The Bank of Japan took control of it’s currency in grand style last week, having duly selected the largest hypodermic they could find, filled it with steroids, and then injected a syringe full directly into the artery of the dollar yen.
For longer term traders in YM futures, the index in April has continued the pattern of trading that we saw during the second half of March, with the Emini contract trading in a tight range, closing the week following the NFP data, at 14,484, and back in this area once again.
With commodities in general taking a hammering in the markets at the moment, neither silver or gold have escaped. In the last two days, the dramatic falls in silver, have also been reflected in gold futures, with the June contract trading lower once again overnight on Globex as we test the $1540 per ounce level.
What an end to the month! If traders in soft commodities were expecting a quiet end to the first quarter of 2013, there was a real sting in the tail, with the latest USDA report released on the 28th March, sending corn futures tumbling, and spilling over into oats and the soybean market. And the catalyst for these dramatic falls?
Morning Coffee Break – Tuesday April 2 April what is thought of being a strong month historically began the month and second quarter at a slow snail pace. The Dow and the bulls have look to April as the best month of the year as far back as 1950 with an average 2.7% gain for the month.
Gold continued to trade in a narrow range once again yesterday, with the April gold futures contract closing marginally lower and ending the gold trading session with a narrow spread down candle, closing just below the psychological $1600 per ounce level at $1594.80 per ounce.
With strong words to support the Euro, Mario Draghi, the European Central Bank President, quelled fears over the future of the Eurozone. However, the bailout negotiations in Cyprus revealed cracks in this ‘floor’ supporting the region and markets. A ‘Banking Union’ has been undermined, imbalances within the region magnified and individual systematic risk returned.
May crude oil futures continued to climb higher once again in yesterday’s trading session, closing at $96.51 per barrel, with a narrow spread up candle with wicks to both top and bottom on the daily chart.
Morning Coffee Break – Monday April 1 In today’s Morning Coffee Break we find as traders come to their trading systems after a 3 day weekend and the start of the second quarter have several milestones to build on from record closes on the Dow and S&P 500.
As the old saying goes, another day and another dollar. Well not quite, and for silver traders it’s getting to the stage where a dollar move in the trading session would be considered a significant one! Yesterday’s trading, certainly didn’t break the mould of the last few weeks, and traders must be wondering if this market is every going to break.
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