Equities Trade Mixed, Oil Rebounds on Suez Canal Disruptions

EU SHARES GAIN, WALL STREET SLIDES, OIL PRICES RALLY

The US dollar traded mixed against the other G10 currencies on Wednesday and during the Asian session Thursday. It gained against JPY, and slightly versus EUR and CHF, while it underperformed against NOK and CAD. The greenback was found virtually unchanged versus GBP, AUD, NZD and SEK.

NASDAQ 100 — TECHNICAL OUTLOOK

Nasdaq 100 traded lower yesterday falling below the 13000 barrier, and hit support at 12765. Overall, the index has been trading in a trendless mode since March 9th, between the 12700 support area and the resistance of 13300, and thus, we will adopt a neutral stance for now.

BRENT OIL — TECHNICAL OUTLOOK

Brent crude oil rebounded strongly yesterday, after hitting the 60.40 support marked by the low of February 12th. However, the recovery was not enough to reach the key resistance of 65.15. What’s more, the price remains below the prior upside support line drawn from the low of November 2nd, which suggests that another round of selling may be possible soon.

AS FOR TODAY’S EVENTS

During the European morning, we have a central bank deciding on monetary policy and this is the SNB. The last gathering of this Bank was back in December, which resulted in no fireworks. The Bank kept its policy unchanged, reiterating that the Swiss franc remains highly valued and that they are willing to intervene more strongly in the FX market. Given the latest surge in bond yields around the world, we don’t believe that the SNB will risk sounding less dovish, as this may result in a stronger franc, something that they don’t want to. Thus, we expect policymakers to keep policy steady and maintain their willingness to intervene when deemed necessary.

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