Risk-on coming back? What the AUD might tell us here

Important news for the day

• Thu, 08th, 14:30 CET US Unemployment claims.

Equity markets

During the Asian session stock markets were able to regain ground again. Yet at the beginning of the European session markets started weaken further. The Nikkei shows negative sentiment and also US indices offer slight negative potential. The current path of rate adjustments by the Fed might be the key trigger for such moves as the economy weakens. JPMorgan believes that there is a 35% chance that the economy falls into a recession this year. Today’s unemployment claims from the US might give further insights into the situation. Oil prices, however, remain positive and gear up steam on top of the current support area.

Market talk

The Dollar shows mixed pictures against other currencies. While the EUR is able to gain against the Greenback, the AUD shows moderate momentum and the GBP falls further. Alarm signs might come from the equity sector, though. Currently the S&P 500 shows potential for falling prices and the VIX (volatility index) starts to rise again. Further losses might be on the cards, which is also confirmed by the AUD trading rather sideways. The JPY is losing some steam for now but might also start to strengthen further after this.

Tendencies in the markets

• Equities sideways, USD mixed, cryptos positive, oil positive, metals sideways, JPY weaker.