Talking Points
- EURUSD slides to new lows on Dollar strength and on outperformance of U.S yields. Trigger behind the move is said to be hawkish comments by San Francisco Fed president Williams.
- ECB’s Lautenschlager tries to talk down expectations of further ECB monetary easing, while ECB’s Liikanen says that the risk of deflation is still in place.
- I also discuss levels for crude oil following comments from Saudi Arabia.
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Overview
Over the last 24 hours the U.S. Dollar has seen gains across the G10 space as comments by San Francisco Fed president Williams boosted expectations of a December rate hike. Comments also triggered declines across the commodity complex.
With the EURUSD price momentum being strong, the markets are also ignoring economic data as this morning’s strong E.U. PMIs and soft U.S. PMs showed. With the ECB and Fed on autopilot until the December rate meetings, I don’t expect any major changes to the prevailing trends, be it the Dollar, commodities or equity indices.
In the video we cover setups across the major FX pairs, DAX 30, FTSE 100, and S&P 500. I also discuss levels for crude oil following comments that have emanated from Saudi Arabia alongside the positions of Countries such as Venezuela, Russia and Iran.
--- Written by Alejandro Zambrano, Market Analyst for DailyFX.com
Contact and follow Alejandro on Twitter: @AlexFX00
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