Early Tentative Sentiment in Broad Markets, Global Stocks Down as Treasury Yields Rise

U.S Crude Oil has attracted plenty of attention from hedge funds. Manufacturing data will come from Europe today. 

China Offers Encouragement, Trading Starts Cautiously as Week Begins

Asian equity markets have opened cautiously this morning. But while most of the Indexes have declined, the losses have not been overwhelmingly strong. China has voiced encouragement again that its trade disagreement with the U.S can be resolved. The International Monetary Fund this weekend warned a trade conflict between China and the U.S could escalate, and cause harm to the global economy. Data from the U.S will be light with Existing Home Sales the highlight. Manufacturing numbers are coming from the European Union and should be monitored. European equities have been lackluster early.

Euro and Pound Stay Under Pressure, ECB Not Expected to Change Policy

Reports have circulated early this morning the European Central Bank will not make any significant moves regarding its monetary policy until at least July. The ECB has a meeting later this week, but no changes are expected. The Euro has remained within a weaker stance, along with the Pound, versus the U.S Dollar. The Yen has also been rather weak and is approaching mid-term resistance. Manufacturing numbers from Japan published earlier today came in fractionally below expectations. The Bank of Japan also will conduct a policy meeting late this week. The U.S Dollar’s sudden strength in forex has raised eyebrows, and speculators may be tempted to look for reversals, but they should be careful.

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Hedge Funds Joining Speculators in Crude Oil, Resistance Toppled

U.S Crude Oil has built up a solid head of steam the past few weeks and has toppled long-term resistance. The commodity is above 68.00 U.S Dollars per barrel. And speculators along with hedge funds seem to believe Crude Oil has an opportunity in the near term to make further climbs.

Manufacturing Data Coming from Europe, Housing Numbers from States

The European Union will release a Manufacturing Purchasing Managers Index report at 8:00 GMT which could affect forex traders.

• 8:00 AM GMT, E.U, Flash Manufacturing PMI
• 14:00 PM GMT, U.S, Existing Home Sales

Yaron Mazor is a senior analyst at SuperTraderTV.

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