EURUSD finds support with ECB comments
The euro began to advance as the ECB reiterated its stance on cutting rates. Unlike the Fed, which stated that if incoming data suggests sticky inflation, it will be appropriate to hold the current restrictive monetary policy stance for longer. This signalled that a rate cut was not happening this half of the year as economists wondered how much more strength the dollar has. Bullish sentiment could lift the euro to 1.0850 with 1.0600 as support.
UKOIL retreats as demand uncertain
Brent crude suffered a sell-off as inventories increased from the previous EIA reading. Oil now trades near monthly lows over demand concerns going into Q3. However, losses in oil are being limited by ongoing geopolitical tensions, which could be seen as a slight correction in the market, with economists expecting another drive towards $100. This indicates the overall wariness about demand growth for the rest of the year. 86.00 is a fresh support and 92.00 remains the first hurdle to the upside.
NAS 100 falls further over mixed bag of earnings
After another slip added to the selling pressure, the Nasdaq 100 attempted to hold the 17000 level. The Fed has signalled they are considering rate cuts in the future, but the lack of confirmation has left traders anxious. Lacklustre Q1 earnings have also cast a shadow on the economic outlook. 17200 is the hurdle ahead for a broader sell-off, whilst any attempt for the index to get back on its feet needs a close above 18000.
