The global stock rally has run out of steam and Asian equity indexes are broadly lower. The USA100 gave up gains to finish fractionally in the red. Risk appetite remained supported by mostly robust earnings, stronger than expected data, and hopes of a hefty $1.9 tln stimulus package.
Today: Focus mainly on Eurozone retail sales and the UK CIPS Construction PMI. The ECB releases its latest economic bulletin and markets will also look to Italy, where former ECB head Draghi accepted the mandate to try and form a new government. The BoE will announce its latest policy review today.
Biggest (FX) Mover – GBPAUD (-0.49% as of 09:50 GMT) – it continued aggressively southwards for the 2nd day in a row, reverting more than 35% of January’s gains. The asset is below 50- and 200-DMA, while intraday its fast MAs are sloping aggressively lower. Technical indicators are negatively configured with any rebound implying an increasing negative bias. ATR 0.00187, Daily ATR 0.01109.
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