Sentiment Stays Supported Despite Hedge Fund Default Concerns

BANKS HIT BY FUND DEFAULT, BUT BROADER APPETITE STAYS SUPPORTED

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

S&P 500 — TECHNICAL OUTLOOK

As the S&P500 continues to trade above a short-term upside support line taken from the low of March 4th, the index quietly approached the area near its all-time high, at 3989. The index is still running above all of our EMAs on our 4-hour chart and the RSI with the MACD are showing positive price momentum. For now, we will take a positive approach.

AUD/JPY — TECHNICAL OUTLOOK

Last week, after finding support near the 82.28 hurdle, AUD/JPY reversed back up and is now trading above all of its EMAs on our 4-hour chart again. Also, the pair is balancing above a short-term tentative upside support line taken from the low of March 25th. As long as that upside line stays intact, we will continue aiming higher.

AS FOR TODAY’S EVENTS

During the European session, Germany’s preliminary inflation data for March is coming out. Both the CPI and HICP rates are forecast to have increased to +1.7% yoy and +2.0% yoy, from +1.3% and +1.6% respectively. This is likely to raise speculation that Eurozone’s headline inflation, due out on Wednesday, may also accelerate.

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JFD is a leading Group of Companies offering financial and investment services and activities.