Italian Tensions Easing Market or Setting it up?

Tensions in Italy, eased EU shares were seen climbing with Asian Stocks, even with Chinese markets closed till the 8th of October for National Day Celebrations and Germany closed for Unity Day commemorations today.

Commodities: Were mostly bullish Wednesday,

  • XAU/USD: was ranging between 1,202.62 – 1,208.31
  • Oil: Cranked up getting used to its new support levels above $75. Ahead of today’s Crude Oil inventories, WTI oil rallied 0.28% trading between 75.07-75.53. As uncertainties surrounding productions is deliberated on there are some projecting Brent Oil to reach $100 bbl by the end of the year.
  • Nickel: Was amongst the few commodities treading water, down 0.20% swinging between highs of 12,575.00 to lows of 12,437.50
  • Silver: was 42% up 14.745 with possible upside ranging from 14.720 – 14.855
  • Copper: Climbed modestly by 12% oscillating between 799 – 2.820.

Currencies:

  • EUR/USD  The EUR rose from almost 6 days of bearish trends on positive headways from the Italian budgetary reports, however, gains may remain in check. By the time of print 09:48 GMT the pair had edged up 0.23% swinging from 1.1536 – 1.1593
  • GBP/ USD.Is hawkish although shaky ahead of UK Prime Minister Speech coupled with Economic data release on UK Services PMI which may fall below expectation. GBP/USD were up 0.22% trending from 1.2941 – 1.3053.
  • USD/JPY pair was reported at 0.19% high, between 113.52 – 113.90.

Global Stocks: Were mostly bullish, however with a deluge of economic reports coming out the euro-area specifically German, and EU, Services PMI may disappoint market expectation.

  • Germany30: Was up above Tuesday’s close yet up streams are contained in a range of 12,203.60 – 12,310.76.
  • Italy 40Rallied by 0.29%to 20,555.00 in an uptrend ranging from 20,530.00 – 20,817.50.
  • UK100 Surged from Tuesday’s lows, up 0.10% at 7,482.37 to range between  7,480.25 – 7,507.75.

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

 

 

Some Sources:

https://uk.investing.com/analysis/italy-tensions-keep-markets-on-edge-ahead-of-services-pmis-200203956

https://oilprice.com/Energy/Oil-Prices/Why-The-Saudis-Cant-Keep-A-Lid-On-Oil-Prices.html?utm_source=browser&utm_medium=push_notification&utm_campaign=PushCrew_notification_1538539463&_p_c=1

https://uk.investing.com/news/stock-market-news/asian-shares-ease-euro-near-6week-lows-on-italian-woes-gold-jumps-1334628

https://uk.investing.com/news/forex-news/forex–euro-bounces-higher-on-italy-budget-reports-dollar-softer-1334815

https://uk.investing.com/news/commodities-news/after-lean-years-big-oil-is-under-pressure-to-spend-1334684

NAFTA Out, USMCA In! USD Remains Top Gun

In a last-minute ditch, the US and Canada reach a trade agreement. Effectively dumping the NAFTA deal to adopt a three-way agreement between the US, Mexico and Canada dubbed the US Mexican and Canadian Agreement (USMCA).

Although it maintains most of the core frame of the NAFTA agreement substantial efforts were made by both side America and Canada to wrap this deal up, around 12:00AM EST

Global Stocks: Were seen mixed to bearish as the good news between the US, and its neighbors, don’t necessarily trickle to the EU and Asian Markets. In fact, the US-led Sanctions against its neighbors, China and EU remain intact. As investors attempt to analyse the status quo Asian Shares were down trotting. EU stocks were also in a negative mood unable to recover from the pull-down last week by the Italian budget delay which still weighs on market participant’s sentiments.

  • Germany30: Has been pinned into a bearish corner down 0.56% at 12,267.73 ranging between 12,209.71 – 12,300.68 by the time of print 07:45 GMT.
  • France40Had receded by 0.80% at 5,462.54 to range from 5,462.23 – 5,480.24.
  • Italy 40 Was down 1.36% lingering around 20,324.50 in trajectory oscillating between 20,199.50 – 20,489.50
  • UK100was wallowing dovish territory, down 0.45% sliding from 7,488.75-7,453.15

Commodities:

  • WTI Crude Oil: Friday’s Baker Hughes report indicated a drop in the number of USD Rigs from 866 down to 863 perhaps as Oil prices rise it becomes not competitive enough for shale an fracking oil extraction.
  • OPEC was only able to add 90,000bbl even with Saudi Arabia sticking to its pledge to boost production in September and October.
  • Approaching deadline for US-Led sanctions Iran exacerbates matters causing acute panics of insufficient oil. WTI rose in tandem up 0.11% at 75.38 and set in this 75.35 – 75.91ahead of Tuesdays’ weekly API oil stockpiles.
  • Gold As investors ponder the effects on recent US monetary policy raising the Interest rates, formalization of trade agreements between the US, Mexico, and Canada with an eye out for the upcoming Indian Holiday of lights (Diwali) cautious market participants explore the option of hedging or acquiring the precious Metal (GOLD) especially after falling below the 1200 mark

Currencies:

EUR/USD With the USD retaining its bullish stance the EUR and other majors have relinquished gains. The EUR/USD pair was down 0.43% at 1.1528 swinging between 1.1522 – 1.1623

  • GBP/USDGBP has not been making any headway down 0.48% at 1.2982 ranging between 1.2976 – 1.3053 as the UK’s PMI reveals that the construction Industry shrunk at a faster pace with the previous 6-months.
  • AUD/USD The RBA as expected did not raise the interest rate. Standing pat at 1.50% the AUD was subdued to the rallying USD with the pair seen trending between 0.7168 – 7238 down 0.80%
  • USD/JPY although the USD consolidates which is evident in the climb in the DXY up 0.32% at 95.60. The USD was unable to retain its grip over the JPY, with the pair seen backsliding 0.20% from 114.02-113.63 at 113.66.

Cryptocurrencies:

The Crypto arena continues to splash water in the market as the establishment looks for a better way to regulate and provide safety to the industry. As ICO ‘s become rampant with occasion fraudulent activities. All in all, as the blockchain technology, become ubiquitous Token gain popularity and shamed. Ripple, for example, went live with it xRapid with 3 initial users to test the transaction platform.

  • XRP shares rallied initially before parking at 0.56217 a 24-hour change of -4.48%, however, a positive 7day change of +22.69%
  • BTC was also bearish down 0.18% after a brief rally.

Meanwhile, Tesla CEO, Elon Musk faces SEC punitive action weighing of Telsa socks and Wall Street investors decipher the ramifications.

 

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

Some Sources:

https://oilprice.com/Energy/Crude-Oil/Underwhelming-OPEC-Fuels-Oil-Price-Rally.html?utm_source=browser&utm_medium=push_notification&utm_campaign=PushCrew_notification_1538452885&_p_c=1

https://www.cnbc.com/2018/10/01/nafta-deal-doesnt-mean-us-china-trade-relations-are-about-to-improve.html

https://www.cnbc.com/2018/10/01/new-trump-trade-deal-leaves-nafta-largely-intact.html

https://www.investing.com/news/cryptocurrency-news/ripples-xrapid-goes-live-with-3-initial-users-1631282.

 

 

Is the USD Invincible? Another Profit Taking Friday

 

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.

 

 

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

 

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

The Market Digest the US Fed Rate Hike Amid Japan-US Trade Talks on Tap

The Market digest the Fed rate hike.

In consensus with the market expectations, the FOMC raised the interest rates from 2.00% to 2.25% and in the press release 30 minutes later hinted at moving away from its ACCOMMODATIVE POLICY. Meaning the Fed have left the door ajar to raise rates in the near future as they may deem fit.

The USD undoubtedly was volatile during the releases, however, settled higher vs its rivals and supported by today’s Macroeconomics data release from the US which includes, GDP, and initial jobless claims reports to name a few.

Global Stocks: Asian shares reclined as the China-US trade talks get drowned and the USD firms, weighing on the EU shares.

  • Germany30Had lost 0.47% by the time of print 08:33GMT to 12,324.60 and spinning down from 12,344.83-12,272.59.
  • France40 Was seen 0.20% down trotting at 5,501.90 in a range between 5,485.83 – 5,510.16.
  • Italy 40dropped nearly 1.66% to 21,250 pressed down by the delay with the Italian budget, which caused bank stocks to free fall. The Stock was trading between 21,157.50 -21,470.00.
  • UK100was amongst the few odd ones out. Hold on to minute gains in between 7,489.14 – 7,523.75.

Commodities:

WTI crude: In conjunction with Wednesday’s post-WTI crude performed as expected. Dipping due to the US Home Sales report, and slipping further by the built in the Crude Oil inventories of nearly 1.8 million barrels and then subsequently by the Fed rate hike.  Crude oil prices are sensitive to ongoing implementations of US-led sanctions on Iran to range between 71.97 – 72.56 up 0.98% at 72.27 with possible upside movement.

Gold With the USD supported. Most investors shunned the safer havens, GOLD, CHF, and JPY to name a few putting Gold price on a temporal dovish to a sideways path between 1,198.30 – 1,202.50. Market participants ponder on the timing to go, long most likely around the Diwali holiday celebrations.

  • Currencies 
    EUR/USD  lost it attraction as market participants digest the impact of the US rate hike. The pair were seen 0.28% down between 1.1685 – 1.1757 and standing at 1.1709.
  • GBP/USD meanwhile is plagued by domestic microeconomics and uncertainties surrounding the ongoing Brexit diplomacy.

Meanwhile, the US and Japan prepare for trade talks.

Cryptocurrencies: As Market Participants weigh the possible effects on the stance of the FED and the US-China trade impasse some Investors are attempting to take a small profit on the cryptocurrencies.

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

 

 

 

 

 

 

It’s the Final Countdown To The US Rate Decision With Crude & Gasoline Inventories Report

The final countdown to today’s Fed rate decision and USD remains subdued. Largely because about 98.04% of market participants have already priced in the uptrends of the USD.

Hence the expectation is for the FOMC to hike by 0.25% to 2.25%. Should the FOMC decide otherwise, we could see a short yet steep reversal in trends.

However, if they do then the focus will be on the statements of Chairman Jerome Powell’s in is press release some 30 minutes after the release of the decision.  The keyword sort after in the adherence or exclusion from “ACCOMMODATIVE” policy.

 Global Stocks: Global stocks remain strained. Tuesday wall street fell, as China-US trade talks sour. While some of the top Tech companies testify in before Congress today namely AMAZON, GOOGLE, APPLE, and CHARTER-Communications. Meanwhile, Asian shares were bolstered by Chinese Insurance, Technology Hardware & Equipment, as well as the Banking sectors, help push stocks in the limelight. China also announces a stimulus package to provide enough liquidity for small to medium-sized companies. The EU shares displayed mixed signals ahead of the fed rate decision, by the time of print 08:41 GMT,

  • Germany30 Sails the tide with lows and highs ranging from 12,337.62 – 12,402.22 the automakers weighs on uptrends as US-China talks hit a snag
  • France40  Was mostly bullish rallying 0.14% to 5,486.87 and trading between 5,471.57 – 5,490.88
  • Italy 40 Shed 0.09% 21,570.00 and range in a range bound from 21,615.00 – 21,505.00
  • UK100 Was ranging in a  sideways trajectory from  7,490.25 – 7,513.25 at 7,507.31 jumping in and out of gains.

Commodities:

  • WTI crude: Despite US President Trumps’ punches at OPEC at the UN on Tuesday WTI Crude oil prices were not frazzled. Ranging between 71.84 – 72.38 ahead of today’s Crude Oil and Gasoline inventories report. Which could be impacted by economic data release from the US on Home Sales and the rate decision.
  • Gold prices remained downtrodden some analysts had expected to see the Gold prices rise as a contingency should the feds fail to hike rates however as of the time of print the Gold spot was bearish down 0.13 % swinging between  1,203.20 – 1,206.90.
  • Currencies
    EUR/USD  is capricious sensitive both to ECB’s Tapering plans and the Fed’s intentions coupled with activities in the Euro Area. The pair were seen between 1.1757 – 1.1776 down 0.02%
  • GBP/USD was caught ranging from 1.3191-1.3152 and bearish in its outlook as concerns of the Brexit is elevated.

Cryptocurrencies: It could be argued that the crypto arena is slightly positive as most of the tokens reversed loses.

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

Fed Interest Rate Decision on Tap With US- China Trade Talks off the Table

Relying on various Fed Rate Monitor tools to access the likelihood of another Fed Rate hike on due Wednesday it is noteworthy to acknowledge that nearly 100% of market participants have already bought in the hawkish trends of the USD.  With the expectation of a rise from 2.00% to 2.25% a 25basis point boost. The shook would appear to be if the FOMC is to hold pat for any unforeseen reason. The Caveat is to expect either an upside or downside knee-jerk upon the announcement of the decision.

On Friday China canceled its scheduled meeting with the US to iron out the spat on tariffs. Apparently citing that China will not negotiate with a “knife at its throat”. Thus by Monday, the full arsenal of the 10% on $200 billion worth of Chinese goods was implemented with China retaliating on $60 billion of US goods.

Global Stocks: are wobbly, The Chinese shares contracted while the Japanese rose slightly.

Elsewhere in Europe, EU Shares were modestly bullish, helped by an upbeat German Wholesale Price Index, (WPI) report a leading indicator of inflation of prices. However, the upside is seen in check as the Trade War tiffs between the economies is on the rocks again.

  • Germany30  trades between 12,321.65 – 12,381.82 at 12,373.31 by 07:27 GMT and expected to remain range bound for the rest of the day.
  • France40  ranges between 5,468.91 – 5,492.70 analysts suggest resistance may be capped for the day.
  • Italy 40 rose 0.99% to oscillate 21,382.50 – 21,565.50 gains are believed to be in check henceforth.
  • UK100 runs amok between 7,455.25 – 7,485.25 as UK Minster Starmer voices out their concerns with the Brexit agreement or the worst case scenario leaving the EU with no agreements plagues investors sentiment.

Commodities:

  • WTI crude: prices rose to 4-year highs, amid production limitations and ahead of today’s API report. By 07:27 GMT WTI Oil stood $72.34 up 0.06% ranging between $72.03-$72.41. Further upside has not been ruled out yet.
  • Gold Prices are still dismal to the downside in a range from (1,201.30 – 1,205.00) as the USD continues to firm ahead of Wednesday rate decision. Investors are on risk on mode shunning the safe havens for the time being.

FX Market:
Nearly $3 .8 trillion in daily exchange is seen in this market however lately volatility is not always triggered according to familiar patterns. With Traders anticipating another Fed hike the USD seems to be in an oversold territory however technical indicators give the impression that they are in the comfort zone. Other major should have been bearish to the USD, the EUR, for example, is seen climbing vs the USD/

EUR/USD was at 1.175.4 at the time of print 07:27 GMT ranging from 1.1724 – 1.181.5 up 0.06%

GBP/USD Was under pressure as opposed to PM Theresa May’s Brexit plans faces more scrutiny. The par was seen at 1.3100. Set on a course ranging from 1.3095-1.3125. Any comment from Gertjan Vlieghe a member of the UK’s Monetary Policy committee will be used as a prelude to guiding the short-term trend of the GBP.

Cryptocurrencies: Following a short uptrend for the Crypto arena last week, this week began on the left foot for most of the Crypto as investors seek to capitalize on the upcoming Fed rate

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