Market News & Blog
Silver had a choppy day and in the medium term continues to gyrate between 15.60/16.20. The daily and weekly charts are mildly conflicting, suggesting that we may be in for more of the same and that there are probably better things to look at.
The major Asian stock indices are all higher this morning, led by the Chinese CSI 300, which is up more than 1% on the day. Oil and precious metals have consolidated in a tight range in the Asian session.
Equities climbed strongly higher once more on Friday, as did the US dollar, which remains underpinned by last week's central bank activity, most notably from the ECB, the PBoC and the BOC.
Equities soared again heading into the weekend after China unexpectedly cut interest rates, and were also assisted by several of the large-cap U.S. technology companies (Alphabet, Amazon, Microsoft) reporting better-than-expected quarterly results.
The Euro fell sharply yesterday after ECB President Mario Draghi said that the central bank will consider an adjustment of the current quantitative easing (QE) programme at the December meeting.
Drawdowns are inevitable. Every trader will have from time to time a losing streak, but if handled properly, it should not be a major obstacle for anyone.
The day ahead will be all about the ECB Interest Rate Decision. While no change is generally expected from the ECB an easing of monetary policy is still possible.
Asian equity markets are mostly higher on the day, led by the Nikkei, which gained 1.25% on the day. Hong Kong markets were closed today for a public holiday.
The current session has again been rangebound for most currency pairs although the Euro did briefly see a squeeze to the topside after the ECB was mildly positive in its latest bank lending survey.
The main event overnight was the release of the RBA meeting minutes. There were no surprises from the minutes and it seems likely that, near term, there will be no changes in the RBA's monetary policy.