Ridge Capital Markets | Jun 01, 2016 10:58AM ET
Today is a day of international manufacturing data that is very likely to influence market sentiment. Russia, Spain, Italy, France, Germany, the UK, Canada, Brazil and the US – all these countries are releasing their manufacturing economic data today, so traders are expected to digest all this information coming from:
All in all, Ridge Capital Markets expects the Eurozone’s and Brazil’s manufacturing data to be poor and indicative of the crises that are affecting those markets:
Today we will also learn about API Crude Oil Stock’s estimates. It is important to note that yesterday WTI made it to $50 but couldn’t hold that level, falling back to $48/$49. Turmoil in Nigeria and Venezuela, and reflections of Canada’s fires have been supporting the short-term bullish oil story for more than we had anticipated.
Still, we believe that, save a dramatic and highly unexpected production cut (not freeze) decision in next OPEC’s meeting, oil is going down. That is why we continue to like a short oil position at these $48/$50 levels, and we continue to recommend traders to go long the USD against the CAD, the MXN and the RUB.
That trade should be backed by an oil correction and by the upward pressures on the USD that the Fed is creating with the possibility of a June/July rate hike.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.