Oil prices settle below 68 dollars a barrel as a result of investors shifting to less riskier commodities.
- Oil fell yesterday settled below 68 as consumer confidence data from the US showed lower than expected results. While the expected value was 49.0, the actual one came shy at 46.6 which was the second decline in a row.
- The Canadian dollar followed Oil track and dropped against its green southern neighbor on the back of falling equities and Oil. US equities slipped at open as the signs of global recovery were in doubt, backed by a report coming from the US, showing house prices were falling also in May.
- Yen recovered strongly in early NY session as investors are fleeing to Japanese yen which has been lately sought as a safe haven. Reports from IMM were showing that the net long positions in Yen have increased significant in the last few months, showing signs of shift towards less riskier currencies.
- Auto plants shutdown in the US, may adversely affect the durable goods report for June, were analysts are expecting a significant drop as a result.
Currency to watch out for: EURUSD & GBPUSD
- The EURUSD pivot point is at 1.4130 with a preference to enter into long positions at 1.414
- The GBPUSD pivot point is at 1.6380 with a preference to enter into long positions above 1.6390
Today's calendar and market movers:
- US durable goods expected to drop to -0.6%
- US Crude Oil inventories expected to rise to -1.1 million
- US stocks end slightly lower with the Dow down 0.13%, S&P down -0.26% while Nasdaq up by 0.9%
- As of 06:10 GMT the Nikkei is 0.25% up and the Hang Seng -1.63% down.