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Posted by Tango
on May 31, 2019, 7:14 am
Both markets experienced weakness from the start and have not been able to hold any strength. Yesterday was a strong day for the market but selling was intense. Total volume was 113,474 lots and 53,453 lots in July. Buying was intense and so was selling by longs and origin, possibly. Activity stretched across the board. Today the depth of market is well populated on the buy side. Selling is more spaced apart. 8:00 should bring continued short covering. It is the last day of the week and month and with news of threatening tariffs by the US toward Mexico. Although this move by Trump is already being challenged by members of his own party, the impact on the Peso and other currencies is evident.
Although the Ä and the • are higher, making the DX lower, other currencies are lower against the $. The Yuan is lower as are most other EM currencies. USDMXN is 19.7985 +.6635 +3.70%. Itís too early for the COP but early trading indicates activity this morning at unchanged, 3362.98. USDBRL which closed at 3.9742 is showing a value of 4.0096 on the CME.
Bond futures continue to climb lending support to gold which is $10 higher but other metals are lower as equities are sharply down. Oil is also sharply lower. Grains, sugar and cotton are lower while cocoa is higher.
So it is a day of uncertainty this Friday. Funds should continue to cover but we see the affect of global uncertainty, man created, on all markets. 101.00 is holding for now.