Final Hour Selloff Causes US Stocks to Dip, Despite USD Slide.
US stocks reverse direction sharply in the final hour, sending the major indexes into the red, after the White House's government official orders salary cuts, and Large Rating Agency states Wells Fargo is a sell.
The Loonie ended down but higher than earlier lows. The Canadian dollar corrected from the selloff that occurred after the Bank of Canada's warnings on Tue about the economic risks of a strong currency. The USDCAD was able to pare losses in late dealings as US stocks dipped back into the red.
Gold rallied to above $1065/oz after a brief selloff saw it dip to $1048/oz. Gold Continues to benefit from economic uncertainty as investors are more than willing to buy the dips and place their money into gold, as it is considered a safe haven during difficult times.
Oil nearly managed to move above to $82 a barrel, despite inventories coming in higher than expected. Under regular circumstances we should have seen a drop in the price, but due to risk appetite riding high Oil benefited tremendously.
Currency to watch out for: EURUSD & USDCAD
- The EURUSD pivot point is at 1.4950 with a preference to enter into long positions at 1.4960
- The GBPUSD pivot point is at 1.6550 with a preference to enter into long positions 1.6560
Today's calendar and market movers:
- GBP & CAD Retail Sales expected to increase to 0.50% & 0.6% respectively
- US Initial Jobless Claims expected to come in at 515K.
DJIA loses 92 points (0.9%) to 9949, S&P 500 drops 10 points (0.9%) to 1081, Nasdaq Comp falls 13 points (0.6%) to 2151.