Markets Brace For Some Profit-taking

Markets brace for some profit-taking following the Sino-US trade negotiations which injected a dose of optimism at the beginning of the week, However, as “hope” keeps getting slapped in the face. We are likely to see some retractions.
Although market participants are to assume that the meetings went well from US President Trump’s tweets, details are still inconspicuous. Causing Traders to avert risk i.e. especially with Fed Chair Jerome Powell on tap to speak perhaps downplaying the prospect of future rate hikes. Prompting investors to consider other viable options most flocking back to the safe haven, GOLD, JPY, and CHF, even the AUD gains vs the USD as AUD is a commodity currency moving in tandem with GOLD just as the CAD is affected by OIL.
Global Markets:
Although Asian Shares rose on Thursday Asian open on the backdrop of the USD and perhaps more stimulus from China. EU shares where not so hopeful as investors. Decipher the current condition brought on by the lack of a consistent and immediate resolution to resolve the trade impasse.

  • Germany 30: Was caught down 0.66% at 10,787.00 from lows of 10,783 and highs of 10,880.50 swing in and out of gains to the downside is likely the game plan today.
  • Italy 40: ranging between 19,145.00 to18,945.00 down 0.41% at 19,012.50 by the time of print 08:48GMT.
  • UK100: Was oscillating between highs of 6,891.0 and lows of 6,798.5 down 0.58% at 6,817.0
  • US30: Seems to be shedding it recent gains sliding from 23,844.5 to 23,689.0 and further downside may be visible by the end of the day by the time of print it stood at 23,709.5 down 0.49%

Commodities:

  • Oil: Rose to 52.21 as Saudi gave details to how much it was willing to cut export which was nearly by 800,000 barrels coupled with some-what manageable crude oil inventories which, reported a drop of 1.680 million barrels vs. the forecast of a drop of 2.400million barrels.
  • Gold: With the doubts in the market Gold keeps its luster seen at 1,297.05 by the time of print it is expected to drop perhaps to 1,290 when the trading on the USD resumes. However, upside movement to 1,298.00 is likely by the end of the day.

FX Market:

  • EUR/USD: The pair became hawkish late Wednesday rising to 1.1570 on a weaker dollar and fed minutes. There is an expectation for the EUR to climb perhaps hitting the 1.1600. however, as the USD tries to regain ground a drop to 1.1515 could be realized before up ticking.
  • GBP/USD: The pair crossed the targets set for yesterday to 1.2802 and like clockwork begins to shed gains, seen trending around 1.2764 down 0.19% with a support set at 1.2748.
  • USD/JPY: The USD weakened allowing the JPY to gain. The pair were spotted near support lines of 107.7. However, with the DXY climbing from 95.03 up 0.09%. The USD/JPY may climb back into the 108 thresholds perhaps 108.30 could be the resistance and level.

For further details, please visit Xtrade.com. You may also leave your comments below.
Related Links:
https://blog.xtrade.com/homepage/all-eyes-on-us-fed-munitescad-interest-rate-oil-inventoriesreport/
https://www.investing.com/news/economy-news/top-5-things-to-know-in-the-market-on-thursday-1743227

All Eyes On US Fed Munites,CAD Interest Rate, & Oil inventories,report

All eyes on US Fed minutes, Canadian interest rate decision and Oil inventories report. Market participants are hunting. Meanwhile, the US-China talk enters into its 3rd day, with the progress thus far encouraging. Despite the US government’s partial shutdown in demand for assistance in constructing the border Wall with Mexico Which enters its 3rd week., President Trump has offered the use of steel instead of concrete. Perhaps a sleek attempt to put steel stocks up on the charts.
The positive feedback from the Sino-US trade & tariff negotiations boosted the Asian markets rendering some optimism in global markets since the onset of the Trade War tiffs which has left markets attempting to recover from a significant clamp down.
Global Markets:

  • Germany 30: Is bullish up 0.46% at 10,874.5 by the time of print 08:30 GMT, set to climb to highs at 10,950 from lows of 10,812.00
  • Italy 40: Was spotted at 19,067.50 coming from 18,940.00 and trying to head back to beyond its current resistance levels of 19,107.50.
  • UK100: Hawkish surging 0.68% by the time of print to 6,908.53 from 6,892.50 -6,921.50
  • US30: Registered a triple-digit boost on Tuesday and the markets were encouraged by developments in the US-China talks, which enters into its 3rd day of deliberation. Ranging from 23,716.0 – 23,888.0. up 0.44% at the time of print. almost all the FAANG and Tech stocks are likely to rally, up.

Commodities:

  • Oil: The API revealed a drop of nearly 6.5 million barrels this and the progress between the two largest economies, allowed the price to rally, hitting the %49 bbl. and climbing to $50.20 the anticipation is for a rise to 51.10 or beyond before the crude oil inventories report is released at 15:30 GMT.
  • Gold: Meanwhile Gold swings in out of losses. Pressured down to targets of ranging between lows of 1,282.05-1,288.10

Other commodities like copper, Aluminium, and Steel edge up while Silver walks in tandem with Gold.
FX Market:

  • EUR/USD: Bullish at 1.1475 some weakness will be spotted as the day’s economic data is released however, a surge to 1.1482 is likely possible again.
  • GBP/USD: The pair was seen 0.48% up at 1.2771 and set rally to 1.27780 before losing steam as Brexit bites.
  • USD/JPY: They managed to cross the 109 targets before receding into the 108 territories, found ranging between 108.68 -109.00 upside movement back to 109+ is very likely on volatility in the afternoon of the EU open.

For further details, please visit Xtrade.com. You may also leave your comments below.
Related Links:
https://www.investing.com/news/economy-news/top-5-things-to-know-in-the-market-on-wednesday-1742011
https://www.cnbc.com/2019/01/09/uae-oil-minister-on-president-donald-trump-and-opec.html

Without Any Concrete Concessions, Market participants Jump

Without any concrete concessions, Market participants had excitedly jumped on the bandwagon that trends were going to surge with the US & China back at the table and perhaps the prospects of future US rate hikes were put on a slow burner. Unfortunately, the trends could not carry the sentimental burden much further without a challenge.
Although Global markets rallied most of them disappointed by not reaching their intraday target. Fumbling along the way as investors considered the outcome of the status quo.
Today’s calendar is fully loaded with sentimental indicators such as the EU Consumer Confidence, Service Sentiment, Industrial sentiment to name a few. Meanwhile, the US will be releasing stats on its Job Openings (JOLTS), API weekly Crude Oil stockpiles, Imports & Exports to gauge the strength of the USD.
Global Markets:
Monday’s prognosis that Wall Street was set for a positive open. Unless the US-China negotiations were to hit a snag manifested.

  • US30: Acted as forecasted remaining in familiar territory ranging from 23,498.0 – 23,662.0. by the time of print 08:15GMT it was spotted at 23,498.0 uptrends to 23,800 could be very feasible. As US Tech stocks attempt to recoup gains.
  • Germany 30: Was seen at 10,780.50 from 10,732.5 heading to 10,805.0 and perhaps beyond 10,820 .0
  • Italy 40: has been oscillating between 18,862.50 -19,545.00 caught at 19,007.50 changing gears for a possible steep climb up.
  • UK100: Has also been roller-coasting in a similar range to yesterday   6,740.0 – 6,805.0 up 0.51% at 6,778.8 and aiming to remain above the 6,8k for the day. Analysts think a more realistic number would be around (6,790.00 to 6,795.00)

Commodities:

  • Oil: Ahead of today’s American Petroleum Institute’s weekly crude oil stockpile, WTI Oil attempts to rally back to the $49bbl. mark before the report is released at 21:30 GMT. Awesome time for those in Australia. Ranging between 48.32 – 48.95
  • Gold: Investors verge out on risk-on mood. Neglecting the safe havens for a while. GOLD was spotted at 1,283.45 down -0.50% from 1,291.25 and it support levels at 1,282.75
  • Copper: Shares are bound to rally with the US- & China talking at least a surge of a 1%which is likely from 2.625-2.652

FX Market:
The DXY indicates the USD is consolidating seen up 0.15% from 95.68 -95.96. the apparent recovery but the EUR and other majors at odds with the USD gaining.

  • EUR/USD: The pair lost some of it mojo seen stuck around 1.1437 down 0.32% from 1.1485 heading to 1.1433 and lower if the economic data disappoints.
  • GBP/USD: GBP was pressured down to 1.2760 by the time of the EU open. As stocks prepare for a lift upwards on rumors of a better, House Price Index report. Due 08:30GMT.  The pair could go as low as 1.2748 before corrections are seen.
  • USD/JPY: With “risk” back on the USD rallied against the JPY at the time of print was at 108.92 a dip to 108.60 is plausible before maybe rallying back to 109+

For further details, please visit Xtrade.com. You may also leave your comments below.
Related Links:
https://blog.xtrade.com/homepage/the-market-is-teaming-up-with-action-and-trading-options/
https://uk.investing.com/news/stock-market-news/uk-shares-jump-as-investors-flock-back-to-retailers-hope-for-trade-deal-1419676

The Market Is Teaming Up with Action And Trading Options

The Market is teaming up with action and trading options, following Friday’s better than expected NFP report adding (315,000) which sent the USD up momentarily until Fed Chair’ Jay Powell’s speech in which, Investors interpreted his usage of the words “patient” as an attribute to “forward guidance” to be a caveat. Thus moving to the EUR, AUD, and even the GBP and saw some increased activities. The DXY gives clear evidence of the fall down 0.25% at the time of print at 95.94 with its nose down towards 95.80.
Further, developments in a dialogue between the US & China to resolve the impending Trade Tension was welcomed by Global markets.  Most of the Asian stocks climbed early Monday Asian Trading hours the sentiments were seen carrying the EU and likely the US up.
The Negotiations between the two economies also helped the comedies sector keeping WTI supported and increasing demand or sales for copper, aluminum and steel.
Furthermore, the TECH industry also found some respite. Facebook, Amazon, Netflix, Google, and various medical and pharmaceutical companies registered gains.
Global Markets:
Wall Street, is seen bullish today at the US open unless the US-China deal hits a snag.

  • Germany 30: By 08:00GMT it was spotted at 10,820.5 in a range of 10,797.2 -10,892.5 analysts think any breakouts to the upside would lead to 10,900 targets.
  • Italy 40: With the Italian budget accepted by the EC and cooler heads prevail share price rallied seen at 18,832.50 by the time of print 08:000GMT, coming from 18,780.00 and attempting to head to18,910 however the announcement of the Italian Public deficit report at 09:00GMT could lead to a temporal sell-off.  Below the support levels.
  • UK100: The stocks were seen up 0.50% at 6,805 in a range from 6,762.0 – 6,820.0 downside movement is seen before correction in the late afternoon in the EU trading day.
  • US30: Was one the main gainers by the time of print it was at 23,499.5 up 0.45% and range bound 23,284.0-23,624.0 once again the downward drag maybe elusive in shadowing the uptrends.

Commodities:

  • Oil: Following a volatile week for Oil prices the week ended with oil saved around $48 bbl. Very close to the Friday’s prognosis. Baker Hughes reported a drop the number of operation Rigs while the expected drop in crude oil inventories of nearly 4.5 million barrels, disappointed market participants by coming in with a build of 0.7million barrels. The intention of Saudi to cut production kept prices in check to trade between 48. 10 -48.95, by the time of print 08:00GMT it was seen at 48.86 although bullish we expect down trends to be in play, making the up climb a frustrating one or to be capped around 49.80 for the day.
  • Gold: has claimed the title for the default hedging option. As mentioned in our previous post until the US-China and Brexit are addressed to a satisfactory extent. Investors are cautiously banking on the precious metal. Seen up 0.58% at 1,293.20 is a range bound from 1,284.15-1,295.00

FX Market:
As the USD loses a bit of its bravado, EUR and a basket of other currencies

  • EUR/USD: was seen at 1.1437 08:00 GMT heading for 1.1440if crossed 1.1450 could be the next resistance to be tested.
  • GBP/USD: the GBP was bullishly caught at 1.2749 heading to 1.2755 if crossed 1.2765 becomes the next target followed by a 1.2782. Whether a breach to the 1.29 levels becomes feasible before the January 15th parliamentary Brexit vote remains to be seen.
  • USD/JPY: The Decline in the USD could be seen in this pair, however, the USD remains resilient trading sideways between 108.03 – 108.63

For further details, please visit Xtrade.com. You may also leave your comments below.

Related Links:
https://uk.investing.com/news/stock-market-news/ftse-flat-ahead-of-trade-talks-dunelm-lifts-midcaps-1418636
https://www.cnbc.com/2019/01/07/us-china-trade-beijing-says-both-sides-expressed-will-to-make-deal.html
https://blog.xtrade.com/homepage/the-first-market-weekend-of-2019-laced-with-faltering-optimism/
 
 

The First Market Weekend of 2019 Laced With Faltering Optimism

The First market weekend of 2019 laced with faltering optimism. Market participants hoping to book some profits ahead of the weekend laud to the economic events set to be released during the day. Amongst the deluge of reports is the UK’s HPI, EU Core PMI, US NFP, US Crude Oil Inventories, and Baker Hughes Rig count reports.

With The ADP report beating market expectation. Traders are under the impression that the NFP report will likewise be positive for the USD, Market participants are thus flocking to the USD, increasing demand appetite. Although the USD gains vs. the JPY the DXY which measure a basket of other majors against the USD was down 0.15% at the time of print 08:05GMT trading between 96.15 – 96.39. perhaps the reason why investors are still seeing Gold as an attractive means to hedge.

Global Markets:

Global Shares rose once again as news of China & the US negotiations is brought back to the table. EU markets took this as a positive sign.

  • Germany 30: Although bullish, standing at 10,531.5 at the time of print 08.05GMT the shares parade on familiar grounds between 10,393.2 -10,544.5 below yesterday’s resistance levels. The reason for this could be attributed to Market participants already pricing in disappointing economic indicators from the EU. Such us the (German Composite PMI. Etc.)
  • Italy 40: Was spotted at 18,322.50 by the time of print. With lows recorded at 18,165.00 and highs at 18,822.50 analysts are calling this a “Boomerang” as it may end up where it started the day. The median range should be around 18,458.00.
  • UK100: Shares were initially on fire before the disappointing Housing Price Index, (HPI) results were released. Share rose above the 6,700 levels for the first time in nearly a month to trade between 6,610.0 – 6,709.0.
  • US 30: Our prognosis from Yesterday Thursday, still stands share prices are unable to keep their heads above 23k. Likely to be ranging between 22,565.0 – 22,948.5. Although seen at 22,941 up 1.24% by the time of print. A quick run to 23k and back down would not be surprising around the release of the NFP report at 13:30 GMT.

Commodities:

  • Oil: Prices may tack on gains to finish the week on the upside. Tuesday’s API delivered yesterday revealed a drop of early 4.500million barrels in the US weekly oil stockpiles. Amid rumors that Saudi is cutting production further boosted WTI oil prices to close at 47.09. With the Crude oil inventories on tap, the expectation is for a surge to about 48.28 and further up if the report is supportive. A less favorable report will send prices down below 46bbl. However, trade talks send a ray of hope for Oil giants like BP.
  • Gold: Almost all projections have been manifested. The Gold prices crossed the 1,300 psychological level however lost steam to trade between 1,291.20 – 1,300.35 if prices drop below 1,2985 it could be a good buy signal while if it should climb above 1,305.80, it may trigger a sell-off. The market Uncertainties may push Gold prices to 1,320 by the middle of next week.

FX Market:

  • EUR/USD: The pair were spotted bullish early Friday EU open. At 1.1407 sport is at 1.1384 while resistance stands at 1.1420 when the reports in the EU fail EUR will recede perhaps to stand pat around (1.1395-1.1400).
  • GBP/USD: The GBP stretched its legs to highs of 1.2683 before giving up some gains to 1.2669 still a 0.30% up. Support for the day is noted around 1.2616. Brexit still weighs.
  • USD/JPY: The USD attempts to challenge the Yen after weeks of playing second fiddle to the JPY. Traders are on risk mode, buying into the USD ahead of the NFP report for the day.

Trading between 10752-108.45 by the time of print it was up 0.22% at 107.89

For further details, please visit Xtrade.com. You may also leave your comments below.

Related Links:

https://www.investing.com/news/commodities-news/oil-heads-for-biggest-weekly-gain-since-2017-as-saudis-pump-less-1737159

https://blog.xtrade.com/homepage/market-wounds-are-continuously-being-bruised/

https://uk.investing.com/analysis/stocks-rebound-on-china-hopes-us-jobs-report-in-focus-200205435

Market Wounds Are Continuously Being Bruised

Market wounds are continuously being bruised. Apple Inc. was forced to cut its revenue outlook for upcoming Quarters on low iPhone demand in China, due to its legal stance against QUALCOMM, amid regulations and privacy scrutinized policies which pull US TECH and US30 stocks down with APPLE Stocks.
A day teaming up with economic data aimed at providing further insights into the strength of the USD. Buttressed with several Fed Members speeches which are going to add to the day’s volatility.
Asian stocks remained mixed, the pressure is on EU stocks which are also slipping as wall street resolute to the same dismal fate.
Global Markets:

  • US 30: Was subdued below the 23K for a while trading between22,881.0 – 23,116.0 it is likely going to be knee-jerking in reaction to the ISM, Jobless claims, ADP non-farm, and the API weekly stockpile reports. Any downward trend beyond 22,800 is a good buy while above 23,115 is for a good sell.
  • Germany 30: has also been confined to a range between 10,555.5 – 10, 454.8. down nearly 1.0% at the time of print.
  • Italy40: Stood tall amongst her peers. Trading up 0.67% at 18,327.50 and range bound between17,680.00 -18,340 meaning the trades are loopy at least for the first half of the EU Open.
  • UK100: Was seen trading between 6,614.0 – 6,672.5 by the time of print 06:30GMT it was down 0.36% at 6,625.8 Ahead of the day’s Construction PMI reports due for release, with the expectation of a surge to6,660 by midday before is frizzles.

Commodities:

  • Oil: Reaction to geopolitical tiffs amid announcement for further supply constraints up to 520 bbl.  Got market participants excited prices climbed to 47.58 before pulling back. To trade between 45.38 – 46.33 In and out small gains.
  • Gold: After climbing slowly but surely to 1,292.80 by 06:30GMT and aiming to cross the 1,300 threshold Gold prices may slide momentarily, should the release of the day’s economic reports, succeeds to render support for the USD, Gold will stage a bold come

FX Market:

  • EUR/USD: was spotted at 1.1368 by the time of print attempting to head back to 1.1385. This asset is likely to swing in and out of gains from 1.1310 – 1.1385
  • GBP/USD: The pair is really feeling the crunch down 0.43% at 1.2555 market participants expect a rise to 1.2578. However, to range from1.2439 – 1.2611.
  • USD/JPY: The Yen rose considerably vs the US 106.85 at the time of print downward drag to the support levels of 105.01 is very possible, however, Analysts believe some swings to 107+ will be seen before mid-day.

Meanwhile, some take their chances with the crypto tokens.
For further details, please visit Xtrade.com. You may also leave your comments below.
Related Links:
https://blog.xtrade.com/homepage/markets-breathe-the-dawn-of-the-new-year-yet-past-wounds-are-slow-to-heal/
https://www.investing.com/news/stock-market-news/european-shares-start-2019-deep-in-the-red-1734574