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Thin Holiday Trading Conditions Will Persist

Published 07/04/2019, 12:32 AM
Updated 07/09/2023, 06:31 AM
XAU/USD
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USD/HKD
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USD/KRW
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GC
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CL
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Gold Prices

Gold prices are holding to there form in early Asia trade.

Gold prices remain firm against the scrim of dreary macroeconomic data and expectations of fresh easing from the Fed. And with the TIPS under pressure that too adds to a growing list of narratives that bodes well for gold prices,

But the market remains thin, and we are not seeing the same amplitude of names rolling up on Gold option strikes that where prevalent yesterday.

Oil Prices

Another display of depressing price action in early Asia.

Despite the support from the drop in U.S. gasoline inventories and the fact that Shale drilling has slipped to a 1-year low in the US with working oil rigs down 5 to 788, oil continues to leak lower.

Tossing aside the short-term nature of fluctuations around the inventory data; It's impossible to escape the economic reality that we are in the midst of a global manufacturing downturn.

With global manufacturing PMI flashing red indicating that we haven't yet hit a cyclical bottom, there a lot riding on the shoulder of central bank policy to right this wobbly global economic ship.

USD/KRW

The won is trading a touch firmer today albeit still weighed down as Japan tightens the noose on a basket of high-tech material the export to Korea.

USD/HKD

USD/HKD gapped lower, as HKD funding continues to tighten. T/n is bidding at +7 - yesterday's s/n traded at 3/4.

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