STATE OF THE MARKETS
Dollar sliding lower ahead of NFP. While all major US indexes, from Dow (+0.37%), Nasdaq (+0.14%) to S&P (+0.28%) marching higher to record territories, the Dollar (DXY) has been sliding all week to nearing 92 handle as of this writing. Bad ADP data, declining PMI but better jobless claims on Thursday, now awaits NFP figure on Friday, seemed to signal that Fed’s options are limited as the best treasuries yields are not even half the inflation rate.
In the commodities market, crude surged to as high as $70.60/bl after EIA reports pointed to more than expected reduction in the US inventories. The black gold settled around $70/bl as New York closed. Gold was little changed, continuing in a tight range of $1,821.50 – $1,807.20/oz as investors gauged new data ahead of the employment reports Friday.
In the FX space, Kiwi seized the helm of demand across all horizons, alongside Loonie and Aussie, while Dollar retained the second seat in the long term accounts. Short and medium term accounts however, had sent Dollar all the way to the back burner. Short and medium term demand points to lower EUR/GBP rate, a sign of optimism, as the market awaits for NFP Friday.
G8 CURRENCIES SENTIMENTS
** ST refers to Short-Term daily turnover, MT is Medium Term weekly
and LT refers to Long-Term monthly turnover.
WALL ST MOST ACTIVE
|VOLUME||90 DAYS AVG|
** % Change here refer to price
WALL ST TOP FLOWS
|% CHANGE||FUNDS FLOW $|
** % change here refers to volume
TOP 5 BLOCK ORDERS
|SYMBOL||PRICE / STRIKE||TYPE||VOL/OI||FUNDS FLOW $|
|CL||68.40 – 70.55||crude oil futures||6,875||479.8M|
OUR PICK – No New Pick.
No new pick going into the weekend. Not that often we see a week of outflows from the US equities (-$5.7b) and foreign equities (-$750m) plus another outflow from money markets (-$20.1b); while all taxable bonds only report an inflows of $5.3 billion. This could only mean that the outflows are sitting ducks, which is highly unlikely, and/or funds are flowing into commodities, whatever the commodities maybe. If such is the case, then we should see change in the commodities flow. Top 10 commodities may have a temporal change of ranking as a result, as investors took advantage of any pullback.
Trades updates: We are accumulating AUY as the stock now pays dividends yielding 2.81% at current price, we remain bullish T and will accumulate as dividends yields now at 7.53%, we remain bullish COG and will accumulate as dividends yields now at 2.54%, we remain bullish CLVS, VIPS, GT and CRON while bearish GE. USD/CAD has hit medium term first target and XAG/USD is working as planned after NFP sent a signal of dovish Dollar. (Note: GE’s dividend yield is at 0.30% and CLVS, VIPS and GT currently does not pay any dividends)
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