Up until now almost all of the euro crosses have been stuck in strong bearish trends – especially the commodity crosses. However in recent weeks we have seen some interesting bullish patterns develop on the likes of the EUR/AUD, EUR/NZD and EUR/CAD. Whether or not these patterns develop into anything significant remains to be seen. But for the time being they all point to a potential bounce of some sort.
Crude oil prices are rising even as oil rig counts grow to the highest levels since last April and U.S. production topped nine million barrels a day. It seems that OPEC cuts and the lingering impact from major capX cuts is giving the market some support. As the Energy Report predicted, OPEC/non-OPEC compliance is at an all-time record high and we are the only source that I am aware of that predicted this outcome.
The one market that is on the move today is arguably the most important market of all: the U.S. Treasury market. There's an old trading axiom that the bond market attracts the "smartest" traders, so it's always worth monitoring closely. Based on what we're seeing in the benchmark 10-year bond yield, bond traders are showing signs of shifting into a more defensive posture.
Gold and silver have risen for the third straight day and both precious metals look set to close the week higher. Over the past nine weeks, gold has risen on eight occasions. Silver meanwhile has risen in each of the past nine weeks.
Global stocks have repeatedly hit record highs, there remains some skepticism over the sustainability of the rally with a selloff on the table if Trump fails to deliver his market shaking tax cuts and fiscal policies.