Markets seemingly paused, with the major US equity indices closing in the red yesterday as performances showed some hesitation in taking the Trump election rally forward. Even the US Dollar index (DXY), an index that measures the of the USD relative to a basket of foreign currencies, has showed some signs of consolidation after hitting highs of 102.05 last Friday – levels we had last seen in March 2003.
The euro’s attempt to take an advantage as the USD starts to show some signs of hesitation after its massive rally, failed to take the EURUSD any higher than 1.0685 yesterday and the currency pair is currently re-testing 1.0600 levels again.
Oil has been tampering investor mood as volatility kicks in ahaead of an upcoming meeting next Wednesday, were the major producers will try to reach an agreement on the output cuts.
On today’s economic docket the high impact data starts early afternoon with the German CPI for November and later in the afternoon we also have US consumer confidence for the same period.
Remember we’re up for some headwinds as we approach the 4th December referendum in Italy in which PM Renzi risks having to lose his seat and create further instability in the EZ. Later this week we have the NFP data out of the US were one can also expect range trading and volatility ahead of these major events.
