Is the USD Invincible? Another Profit Taking Friday

By Kenneth@Xtrade - on September 28, 2018

 

Is the USD invincible? another Profit-taking Friday laced with a very active financial calendar. On the docket are various Consumer Price Index reports, PCE, and Canada’s GDP report to mention a but a few.

Following the US fed rate hike’s initial scrutiny, The USD has established its stance vs a basket of other majors such as the EUR, GBP, JPY, and CHF.as “invincible”.  Upbeat Microeconomic data partly due to Private Sector Credit and ahead of the RBA’s rate decision lifted the AUD vs USD.

The DXY which measures the strength of the USD vs other majors was gathering momentum after a small downward correction, ranging between 94.92 – 95.12 up 0.18% by the time of print 07:47 GMT

Global Stocks: Were hit again after registering minor gains late Thursday. China reported a slowdown in industrial profit growth, down to 5-month lows amid coping with other punitive sanction from the US for purchasing Russian fighter jets. Italy’s budgetary and political saga weighs on Italian stock and impacts some EU sentiments negatively.

  • Germany30: Had lost 0.83% by the time of print 07:47 GMT. Ranging between 12,315.19 – 12,392.83 reversals are abounding, yet caution is warranted.
  • France40 Registered losses of 0.50% at 5,515.92 and trending from5,503.98 – 5,522.17
  • Italy 40 Is still churning on its tummy with no immediate resolute, between 20,882.50 – 21,075.00 down 2.40% at 20,922.50.
  • UK100 was looking for some respite however with the opposition party in search of a way to derail any Brexit proposals. The asset was pressured between 7,522.25 – 7,549.25
  • Meanwhile, Wall Street was supported by Apple Inc. and tech stocks.

Commodities:

  • WTI Crude Oil: Ahead of the day’s Baker Hughes Rig count report. and Sanction on Iran to curb its production of Oil in an increasingly Oil demanding era. Oil Prices are surging with rumors that BRENT OIL may touch $100 bbl and Crude Oil to the upside of the $80bbl. The politics surrounding Oil prices suggests it could be allowed to float higher in the short term. Today WTI stood 0.26% up at 72.31 in a range from 72.11 – 72.38. amid reports that Saudi Arabia and some OPEC members are quietly deliberating on boosting production by some 500,000bbl.
  • Gold Prices have been on a selloff in a range between  1,184.50 -1,189.10 as investors fell out of love with the safe havens, sorting after riskier assets.
  • Currencies
    EUR/USD The EUR slipped further down from Thursday’s open down 0.17% at 1.1622 to trend from 1.1613 – 1.1651
  • GBP/USD With ongoing Brexit fine-tuning, Boris Johnson is said to have hinted that, PM Theresa May, scrapes her Brexit proposal. Amid a disappointing UK GDP, Business Investment and Current Account reports. The pair were spotted down 0.15% at 1.3058 set on a bearish path from 1.3091-1.3038 knee jerks are not ruled out.
  • AUD/USD Standing out from the majors was the AUD beating its chest, up 0.21% and ranging from 0.7202 – 0.7225.

Cryptocurrencies: In tandem to Thursday’s post it is obvious by now that more investors are flocking back to the Cryptocurrencies’ to capitalize on their low rates. 96% of tokens were in a bullish mood. Green was registered across the boards

  • BTC/USD was up 4.37%
  • ETH/USD up 6.38%
  • XRP/USD up 3.08% on average all cryptos were up 3.6% approx. As Italy prepare to join the European Blockchain partnership.

 

 

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Some Sources:

https://uk.investing.com/news/economy-news/italys-budget-proposal-hikes-deficit-defies-eu-and-sends-shiver-through-markets-1330217

https://uk.investing.com/news/stock-market-news/italian-stocks-banks-bruised-by-italy-budget-delay-1328809

https://www.investing.com/news/forex-news/forex–dollar-little-changed-aussie-dollar-inches-up-ahead-of-rba-decision-1627397

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