Sentiment Turn Drags Equities and Yen Crosses, Important Event Risk Ahead
• Coming so close to a fresh record high, the S&P 500 has instead turned from its two week rally
• Top event risk in the upcoming 24 hours rests with the Kiwi Dollar on the RBNZ rate decision
• BoE minutes, Chinese data and Aussie CPI are noteworthy risk and monetary policy fodder
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Faced with the decision to return to record highs or back off its two-week advance, the S&P 500 stalled and put off its first record high in two months. The short-term appetites of speculators is growing increasingly transparent and event risk like the poor tech earnings after the New York close are generating greater fret from market participants. While keeping tabs on 'risk trends' and fundamental dependent pairs like the Yen crosses, it will be important to also keep track of high-level event risk on the docket ahead. In particular, the RBNZ rate decision Wednesday evening is a prominent event risk with heavy speculation carry a serious bias for the currency. We discuss themes and high-level event risk in today's Trading Video.
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