Weekly Overview – VIX Touching Lowest Levels Since 1993

▸EUR-pairs experienced initial gains on the backdrop of the French elections, but the “buy rumour, sell fact” sent the European common currency on the offer along with European equities in the beginning of the week. Trend resistance in EURUSD still intact.

▸The Greenback gained overall last week, but disappointing inflation figures and retail sales coupled with concerns over Trump dismissing FBI Director Comey sent USD-pairs offered going into the weekend. Better than expected Michigan Consumer Sentiment limited some of the losses, but market players could reposition ahead of the FOMC meeting in June towards a more hawkish Fed.

▸This week, as the political scene is calm for now, markets should turn back towards the macro data to be released – US housing data along with EZ CPI should attract market attention.

▸Commodities and precious metals pulling back after selling off heavily – oil on the bid on talks of Saudi and Russia backing a longer term cut in supply.

▸Volatility has come off quite significantly with VIX touching lowest levels since 1993. FX volatility also at lowest levels since 2014.

Read more here:20170515 – weekly

Get market updates on your email by subscribing to T1 MarketScope weekly newsletter

Share This Story, Choose Your Platform!