Market’s risk-off mood recedes ahead of key data/events

Although the easing in yields and the US dollar allowed equities and commodities to pare recent losses, the global markets remain nervous as central banks remain hawkish and stay ready to intervene if needed. Global traders took a sigh of relief as yields retreated from the multi-year high, taking the US dollar with it. The consolidation phase also cheered the BOEs rejection of intervention while paying little attention to the BOJ and the PBOC moves.

On the same line are the recent softer US statistics and inflation expectations, weighing on the USD Index at the 20-year high.

The greenbacks weakness allowed commodities and Antipodeans to pare the latest losses amid a light calendar and cautious mood ahead of the US CB Consumer Sentiment and Durable Goods Orders. Gold bounces off a two-year low while the USDJPY retreats around its 24-year top. Further, GBPUSD also licks its wounds at the all-time low whereas oil prices recover from the eight-month low.

Below are the latest moves of the key assets:

• Brent oil rebounds from an eight-month low, up 1.4% near $85.00 at the latest.

• Gold picks up bids towards $1,645 resistance while printing 0.90% daily gains at the latest.

• USD Index retreats to 113.50 after refreshing the multi-year high to 114.52 on Monday.

• DAX, Eurostoxx and the FTSE are all printing mild gains as we write.

• Wall Street closed in the red led by the Dow Jones 1.11% daily loss.

• BTCUSD rises to a fresh two-week high near $20,000 while ETHUSD adds nearly 4.0% to around $1,385 by the press time