Market Commentary
USD goes into defensive mode as dovish sentiments are confirmed. Piece by piece the 2 strong foundations for the Dollar move are starting to look shaky - that being a) a strong economic data base to support the sentiment that vibrant economic growth ignites benign inflation and interest rate rises, and b) the sturdy belief in the market that the Fed had penciled in this June 15 as the first month to begin raising interest rates. Both pillars are now under attack and it remains to be seen how the Dollar trade fares with the weaker and recent market longs running for cover. The Grexit drama on the wane adds further pressure on the Dollar viz a viz the EUR. With the approving today a 68 billion euro ($78 billion) package for a 2week extension on emergency liquidity for the Greek banks, step by step the ECB is consolidating consensus and a middle ground is helping the currency to stabilize at the 1.14. Whether the ECB approves the mooted 6 month rescue package remains to be seen in the next 2 days. Crude oil benchmark WTI slips today on the fears that the US economy will slow down. A recent report on Bloomberg on the Baker Hughes report on rig cutbacks http://www.bloomberg.com/news/articles/2015-02-18/the-hot-new-statistic-oil-traders-are-looking-at-is-71-years-old suggests that the large cutbacks in rig deployment translates into slowing production and loss of jobs. According to the report - "The slide in prices has sidelined 480 rigs within two
months, erased tens of thousands of jobs and cut hundreds of
billions of dollars in spending." This data is stirring further reasons for underlying support of crude oil at the 50's region as economic fundamentals of demand and supply work out in consequence to all the speculation that forced prices down in the first place. Gold doesn't seem to attract major interest yet and is stabilizing at the 1200 mark.
US DX
94.079 -0.024 -0.03%
Support 93.729 Resistance 94.889
EUR
1.14007 -0.00096 -0.08%
Support 1.12980 Resistance 1.14620
Crude Oil
51.22 -1.60 -2.96%
Support 48.87 Resistance 55.05
Gold
1211.905 +3.820 +0.32%
Support 1,187.4 Resistance 1,219.8
Pieter Bergli - DeLoren Trust Holdings
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