Two Central Banks Interest Rate Decision Amid Trade Talks

Markets shrug off trade war jitters, throwing some bright light on global stocks. Amid the report from both the ECB and BOE on their interest rate decisions. although both are likely to stand pat volatility is highly expected during the release.

Reports claim the US and China have agreed to further Trade Talks which the market has taken as positive strides to avert or intensive the ongoing saga. China promises to retaliate should the US press on. Amid Hurricane Florence eminent arrival to the coast of South Carolina likely disrupting Wall Street for any amount of time has not been ruled out.

Global Stocks:

Meanwhile, Asian Shares closed bullish while EU Shares pursue a similar path.

  • Germany30Rose to 12,061.00  by the time of print with lows set at 12,015.24 and current resistance at 12,068.19 Analysts forecast a possible climb of 0.50% or more to 12,102.02 or beyond before any corrections.
  • France40 Also surged in tandem up 0.24% and oscillating   5,327.80 – 5,353.94.
  • The UK100 struggles in and out of gains trending between 7,293.12 – 7,319.45
  • Italy40 and the UK 100 seem to be experiencing similar mood swings jumping in and out of loses from 20,883.50 – 21,048.50

Commodities: As the USD firmed, commodity prices and holders of the various commodity assets find prices exuberantly high. Thus some SELLOFF is experienced   

As with Oil. On Wednesday Oil prices rose as the EIA reported a drop of nearly 4 million barrels in Crude Oil Inventories and warnings of the approaching Hurricane. Lifted WTI Oil prices to $70.37bbl before giving up gains to 69.33 by the time of print, it was down 1.44% trading in a range of 69.06-70.28

XAU/USD was indecisive trading up and down between 1,203.45-1207.31, Silver and Copper were also indecisive.

The Cryptocurrencies are demonstration signs of a short rival with almost 85% of all tokens with a bullish undertone.

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The US Continues To Throw Punches

Last week’s market bloodbath left many participants scared. However, with the weekend taken to reflect on the effects and actions which eroded some notable positions. The US continues to throw punches.

Some brave traders are at the helm ready to stir to profits amid the turbulent market conditions Investors held on to their wallets, prudent to avoid getting caught, should US President Trump decide to effect the threats of tariffs of $200 billion worth of Chinese imported goods. Beijing has vowed to retaliate should this become an eventuality. Putting Market participants on a cautious lookout.

Meanwhile, the DXY retains a bullish sideways look between 95.10-95.28 evidence of the USD apparent strength against other majors such as the EUR. GBP, AUD & CHF, JPY the safe haven currencies all saw a petite sell-off. While currencies of Emerging Markets grasps unto straws for dear life.

Global Stocks:  Got punch in the “Nini” with Asian stocks down to 14 months’ lows as investors stay clear of any crossfire in the trade tiffs between the US and China.EU Shares are likely to be mixed to the upside.

  • Germany30 was spotted up 0.45%  between 11,979.18 – 12,031.08
  • While France40 rose 0.84% to ranging from 5,293.62 – 5,326.73 with more up winds
  • While The UK100 had also turned bullish trading up  0.12% from. 7,264.01 – 7,290.25
  • Italy40 Likewise rose 0.39%  by the time of print 08:15 GMT to trade between 20,810.00 – 20,945.00.

Seasoned traders will also pay attention to news from the Tech Industry. with rumors of Apple’s announcement today of its biggest phone yet.

Commodities are also unstable with many jumping in and out of gains Gold was the most notable loser Wednesday set in a course from 1,197.80 – 1,203.90.

XAU/USD was down 0.21% oscillating between 1,192.81 – 1,198.73

Crude oil WTI: With Traders on the lookout for today’s EIA, Crude Oil Inventories report, coupled with Tuesday’ API stockpile report, suggesting a draw in stockpile levels. Have bolstered oil prices even so the excitement around the Hurricane Florence. Is adding to the volatility.

FX Market:

  • 98. 4% of Market participants seem to believe the Fed will raise interest rates to come 26th September 2018 most investors are long on the USD.
  • The EUR/USD was caught swinging from 1.1527 – 1.1650 in a sideways lockdown.
  • GBP/USD: The pressure is still on the GBP as Brexit talks and negotiations linger.
  • The pair was seen trending 1.2994 – 1.3048 sensitive to any talks for or against
  • Emerging Currencies such as TRY, MXN, remain battered.

Cryptocurrencies:

After small Hawkish uptrends, the cryptocurrencies are down again BTC/USD was seen a 6,230.0

US Jobs Report Amid Falling Global Stocks

Following Thursdays Market bloodbath. Traders are still on edge, however, looking to decipher the throng of economic reports coming out of the Euro-zone and later at the US jobs report for direction. On the financial calendar docket due to be released are the following: The French Industrial Production (MoM), Italian Retail Sales (MoM), UK’s Halifax House Price Index (MoM) followed by the EUR’s GDP Euro-group meetings. Then a deluge of US reports namely, Non-farm payrolls. Amid speeches from some FOMC members like Mester, and Kaplan, Canada will also report on its Ivey PMI.

Commodities:  In the commodities arena, the Metals and Oil were seen correcting to the upside following their slide the previous day.

Crude oil WTI was seen between 67.70 – 68.08 up 0.31% by the time of print 08:35 GMT.

Although the EIA, reported a draw of – 4.302M vs the estimated -1.294M prices dropped almost to the $66 bbl before making correction ahead the EU Market open. Price sagged due as result of 1. A built-in Gasoline Inventories, 2. Emerging Market woes, 3. Trade tariffs saga and 4. India and China’s wish to pursue Iranian Oil despite the US-led sanctions. Currently, prices are bullish ahead of the Baker Hughes Rig Count which stands at 864

The Gold spot rallies cautiously between 1,203.60 – 1,209.00. as the USD takes a breather ahead of the NFP reports. While the XAU/USD jumps in and out of gains from 1,198.42 – 1,203.59. Silver and Copper were unable to get out of the bearish zone.

Global Stocks: After the bloodbath the market was plunged into, due to impending or possible enactment of the $200 billion which President Trump is considering to impose on Chinese goods, a stalemate between Canada & US on the NAFTA retweaking, and Trade tensions in Europe amid driving the Tech giants like Facebook, Twitter and Amazon amongst others to testify before Congress and the plunge of Nike stocks since the Colin Kaepernicks promotion has rattled Global markets not to mention. The dire situation with emerging markets.

  • Germany30 was trying to remain hopeful up 0.07% at the time of print 08:35GMT at 11,964 and ranging from 11,902.31 – 11,990.63. Investors were hoping German Industrial Production reports and others may lift stocks. This remains to be seen.
  • The France40 had risen 0.19%  to 5,254.34 and trending between 5,227.50 – 5,266.63
  • While The UK100 could not hold its head above water for too long at 7,318.27.00 range bound between 7,268.17 – 7,329.25.
  • Italy40 Opened at 20,563.50 however soon found support and resistance between 20,407.50 – 20,598.50.

The earlier rise in the EU shares may not last, as investors aim to take profits before the weekend and fears of heightening trade tiffs plague sentiment. Asians shocks are still in bearish terrain. and the 7 companies reporting on Q2 earnings are likely not going to have any major impact.

FX Market:

Thursday’s Economic reports from the US were mostly disappointing. The ADP Nonfarm Employment Change came in at 163,000 vs. the estimated 188,000 this report which is usually correlated to the NFP, may have dampened investors mood to seek other avenues.

  • The EUR/USD was up 0.18% at 1.1645 with lows of 1.1614 and highs at 1.1649 in case the EU GDP report comes in negative while USD gains support, the EUR may be seen shedding gains. Unless some other EU factors grant support.
  • GBP/USD was also up awaiting reports from Halifax House Price Index. Trading up 0.10% at 1.2939 ranging from 1.2914-1.2948. GBP is still vulnerable to Brexit uncertainties. A surprise boost could still be in play should there be any positive headwinds via the Chief Brexit negotiators office.
  • USD/JPY: was stuck in the 110 zones Oscillating between 110.38-110.75 as investors fled the USD. Anything is possible at this stage thus caution must be exercised.
  • USD/MXN  has been indecisive in a range of 19.1221 – 19.2745 once again volatility is a play.
  • USD/TRY   was spotted shedding heading down into a downward trajectory from 6.6072- 6.4151.

Cryptocurrencies:

About 87% of the tokens were bullish XRP, Ripple was adopted by TransferGO a London based crossed border payment solution elevating share prices. Other Currencies were looking for support.

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Global Markets Swimming in Blood Red

Today Global Markets are swimming in blood red.
Yesterday Market Participants were caught by surprise as Brainer UK’s Chief Brexit negotiator revealed that there seems to be a breakthrough. The excitement soothes trader sentiments who choose to go long on the GBP and EUR. Naturally, the rumor only addresses relations with Germany and not with all EU.

FX Market:

Despite the USD letting out a little steam it still remains supported ahead of today’s ADP, ISM, and Crude Oil Inventories among other reports. The bruised emerging Markets have not yet been able to fully recover  USD/MXN  was bearish, down 0.21% and ranging between 19.4462-19.3014. Highlighting the slight weakness in the USD.  However, with USD/TRY the opposite is seen in which USD is bullish, the pair stood at 6.6185 up 0.25% trending 6.5696 – 6.6400, by the time of print 08:15 GMT.

For the Major Currencies:

AUD/USD  once again rose briefly on the surplus trade balance of 1.551B. however quickly drop down to trade between  0.7166 – 0.7211 some corrections are still in the pipelines if the USD fails to gather momentum. Following the release of today’s reports

EUR and GBP stand defiant against the USD jumping in and out of gains in search of support.  The EUR/USD  by the time of print 08:15 GMT,  was seen at 1.1614 – 1.1659 up 0.07% and looking very volatile it could head down or up any moment.

meanwhile, GBP/USD  tries to hold on to 1.29 threshold seen up 0.12% at 1.2921. oscillating between1.2896 – 1.2929.

Commodities:

The Commodities arena is mixed, on one hand. Gold prices rally silently for nearly 3 days as some market participants opt to hedge their investments in these volatile times. While Oil prices remain capricious hit by US-led sanctions and supply constraints.

The Gold spot was seen up 0.51% in trading from 1,201.10 – 1,208.80. XAU/USD was also up trending between 1,195.90 – 1,203.27 a rally of 0.43% was recorded.

Crude oil WTI was seen between  68.42 – 68.78 and very sensitive to move in either direction. Depending on the Crude Oil inventories from the EIA today as well as any development with the ongoing sanctions. Meanwhile, US and India are in consultations to iron out what, India’s position is on continuing to purchase Iran Oil an how it could affect policies between the two nations.

Global Stocks: are mostly in red as Asia lingers on. EU shares also plummetting. with trade war cited as the culprit.

Germany 30, UK100, Italy 40 and France 40 are all bearish hitting 5-month lows.

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The US Dollar Rocks On, Trade Tensions Rock The Market

Ongoing Trade tensions and resolutions to better the US-Canadian relationship in the NAFTA agreement as well as Oil supply constraints amid looming sanctions drives market sentiment.

Emerging markets have been battered lately to the brink of dissolution for some countries triggering what seems to be a massive selloff or deprections of thier currencies.

FX Market:

In tandem to Tuesday’s post, the USD has retained its superiority over a deluge of global currencies. Almost all currency pairs in which the USD is the base currency or prefix is bullish. EM currencies, like the ZAR, are now reporting a recession.

The USD climbed vs the ZAR by 1.59% trading between 15.2606 – 15.6967. At the time of print. 09:00 GMT. USD/TRY was also up 0.36% while USD/MXN  was seen up 0.87%.  Evidence of The USD strength is reflected in the US Dollar Index, (DXY), which is ranging from 95.28 – 95.66.

AUD/USD was up earlier this morning prior to the EU market open, due to better than expected GDP reports. However, the AUD quickly lost ground and the USD trail blazed.

Naturally, the EUR/USD which is near its daily support level at 1.1544 tried to stage an unsuccessful comeback struggling at 1.1582, between 1.1544 – 1.1608 to the downside.

GBP/USD. Has not been able to remove the albatross of Brexit around its neck. News of BOE Governor Mark Carney agreeing to stay on for another year seems to have no effect. The pair were seen trading between 1.2786 – 1.2870 down 0.43%

Commodities:

Commodities were also pushed to the brink as the USD firmed its stance ahead Thursday’s ADP report. Oscillating between small gains and losses.  Gold was seen as trending between 1,196.40 – 1,201.20, Silver is trending between 14.125 – 14.210. WTI Oil which surged on Tuesday beyond the $71 threshold due to warning of Hurricane Gordon eminent approach did not last more but for a few hours. Upon reports that the storm’s intensity was less harsh than previously thought WTI Crude Oil prices began its descent.  Spotted trending down between 68.69 – 69.57.

Global Stocks: Were all in the red, as in negative territory. Confounded by trade tensions and disappointment from the tech Industry as US President Trump up the pressure on tech giants in the FAANG group.

Germany 30:  fell to trade in a narrow range from 12,168.56 – 12,077.69.   UK 100: was also down trotting shedding 0.39% trading from 7,453.2 –  7,410.5. France 40   dropped 0.86% swinging between 5,266.65 – 5,324.00 Italy 40:  which was the only one up post-Tuesday’s market close also succumbed to pressure bowing with the rest however likely to resurge. The Index was seen traversing from 20,494.50 – 20,877.50

Even with some 27 companies announcing their Q2 earnings report amongst them are Verint Systems Inc.( VRNT), DocuSign Inc,( DOCU) and Verifone Systems Inc.( PAY) to name a few. However, Analysts are under the impression that their collective efforts may not be enough to boost the Wall Street significantly enough to flow to the Asian Market to resound in the EU Markets. Unfortunately the recent Nike promotion and Facebooks plight are not doing any justice to the the markets either.

Meanwhile, the Philippines are considering the possibility to legalize crypto trading and transactions for BTC. about 68% of the tokens were seen up. However, volatility is in full play as some investors intend to capitalize on Friday’s US. NFP.

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Is the USD & Markets Back In Full Throttle?

With US and Canada back from their one-day vacation, the Market is in full throttle. Investors and traders are on risk-on mood opting to capitalize on some of the riskier assets which spells out demand for the USD and a move away from the safer havens.

FX Market:

Although Emerging Markets are still cringing. With TRY, MXN gasping for some air. The USD consolidates its stance, As investors, prepare for Friday’s jobs report for more direction.  The DXY was up 0.34% trading from 95.14 – 95.47

EUR/USD fell from its previous day’s gains, however, remains in a familiar range between 1.1564 – 1.1627 down 0.46% at 1.1568 by the time of print at 08:00 GMT. Further downside is contained around current support level with a standard deviation of 0.25% approx.

With the USD up all other majors are in bearish mode. AUD/USD down 0.53% to trade between 0.7172 – 0.7235.  GBP/USD plummets 0.51% oscillating between 1.2875- 1.2824

Commodities:

Most of the commodities reversed gains except for the WTI Oil which surged due to supply constraints ensue by the announcement of Hurricane, “Gordon” which has forced several Gulf of Mexico Oil platforms and rigs to shut down due to safety concerns. |WTI Crude Oil was trading from 69.98-70.44 with possible uptrends crossing the $71.00 bbl mark. If warnings of the hurricane are to intensify. However, price may remain in check as India and China look to buy oil from Iran.

Gold, Copper, Silver, were in a dovish trajectory.

Global Stocks: Although trade tension continue to dominate, China’s tweaking of its economy boosted the Chinese market with a tinge of optimism for Asian Shares with about 17 Companies releasing Q2 earnings reports EU stocks are seen up trending amid sudden swings as investors wait for today’s EU, PPI reports due for release together with the UK’s inflation report and other economic reports from the US.

Germany 30:  is set in a range from 12,311.40 – 12,403.91 at 12,388.04 by time of print 08:00 GMT. Abrupt swings are expected in either direction. to set in late during the European Market session.   UK 100: The UK market has been bullish for  two straight days trending from 7,500.09 – 7,534.75. up 0.12%   France 40  rose moderately 5,385.02 – 5,428.22 while  Italy 40: also moved up since Monday, ranging from 20,455.00 – 20,645.00

As Market participant embraces for the day’s tango movement the surprise will be coming from the usual suspects i.e. Trade Tariffs rhetoric and impact of the hurricane in the US which has already forced some 300,000 homes and office to fold up to safety.

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