- FX: Today’s trade had a slight risk-on flavor, with the risk-sensitive loonie and aussie leading the way higher among the majors and the “safe haven” Swiss franc bringing up the rear. The Canadian dollar was boosted in part by hotter-than-expected CPI data 2.0% y/y vs. 1.7% eyed).
- Traders ramped up preparations for a potential no-deal Brexit after an unnamed French official stated that the current baseline scenario is for a no-deal Brexit.
- The FOMC minutes affirmed the Fed’s relatively optimistic domestic/cautious global outlook and raised the stakes for Friday’s Jackson Hole speech by Fed Chairman Powell.
- Commodities: Both gold and oil fell by less than 1% on the day.
- US indices closed a bit below 1% higher on the day. Even FX traders are keeping a close eye on stock indices, given USD/JPY’s close correlation with the S&P 500.
- Consumer Discretionary (XLY) stocks led the way higher for the second straight day, with Consumer Staples (XLP) bringing up the rear. All eleven major sectors rose on the day.
- Stocks on the Move:
- Retailers rejoiced after strong earnings reports from Target (TGT, +19% to a record high) and Lowes (LOW, +10%).
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.