Global stock indices were onto another strong session which lasted all the way to the North American opening bell, with Nasdaq, S&P 500 and the Dow Jones all opening strongly before giving up all their gains, reacting at key technical levels.
Read More: Dow Jones and major US indices drop from key levels – Technical Outlook
In other asset classes, the picture is not less confusing: Cryptocurrencies, traditionally seen as risk-assets are performing strongly with ETH dragging digital asset sentiment higher.
On the other hand, commodities still show hesitancy in sentiment with Gold just breaking $3,400 and Oil breaking $64.
For those who did not know, the Bank of England provided a hawkish cut after two votes – The first one showing a tie between a 25 bps or unchanged, and the second one leading to an actual cut from 4.25% to 4%, pushing the Pound higher.
In geopolitcs, Benjamin Netanyahu announced the total control of the Gaza Strip while mentioning that Israel would then look to hand its reign to neighbouring Arab governments.
Spot the effect of the hawkish cut towards the GBP daily outperformance.
After a weak start, the US Dollar seems to have found a floor – It will then have to be confirmed whether this floor is temporary or provide actual support to the ongoing downfall
For the rest, the currency board isn't less confusing with The Kiwi second on the board which would have marked a risk-on FX picture if it wasn't for the Yen actually showing some form of strength (up 0.25% against the USD).
Tomorrow's main event will be the release of the Canadian Employment number which may finally provide some independent movement for the Loonie.
For technical levels in USDCAD, I invite you to check our mid-week NA Markets analysis.
Of course, don't forget the University-of-Michigan Inflation expectations releasing at 10:00 A.M. ET.
