Today’s economic docket lines a number of high impact data namely EZ and German GDP, US Advance Retail Sales and US Michigan Consumer Sentiment. Thursday has been a pretty nasty session for the major equity indices with sentiment largely moribund and oil prices testing new lows.
On Friday oil prices staged a bit of a rebound with analysts attributing the change in direction to talk of possible OPEC talks or simply a technical correction.
In the currency markets the USD so far managed to break 4 consecutive days of losses as the DXY takes a breather and moves to the current 95.57 after hitting lows of 95.27 yesterday. Yesterday the Fed chair Yellen concluded its two day testimony and the USD is expected to close the week largely in the negative.
EURUSD moved to highs of 1.1376, levels last seen in October and although we might see a small pull back towards 1.1222:1.1272 zone it is expected to resume 1.13 levels later in the day. The largest setback for the USD was against the JPY with the USDJPY hitting weekly lows of 110.96 after opening the week at 116.77. The JPY enjoyed safe haven support in the midst of the week’s sell-off and volatility, even Gold enjoyed significant support.
Overall sentiment has remained predominantly negative in Asia with concerns stemming from the financial sector as banks have to face low-interest rates scenarios and scaled-back global growth and the banks sell-off.