FXStreet (Guatemala) - Analyst at ANZ offered a breakdown of overnight markets, sighting investors seek out yield in risk on investmenting ahead of the BoE, ECB, and FOMC all produce statements today, which will drive currencies.
Key Quotes:
"The recent dissipation in market volatility continued to support risk assets early in the London session, with European equities extending their recent gains and oil prices advancing further. However, risk appetite petered out through the afternoon. European stocks pared early gains, as did US bourses, before staging a late recovery."
Meanwhile, crude oil prices largely erased earlier gains following a report by the EIA that showed US crude inventories rose by a further 3.1 million barrels following a nearly 4 million barrel build the week before.
It was a choppy session for gold. Prices initially ground higher through the London session, but a sharp selloff later ensued after they failed to break key resistance levels.
It was a mixed session for sovereign bond markets. US Treasuries sold off ahead of the 10-year auction, but these moves were later pared slightly amid the reversal in oil prices and disappointing equity market performance.
US 10-year yields are 4bps higher at the time of writing. Meanwhile, core and peripheral Euro Area sovereign bond yields were little changed in a choppy session of trade."
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