Yen May Extend Rise as S&P 500 Chart Warns of Trend Change

TALKING POINTS – YEN, AUSSIE DOLLAR, CHINA PMI, EUROZONE GDP, S&P 500

• Australian Dollar led commodity FX lower on soft China PMI data
• Global slowdown fears may swell if Eurozone GDP data disappoints
• S&P 500 technical positioning warns of broad-based risk aversion

More of the same may be in the cards as first-quarter Eurozone GDP data come across the wires. Baseline forecasts envision a slight pickup, with the economy adding 0.3 percent in the first three months of 2019 versus 0.2 percent previously. A tendency to disappoint relative to expectations on recent regional news-flow opens the door for a soft result however. This may feed risk-off dynamics.

Elsewhere, a delegation including USTR Lighthizer and Treasury Secretary Mnuchin will travel to Beijing to continue US-China trade negotiations. The Trump administration’s top economic advisor Larry Kudlow hinted that the outlines of a deal may emerge as soon as the coming two weeks. Markets have mostly shrugged at the passage of recent milestones in bilateral talks however.

CHART OF THE DAY – SIGNS OF S&P 500 TOP BOLSTERED BY SHOOTING STAR CANDLE

BEST XM OFFER OF  FREE $30 TRADING BALANCE PROFIT WITHDRAWAL

LOW  SPREAD  AS 0.0 PIPS