Full Day: But Thin Participation - by Peter Hug

Full Day: But Thin Participation

Friday January

Although there is a full day of trading ahead, market participation remains very thin as many swing New Year’s Day into a long weekend. Selling pressure continued overseas because of sliding oil prices, which are testing the $52 handle, and a stronger dollar index.  The Euro is testing the psychological 1.20 level and it appears likely that a break of this support band is imminent, although small buying may emerge to create a bounce first. The macro picture continues to support the view of a stronger dollar, which will keep the metals under pressure, but the equity markets must be watched for a reversal, which would create some capital flows into the commodity space.

By Peter Hug
Global Trading Director