Risk Sentiment Positive: VIX and Gold Move Lower, US Dollar Firms, Amazons Results Near

Risk Sentiment: VIX, Gold, and US Dollar Analysis and Charts

• The VIX has slumped by nearly 32% in the last seven sessions.
• US Dollar remains ahead of the FOMC decision and NFP report.
• Gold slipping lower as negative technical pattern begins to play out.

Risk markets are looking to push ahead in early turnover after a marginally positive session in the US and Asia. The VIX is touching a near three-week low and has fallen by nearly a third from the Friday 19th multi-month high. The Israel-Iran crisis is, for now, not dominating market headlines or thinking, boosting risk assets, while gold continues to nudge lower. Ahead, the latest FOMC decision and chair Powell‘s press conference, and Friday’s US Jobs Report (NFPs) are likely to stoke volatility and may turn risk sentiment around. Still, for now risk markets are happy to nudge higher.

In the equity space, Amazon (AMZN) releases its latest quarterly results after the US market close today. Recent Mag 7 earnings have produced wild, and unpredictable price swings and Amazons numbers must be followed closely.

VIX Daily Price Chart

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The US dollar daily chart continues to build a bullish flag formation with additional support seen from the 20-day simple moving average. The FOMC decision (Wednesday) and NFP data (Friday) are key for the US dollar this week.

US Dollar Index Daily Chart

Gold is slipping and looking to break lower as a short-term bearish flag formation unfolds. The 20-day sma is now acting as resistance and continued weakness will see $2,280/oz. come under pressure.