Italian Deputy PM Salvini Threatens to Crash Government
US Q2 GDP revised lower to 3.1%Mixed
DOE numbers highlight US Production near highs
Generally erratic price action in the market today as investor struggle to shrug off the prolonged perspective of a trade war between the US and China. On the political front in Italy, Salvini said to be ready to end coalition unless M5S agrees to vote for the new flat-tax law. Traders await for fresh drivers ahead of key monetary policy meeting in June and clear direction on major political risks.
US Equities traded flat after an initial rebound from key technical support levels. SP500 bounced off its 200 DMA settling below the 2800 after a choppy session.
The FX complex traded mix amid lack of direction in USD with most of its G10 counterparts flat at the EU close. The USD Index remained firm above the 98 level after US Q2 GDP confirmed growth above 3%.
The commodity space saw Oil dropped back to $58 amid firm US Production. The move happened after the initial bounce following Iran threat to use military pressure in the middle east if necessary to challenge US sanctions. Gold shot higher above the 1290 level despite a firmer USD and mixed sentiment.
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