STATE OF THE MARKETS
Risk-off fueled Dollar rally. Global equities were rattled Monday after news hit the wires that China’s Evergrande might default on billions of debt that could spill over in global bond holdings. Major Index from Nikkei (-1.81%), HangSeng (-0.32%), FTSE100 (-0.86%) to Dow (-1.78%), S&P (-1.70%) and Nasdaq (-2.19%) all ended in red after buyers were spooked ahead of Fed’s FOMC statement on Wednesday. Dollar rallied close to the 92.50 minor handle as the 10Y benchmark fell to 1.31% at New York close.
In the commodities market, crude fell for the third day, but remained above $70/bl, after Dollar’s strength pulled the commodity down. Fears can be sensed in the markets as gold rebound on safe-haven buying and the precious metal closed above $1,760/oz despite heavy demand for King Dollar.
In the FX space, fears sent Yen and Swiss safe-haven ahead in demand next to King Dollar, while the comdolls and Sterling were offered in the short and medium term accounts. Long term saw more demand for Yen alongside Kiwi, Aussie and Euro. The FOMC meeting begins Tuesday before press statement on Wednesday.
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 $|
|AAPL||142.94 / 143.00||stock options/call||62.38||17,650.1M|
|CLF||19.75 / 20.00||stock options/call||53.95||903.4M|
|FB||355.70 / 350.00||stock options/call||42.65||7,050.9M|
|GME||192.20 / 170.00||stock options/put||40.48||757.6M|
|CL||64.38 – 71.10||crude oil futures||1,297||89.2M|
OUR PICK – EUR/CAD
Trading the range. EUR/CAD has been in the range of 1.51 – 1.46 for the past three months and currently on the upside momentum. Yields obviously favor the Loonie but yield is not the only factor that moves currencies. Recent ECB’s so-called “recalibration” of its bond purchases (aka tapering) provides momentum for the Euro. We expect further upside for the short and medium term before long term sellers step in to short for yields.
|Long-Term||Sell @ 1.5150/70||1.5200||1.4900||1.4750|
This article is for general information purpose only. It is not an investment advice or a solicitation to buy or sell any securities. Opinions expressed are of the authors and not necessarily of MFM Securities Limited or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.