Weak ISM and tightening bets spark market reversal and tail risks
|Yet another S&P 500 intraday reversal higher that fizzled out, in premarket already – but weak ISM would rescue the buyers for a while again. Triggering bets on the Fed to step back from the tightening campaign (of course a misguided notion), there are signs markets are positioning for such an outcome – gold has erased half of yesterday‘s setback already, and EURUSD is catching a bid the more the data release approaches.
So, get ready for a risk-on reprieve that won‘t change the adverse liquidity circumstances as since the debt ceiling was solved once again, the Treasury issued almost $600bn of fresh debt. Together with monetary tightening effects slowly making their way through the system, this increases tail risks to the downside over the coming weeks if not months.
Today‘s analytical intro is brief,as I‘m going to dive into many market charts. Thanks for the warm reception of the daily and intraday Youtube updates – you‘ve got plenty to look forward for!
Let‘s move right into the charts – today‘s full scale article contains 5 of them.
Gold, Silver and Miners
Precious metals would be today‘s beneficiaries and rise vs. their opening values, but the correction isn‘t over yet at least in terms of time.
Crude Oil
Crude oil hasn‘t found strong footing yet, but will also benefit from the ISM figures and rise back above $68.
Copper
Copper also obliged lower in line with my yesterday‘s call, just as precious metals did. Growth worries are hitting home here as well, and today‘s steep decline will be partially retraced on the Fed tightening bets temporary reappraisal.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.