Equities on Wall Street and Asia traded in negative territory as US political concerns intensify. The caution comes in the face of a memo from the former FBI Director Comey, who stated that Trump urged him to drop the investigation into the former National Security Adviser Flynn, who recently resigned due to secret meetings with Russian politicians, in which the media has accused him of colluding with the Russians to influence the US elections.

The concerns have filtered through to the FX markets too, where the USD has been hammered lower, losing ground against its major counterparts as we see the USD Index, a measure of the strength of the USD against a basket of currencies, dip below 98. The weakness comes in favor of the JPY, which has quickly made its way to the 112.25 support level, while the EURUSD climbed aggressively to capture the 1.1100 resistance level. The GBPUSD remains relatively subdued, as we see the pair consolidating as its own political concerns, over the upcoming elections, cause caution.

In commodities, gold was aggressively picked up as market turn the tide to favor the risk hedging asset yet again. We are now seeing the 1245 resistance level being tested, with bulls strongly eyeing the 1250 mark and beyond. Crude oil could not hold on to the $50 mark, and is testing below $49 ahead of today’s US Crude Oil Inventories, which if release higher than expected, could see the commodity make a b-line for the $50 mark and beyond. However, a worse than expected release will see the bears look for a retest of the $45 mark.

The risk off sentiment is expected to continue provided the political concerns intensify. However, should we see easing in tensions, we would see the tide turn as the USD strengthens while the JPY and gold weaken.

We also have a fair amount of economic release from various economies which will likely play a role in determining price todays. Should the figures come in better than expected, we would see the respective assets strengthen, while worse than expected release would see the respective assets depreciate.