Macro Afternoon

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by Chris Becker

The USD continued to selloff today as the aftermath of Trump (apostrophe) s first pres conference, with almost no details regarding fiscal spending plans or otherwise provided created huge volatility overnight in currency markets. That continued somewhat today with the fallout limited to Japanese stocks as Yen and gold surged on the haven trade, the later almost reaching $1200USD per ounce.

The Shanghai Composite is down nearly half a percent to 3123 points as the PBOC trieds to keep the onshore Yuan firmer in today’s fix. The Hang Seng is doing worse, down 0.7% and erasing most of yesterdays gains yet momentum remains quite positive on the daily chart:

HSI.fsDaily

Stocks are negative in Japan as well with the Nikkei retreating over 1%, down back to 19113 points.. The USDJPY is the culprit again as the Yen continues to find a strong bid overnight on the Trump conference, the USDJPY pair slumping through the 115 handle to find a temporary bottom here at 114.45 or so:

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USDJPYH1

S&P Futures are mixed, opening strongly but fading into the afternoon trader and hanging around the point of control at 2260 points going into the London open:

S&P.fsH1
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The ASX200 is barely treading water, down only few points to 5766 points as it absorbed its own booming domestic currency.

That’s right, the Aussie dollar is booming higher again as USD is dumped, the PAcific Peso is reaching up to the 75 handle, going a little too fast here for mind. Its about to surpass the overnight session high, so watch for another breakout overnight:

AUDUSDH1
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The data calendar tonight is again quiet with weekly US initial jobless claims.