Market Research

It is a near-term rebound and should be treated as such. May being able to win a leadership contest yesterday, but Brexit saga is far from solution yet. May is going to Brussels today to seek compromise from European leaders in terms of legal assurances that Irish backstop won't be 'indefinite'.

This morning started with steady risk-on mood mostly due to the Trump's motivational tweets helping to revive what many expect to be a traditional X-mas rally. This mood was also underpinned by the news that Huawei CFO was finally given the bail.

EUR/USD has exhausted traders with chaotic and irregular moves up and down for almost a month. I have doubts about upside, to be honest. Today pair made some intraday move and as in the past, recovered previous sharp slump.

Stock markets made deep plunge and spectacular turnaround yesterday, which leaves many scratching their heads — whether this is bottom, is it time to buy? Yet, there was no follow through during overnight and asian sessions.

The USD/JPY rebounded overnight and during morning session, once again proving 112.20 support being solid one. Friday's NFP report diminishes Fed rate hike prospects and keeps the USD upbeat. On the other side, US-China tensions over Huawei executive arrest pressures a lot on risk mood and underpinning JPY’s safe-haven demand.