Correlations also breaking down….AGAIN. Dollar weaker not triggering risk trades.
After the anemic non-Farm Payroll (NFP) in the USA with revisions to the two previous months, risk assets have an opportunity to break through recent resistance.
Today’s headlines on Greece are NOT in the market’s volatility range or where equities should feel comfortable at this level.
Europe remains a tradable rally that has basis in fundamentals and momentum.
The euro is finding a toe hole on speculation that the new Greece government may soften its stance and work with international creditors.
Emerging Money Daily Audio Call for January 23 2015.
The spot price of crude oil pushed higher in the news of Saudia Arabia King Abdullah’s passing. The bulls are speculating on a shift in Saudia Arabia’s policy of letting crude prices to fall.
The European Central Bank (ECB) exceeded expectations (so rare in life) with their monthly 60 billion euro asset purchasing until Sept 2016 and an open ended loaded bazooka in their pocket.
As we move into the final stretch of the first week of June, market participants find U.S. economic reports at best mixed. ADP Jobs numbers fell short of expectations (179k vs, 210k) and analysts are now wondering when we are going to see stronger recovery numbers.
A look at the chart of the DXY shows the Dollar basket kissing the lows of Feb ’13 and testing all the way back to levels that were established in early 2012.