterday’s closing rate of 24,252.80 and climbed to 24,380.54 in early trading. The S&P 500 traded as high as 2732.91 after closing at 2717.07. Prices are still well below the month’s peak levels.
WTI oil prices jumped to $71.85/barrel after opening this morning at $71.15/barrel. Traders are expecting that today’s Energy Information Administration weekly crude oil stocks change data will report a similar drawdown as the American Petroleum Institute’s report showed yesterday afternoon, (-9.228 million barrels).
USDCAD retreated from its intraday peak of 1.3325 and is hovering around support in the 1.3280-90 area. Traders are patiently waiting to hear from Bank of Canada governor Stephen Poloz, who is holding a press conference after a speech in Victoria B.C. It is slated for 2000-2030 GMT.
EURUSD dipped to 1.1552 after opening in New York at 1.1648. The modest improvement in the headline durable goods number contributed to the slide. This morning’s break below the intraday uptrend at 1.1640 argues for a steeper drop to 1.1510 if 1.1580 gives way.
Disclaimer
The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.
Please read our disclaimers:
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
- Full disclaimer (https://www.home.saxo/en-gb/legal/disclaimer/saxo-disclaimer)