Repatriation Likely to Trigger Break in USD JPY through 80.24
Japanese equity markets dropped sharply lower early Tuesday driven by panic selling investors after Prime Minister Naoto Kan said a “substantial amount” of radiation was leaking from a nuclear power plant. The weakness in Japan spread all over the world, sending some global markets to multi-month lows.
Uprising in Egypt May Trigger Flight to Safety Rally into U.S. Dollar
The Euro’s closing price reversal top on Wednesday was confirmed overnight, indicating that the market may retrace back to 1.3716 to 1.3681 over the near-term. Technically the main trend remains up unless 1.3570 is taken out; however, a closing price reversal top is often the trigger that begins a change in trend.
Irish Debt Worries Trigger Break in Risk Currencies
U.S. Equity Markets Rangebound, but Jobless Claims may Trigger Breakout
Today marks day 15 of the current rally in the U.S. equity markets and the action the past three days is suggesting that this rally may be running out of steam. The December E-mini S&P chart in particular seems to be indicating that we are still rangebound and that the markets are merely testing the upper boundary of the range.
Employment Worries Help Trigger Stock Market Sell-off
Employment worries help trigger a sharp sell-off in U.S. equity markets on Monday, leading to speculation that the month will end with another weak day on Tuesday. The problem with the market this week is Friday’s Non-Farm Payrolls Report. The market is looking for a decline of 106K to 120K and a jobless rate of 9.6%.
Overbought Conditions Could Trigger Weaker Stock Market Opening.
If overnight trading action is any indication then look for U.S. equity markets to open lower. The lack of buying interest overnight is most likely a reflection of short-term overbought trading conditions and the lack of fresh economic news. The Dollar is still under pressure against the Euro and British Pound, but equity traders are a little disconnected from this move this morning.
Euro Touches 1.3105; Weak Equity Markets Trigger Volatile Trading Session
The Euro surged to 1.3105 for the first time since May shortly after U.S. equity markets opened, but was unable to hold this level as stocks corrected sharply during the trading session. The subsequent break triggered volatile moves throughout the session with the market retracing inside the 1.3105 to 1.3059 range several times.
Weaker Equities could Trigger Flight into U.S. Dollar
The U.S. Dollar is picking up strength this morning as traders shed risky assets. Investors are lightening up positions because of the weaker durable goods data, but the actually selling pressure may have started last night following a disappointing Australian Consumer Price Index number.
Weak Economy, Technical Reversal Could Trigger Stock Market Break
Overnight stock futures are showing slight gains. Selling in Asia and a 4.2% drop in Google stock is likely capping the market in the pre-market. News that Goldman Sachs reached a $550,000 settlement with the SEC has had very little impact on the market. Trading has also been light ahead of the release of earnings data from Citigroup, General Electric and Bank of America.