Forex Blog — Trading news, Signals & Tips

In 2 trading days, the Dow Jones Industrial Average lost more than 1,300 points and the S&P 500 fell over 5%. 

Gold prices advanced on safe-haven demand following a shake in the global markets, with a weaker dollar seen as supportive. 

Asian equities retreated to a 19-month low after Wall Street suffered its worst loss in eight months, which led to broader risk aversion, which led to an increase in market volatility gauges and concerns over momenta stocks markets in an environment of rapidly rising dollar yields.

The Italian bond futures traded near their session lows and the BTP-Bund spread widened to 311bps, as the Italian Finance Minister Tria defended the Government fiscal targets in Parliament after the local press suggested that the budget watchdog is likely to reject the whole thing.

The BTPs were in focus as the 10-Year yield printed fresh multi-year highs through 3.5% and the spread to bunds widened back to above 300bps.

The Core European bond curves had bear steepened, taking their cue from the U.S. Treasuries in reaction to more hawkish comments from the Fed’s Chair Jerome Powell. 

Currencies fall against the dollar after the positive economic data. The euro is up to the level of 1.1463 and traders waiting for the most important event NFP tomorrow

Gold edged up on Tuesday as a recent dip to multi-week lows attracted some bargain hunters, but prices were well within recent ranges as the dollar remained on an upward trajectory. 

The Canadian dollar and Mexican peso lead gains among major currencies, as Turkey’s lira outperformed after preliminary data showed that the trade deficit narrowed in September.

Volatile conditions were seen during the European session as there were multiple conflicting reports concerning the Italian Budget.