Global Equities Strain to Hold Sentiment Up, Dollar Ready for Fed Talk
• Monday's broad and heavy risk aversion move wouldn't carry through to key breaks...at least not yet
• The Dollar will come back into focus Wednesday as Fed officials weigh in on monetary policy and liquidity
Sign up for a free trial of DailyFX-Plus to have access to Trading Q&A's, educational webinars, updated speculative positioning measures, trading signals and much more!
Another swell of volatility has stalled before critical technical moves were made. Monday's broad selling pressure in risk-oriented assets pushed a number of benchmarks to the precipice; but calm this past session has left us balancing. Given the motivation for this week's abrupt start traces back to swoons in assets such as Emerging Markets, high yield and biotech shares; it seems financial headlines are still carrying more influence than sheer speculative positioning. However, accounts of the wave of capital outflows from previous favorite assets and ETFs will keep sentiment off balance and the risk of a true breakdown dangerously close. As we await the verdict on sentiment trends, the Fed's rate timing conversation will be revived with a number of key speeches scheduled (including a distinctly risk-sensitive discussion on liquidity with New York Fed President Dudley). We discuss the fundamentals, technicals and market opportunities in today's Trading video.
Sign up for John’s email distribution list, here.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.