- Stocks Markets: Overnight, Stock markets in the US and Asia closed in the red which suffered to due lower oil prices. In fact price for Brent is at lowest since 1 month. The elevated risk aversion has strengthened JPY which is at its highest in 17 months versus the USD.
- OIL and GOLD: The risk averse environment has helped GOLD boost to $1226 from $1214 yesterday. Gold which moves inversely to Stock markets, has dropped last month on the back of renewed investor confidence that rates in the US will stay low quite long, which would strengthen the stock markets appeal and lessen it for GOLD as an alternative investment. OIL prices are under renewed pressure after speculation that Saudi Arabia will not join any output Freeze. OIL which rebounded from $28.80 lows in February and reached a peak of $42.00 is trading now at $35.55
- Currencies: Besides JPY Strengthening to its 17 month high, other movers are commodity currencies such as NOK and CAD which move in tandem with OIL prices. Yesterday was a quiet day for currencies which are waiting for the new X factor to show a direction. With ISM news as well as UK PMI this afternoon, it is unlikely that the markets will move on these news, so trading is likely going to be more technical than based on fundamentals today.
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