Fresh week, stale markets

This Daily Digest will cover:

• Fresh week, stale markets

• Euro mildly stronger but an outlier

• Crypto remains heavy

• Big Tech Q1 results this week

Not a huge amount that is fresh and exciting to write about today as markets open close to where they closed on Friday which was close to where they closed on Thursday!

I retain my USD down bias but it has about as much momentum as me running the London marathon with only Euro/USD showing signs of life as it opens above 1.1000 again. This is more of a symptom of Euro strength rather than USD weakness as more rate hikes are expected out of the Eurozone. Above 1.1070 should ignite more buying, but in this environment that feels a long way off.

Crypto is a different story as the lack of a recovery over the last few days has seen more short term speculative longs trimming. We are fully in my medium term buy zone and whilst it does not feel particularly bid down here it was never going to. We have added to our long positions and will continue to do so unless 25,000 and 1680 yield where we have to question the whole strategy.

The calendar is pretty light this week data wise, but we do have the big technology firms reporting their Q1 results. Amazon, Google and Microsoft are amongst the big names to step up this week and with valuations looking stretched the risk is to disappoint short term.

As always, good luck.

Richard Usher
Head of OTC Trading