The dollar traded sharply higher versus majors and emerging markets following the ECB Press conference yesterday. The enouncement for further stimulus for EU banks from the ECB and a dovish rate outlook sent the Euro sharply lower to 21 month lows versus the dollar and triggered a selloff day in EU and US equity markets. Overnight, the Chinese trade balance came weaker than expected and coupled with and a downgrade on a leading Chinese A stock led to a sharp selloff in Asian markets, led to a CSI300 4% drop. FX markets saw the most volatile day in 2019 as the dollar traded more than 2% on average versus emerging markets leading to investors flee from riskier assets and the Euro. Gold traded higher overnight on a run to safety while OIL reversed yesterday gains for a marginal positive close at 56.32$ per barrel.
US NFP and CAD Employment Change at 1:30 pm are the important news on the agenda Friday.
Swing trades follow up