Page 125 – XTrade

A Big Week for Q3 Earnings Report In A Respite Market

It’s a big week for Q3 earnings report amid a respite market. As the week starts with a storm of events likely to push markets to their limits. With about 150 companies releasing their earnings reports, Amid Fed Speeches, reactions to the Italian budgetary woes which weighs on the EU. Contemplations on the progress of the Brexit saga and deliberations of the murdered Journalist at the Saudi Embassy in Turkey.

Global Stocks:

Asian Stocks reversed losses, as China tweaks it’s the economy again uplifting the market and spreading the optimism to Europe which had a boost to its shares helped by Italian Banks. As Moody’s kept the outlook of Italian sovereign stable. Meanwhile, the EURO STOXX were seen up 0.4% at the time of print 07:50 GMT while the US looks forward to upbeat sentiments to boot stocks as yields take a break. It could be very disappointing should the earnings fail.

US 30: Wall Street is counting on some of the companies reporting today to elevate the stocks of the US30 which was seen trading up 0.17% between 25,279.0 – 25,539.0
DXY: The Dollar Index began the day on a positive footing demonstrating it strengthen against a basket of other currencies however analysts expect volatility to kick in as the capping upside gains to remain in a range of 95.47 – 95.76 swings between small gains and losses.
Italy 40: Which captures about 80% of the Italian Domestic market posted some gains after a series of a downward trajectory. However, by the time of print had been registering gains as the Italian government hints that it is ready to talk about the budgetary issues. Up 0.58% trending from19,107.50 – 19,457.50
UK100: was up 0.19% as Brexit deliberations cool off a bit, to range from 7,051.25 – 7,082.79
Germany30: Carries some of the heavyweights in the German Frankfurt Stock exchange such as BMW, and VW and Deutsche Bank to name a few analysts are looking forward to a bullish day for the Stocks which were spotted up 0.50% oscillating from 11,609.18 -11,676.47.

Currencies:

EUR/USD: The condition of the EUR remains similar to Friday. The USD remains relatively high and thus any headwinds seem checked it is even feared ECB actions may pull the EUR down. Amid US rate hikes. The resistant level for today was seen at – 1.1550 while support levels set to 1.1498. ranging in and out of gains.
GBP/USD: The Pair is still struggling between 1.3047 – 1.3090 jumping in and out of loses.
USD/JPY: The Yen has remained challenged by the USD where the pair were seen trading from 112.35 -112.78 up 0.19%

Commodities:

Oil: On Friday the Baker Hughes Rig Count came out to 873 from 869 the rise of 3 more rigs amid increased crude oil inventories kept prices below the $70 bbl. However, the week began with investors pondering on the approaching US-led Iranian sanctions. Talks of this are likely to create volatility and stem prices a bit higher today WTI crude oil price was seen up 0.67% in a range from 69.19 – 69.83. Unless investors are spooked with more negative concerns then Oil price may drop to 68.60 or below before any correction.
XAU/USD: Gold has been surging amid all the market commotions at times acting as a safe haven and at time buyers take advantage of sudden drops, to buy the precious metal for the upcoming Diwali celebrations. The pair is likely to range between 1,222.74 – 1,229.63 dropping when the USD is tightened and surging on any worrisome news.

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

https://www.cnbc.com/2018/10/22/asia-markets-china-economy-australia-politics-currencies-in-focus.html

https://www.investing.com/analysis/what-can-bite-you-this-week-200349585

The USD Is Not Ready To Chillax Over the Weekend.

The USD does not seem ready to chillax over the weekend.

As investors prepare to break for the weekend and profit taking China steps in to revive its economy. The Financial injection has been branded to be effective as Asian Stocks reverse losses, boosting morale in Europe amid uncertainties from Italy which weighs on the bloc. However, the USD parades on.

Global Stocks: Are not entirely out of the woods yet with the US Yields up and Italian bonds climbing, stocks have taken a back seat. Investors are cautious yet exploring unconventional ways to benefit from the current market uproar.

US 30: Opened at 25,398.0 up 0.14% by the time of print 08:45 GMT gaining hawkish wings with the hope that some of the 24 companies releasing their earnings reports today may lift wall street. Which is currently trading at 25,416.0 to range from 25,353.0 – 25,486.0

DXY: With the USD climbing on Fed minutes the DXY was spotted surging by 0.13% to 96.02 and determined to tread a course between 95.90 – 96.09

Italy 40: Has been shedding gains opening at 18,957.50 and climbing to highs of 19,097.50 only to lose steam and fall back as market participants put on their “Black Hats” considering why Italy’s budgetary initiative pose a danger to the bloc the current support line lies at 18,705.00

UK100: As you know the FTSE100 aka UK100 is usually in an inverse correlation to the GBP as the GBP attempts to crawl out of losses the Stocks are pressured amid stagnations in the Brexit negotiations, trading sideways in between 7,012.25 – 7,052.75

Germany30: Is very touchy seen at 11,597.26 up 0.07%. Set in a range from 11,516.13 – 11,617.89 It should not be surprising to witness a sudden downward spiral.

Currencies:

EUR/USD: With the USD up the EUR could not hold on to gains consistently. Ranging in and out of gains from 1.1433 – 1.1469.

GBP/USD: The pair grasping to hold on to the previous day’s gains bullish in a tight range from 1.3011 – 1.3047 and standing mostly around 1.3030 ahead of the BOE’s governor Mark Carney’s Speech later on today.

USD/JPY: Appetite for risk on is appealing as the USD climbs Vs. JPY from 112.14 –112.54 the safe haven lost its grounds.

Commodities:

Oil: WTI Crude prices although trying to recover from recent loss remains tightly locked in a range between 68.56 – 69.13 up 0.39% from the open price of 68.69. Investors are poised to decipher the Baker Hughes Rig Count for further direction.

XAU/USD: The precious metal rose vs the USD to trade up 0.20% in a trend ranging from 1,223.22 – 1,229.55.

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

https://www.investing.com/news/stock-market-news/european-stocks-claw-back-losses-weak-outlooks-dent-michelin-bouygues-1651024

https://www.investing.com/news/economy-news/top-5-things-to-know-in-the-market-on-friday-1651110

The Hiatus in Brexit & Sino-US Saga Weighs on Market

The Hiatus in Brexit & Sino-US Saga Weighs on the Market, with the 55 hours Brexit summit in progress, the GBP seems pressure as the “BackStop” negotiations is waded through. Michel Brainer European Chief Negotiator asks for more time for the UK to prepare. Meanwhile, the US Fed minutes on Wednesday ignored President Trump’s criticism that the FOMC is raising rates too fast. Fed Chair J. Powell affirmed that the economy was doing well and allows for further tightening.

Global Stocks: Asian shares area down trotting with the US-China Trade spats in on a hiatus. The US avoided labeling China as a Currency Manipulator acknowledging the PBOC involvement has been grossly limited. There is no doubt the devaluation of the Chinese Yuan is a cause of concern to the US. As the USD becomes stronger it becomes expensive doing business with the US. Consumer out of the US will tend to look elsewhere for competitive prices making China a favorable option.

US 30: Was disappointing as the earnings reports were unable to lift wall street as expected Wednesday. Yields continued to surge bolstered by Fed minutes. The shares were down 70 pips ranging between 25,479.16 – 25,810.09 by 11:00 GMT and likely to close flat should today’s earnings reports fail to cause a rally.
Germany30: Began its ascend as EU stocks The surged was helped by Carrefour, and Novartis to name a few. Trading from 11,685.08 – 11,791.25 and up 0.02% with an upside trajectory.
Italy 40: Struggles to get its footing right into a stable bullish angle, seen trading between 19,322.50 – 19,542.50 and down 1.74% as the Budgetary saga weighs on future stocks.
UK100: Is with a dismal outlook ranging between 7,038.00 – 7,078.65 as investors digest the consequences of the Brexit summit.
DXY: Was easing up allowing room to be challenged trading in a downward spiral from 95.78 – 95.49 down 0.02%

Currencies:

EUR/USD: After plummeting on Wednesday the EUR gains grounds with bullish undertones the pair was spotted up 0.08% at 1.1511 ranging from 1.1482 – 1.1527
GBP/USD: Attempted a mild recovery following the GBP loss on disappointing inflation data Wednesday and Brexit talks albeit trending a dovish path between, highs of 1.3132 – 1.3076
USD/JPY: USD is mostly steady vs. the JPY trading in a narrow range in and out of gains between 112.02 – 112.73.

Commodities:

Oil: The EIA reported a surge of nearly 6.5 million barrels in the US WTI crude inventories. This naturally pulled prices down to range from 70.00 – 68.56 down 1.25%
XAU/USD: Gold prices remain prone to risk on – risk off factors. Investors continue to hedge while and Diwali celebrations get closer. The pair was trading between 1,218.80 – 1,226.32 with hawkish wings.

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

https://www.poundsterlinglive.com/gbp-live-today

https://www.cnbc.com/2018/10/18/european-markets-investors-monitor-earnings-as-brexit-talks-rumble-on.html

The Brexit, Fed Rate, & Oil Inventories Combo

The Day is set to be a very active one with a number of high profile events on the financial calendar, namely the Brexit summit in Brussels, The Fed Interest rate minutes, releases of earnings reports from some 54 entities or companies, Crude Oil Inventories report by the EIA and a deluge of Microeconomic factors plaguing The GBP, EUR and emerging markets amid the Sino-US trade tensions.

Brexit the divorce of the UK from the EU makes more headlines with the Brussels summit set for 17^th-18^th October. Investors are poised to strategies and profit from the outcome. Could this have the magnitude, the Brexit referendum had in June 2016 shedding nearly $2.5 trillion in global markets, remains to be seen. By the time of print 1:00 GMT, UK100 was bullish ranging from 7,055.41 – 7,088.00 while the GBP plummeted vs. EUR and USD.

Global Stocks: Global shares were in a limbo reacting to the aforementioned events.

US 30: By mid-day GMT the shares were dovish down 0.52% trading in reverse between 25,626.0 – 25,845.0 although analyst predicts wall street is likely to open lower optimistic market participants are counting on Earning report to elevate the stocks. Which may be lingering due to the fed minutes o tap. Just like Netflix boosted stocks yesterday markets remain hopeful.
Germany30: Once again began the day optimistic opening higher at 11,822.71 however fizzed at a resistance point of 11,847.16 to head down 0.24% current support levels are at 11,688.36 with more downside in view before any corrections are seen.
Italy 40: has been oscillating between 19,857.50 – 19,445.00 nose diving 0.89% towards its support levels.
UK100: Started the day with an upbeat mood ranging from 7,052.26 – 7,088.00. however, with the financial calendar laced with CPI and PPI reports not to mention the Bank of England’s FPC minutes down ward pull will not be surprising.
DXY: With the Fed minutes ahead the DXY consolidated up 0.31% at 95.34 and ranging from 95.06 – 95.46.

Currencies:

EUR/USD: With the USD climbing the EUR took a back seat. Pair was trading down 0.31% between 1.1580 – 1.1521 amid the EU’s release of its economic forecast and CPI reports which could upset any uptrends for the EUR.
GBP/USD: Brexit deliberations begin with a dinner tonight some cautious traders are on the sidelines waiting of better clarity while others short the GBP in fear of another 24th June 2016 plunge after the Brexit vote which saw global stocks down to 31-year lows. The pair has been dovish all day down 0.37% in a range from highs of 1.3193 in between lows of 1.3100.
USD/JPY: Since in connection to Tuesday’s posts the USD continues to rally vs. the JPY in a risk-on mood. Perhaps in anticipation that the FED statements after the Interest rate decision may lead to further bullish trends even if the stand pat.
USD/TRY gained some confidence after Goldman Sachs and Societe Generale were called upon to advise on the sale of Turkish 5-year bonds and received tripe fold on the $ 2 billion denominated bonds. The USD took a break as the TRY rallied. The pair was seen between 0.96% down 5.6204 – 5.7172

Commodities:

Oil: As Market Participants and oil traders wait for the crude oil inventories numbers to come in. WTI prices fell 1.60% to a range between 70.61 – 72.44. Iraq OPEC’s second largest Oil producer has it marketing team known as SOMO inquiring to know the final destination of its exported oil to curb cargo resales amid uncertainties as the US racks up it shale production. Prices may be forced further down before any correction come to play.
Nickel: Seems to be adopting the habit of opening high and receding as the day progresses. Opening at 12,527.50 and to trend between 12,467.50 – 12,602.50 the expectation is a downward spiral by the end of the day with 25-35 pips down from it open.
XAU/USD: Although Gold was bearish, it is presumed to rise during the day as some “prudent” investors buy the precious metal to hedge should the USD begin a sudden descent. The XAU/USD pair were up 0.29% ranging from 1,220.68 -1,229.56.
Silver: Sliver was unable to tag along gold remaining dovish and ranging from 14.615 – 14.750.

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

https://www.investing.com/news/commodities-news/opecs-no-2-producer-wants-to-know-how-buyers-use-its-oil-1647683

Brexit Tailgating Fizzy’s GBP

The GBP is fizzy, as Brussels prepares for a two-day summit to discuss Britain’s readiness for the Brexit. Investors and Traders are also ready to capitalize on this asset.

The UK’s divorce from the European Union and its trades agreements has become known as the Brexit. The Separation was set into motion following the June 23rd, 2016 referendum with a deadline for a final withdrawal by 29th March 2019.

During this period the UK has attempted to enter into numerous alternative trade agreements with individual nations as well as with the EU as a whole. When negotiations seem favorable the GBP rose and when not the GBP plummeted.

The apparent discussion is whether the UK is to exit the EU on a Soft note (SOFT BREXIT) or Hard Note (HARD BREXIT) or a combination of both.

The Soft Brexit is favored by those who voted “IN” at the referendum, which implies the UK leaves, however, remains closely aligned to the EU. Thereby keeping any disruption to businesses and trade at a minimal in which the UK will be bound by EU regulations yet unable to legislate.

Hard Brexit is a favored by all those who voted for the UK to “LEAVE” the EU cutting all restrictive ties to form new and better ones. In reality, it seems the Exit may be a mixture of both forms. The negotiations and lack of clarity have preyed on Investors sentiments. At the moment any news that comes out with a positive outlook is hailed to be a propelling factor in moving the trends upwards, while at times news of stagnation sends ripples down the charts.

Market Participants are poised on capitalizing on the outcome from the two-day summit from the 17th-18th October 2018 as should detail the course of events leading up to the actual exit. and perhaps insights to the GBP reaction. Nearly two and half years ago panic from the Brexit as per analysts wiped away $ 2 Trillion from global markets and caused mayhem, among the negative jabs were:

1.Wall Street suffering its biggest fall in 10 months at the time.
2. The Bank of England was forced to pledge £250bn liquidity in an emergency counter-reaction to avert a recession.
3. European Markets were left hopelessly down trotting to which Moody’s financial services gave a negative outlook for the GBP.

By the time of print GBP/USD was seen down 0.31% in a range from 1.3193 – 1.3126 further downsides maybe in view.

Meanwhile, UK100 is bullish in a range 7,055.41 – 7,088.00. Should the EU give up on Britain, for failing to bring fresh ideas to the table investors may scramble to take cover elsewhere and the UK may be forced to pay about $36billion upon exiting the EU.

Volatility and uncertainties plague sentiments yet for those attentive the rewards for daring may be highly warranted.

The USD Amid Brexit Finalization & Earnings Reports

The USD amid Brexit finialzation summit, rose against a basket of currencies although in classical Tuesday Tango reversals and corrections may well be part of today’s action. Ahead of Wednesday’s fed rate decision to which the market is under impression that the FOMC may stand pat. However, the reasoning behind the decision will be closely monitored for insights into the future yield curve amid concerns over the Chinese and US Trade frictions.

Global Stocks:

Stocks were mixed in Asia and the same sentiment resonates across EU shares although up from nearly two-year lows. US stocks look hopeful with about 36 companies releasing Q3 earnings reports. Including Netflix Inc. (NFLX), Goldman Sachs Group Inc. (GS) Morgan Stanley. (MS) Domino’s Pizza Inc.(DPZ), BlackRock Inc.(BLK) and several others.

Wall Street failed to post substantial gains Monday as The Tech industry led by Apple stroke investors sentiments negatively. However today the expectation is for a rally.

US 30: Was seen bullish at the time of print 08:11 GMT up 0.33% at 25,285.0 to trade between 25,167.0 – 25,307.0.

Germany30: Opened its trading day with an upward gap 11,638.09 vs it close of 11,614.16 by the time of print it was 0.40% up at 11,660.50 trading between 11,606.36 – 11,671.87.

Italy 40: Was seen struggling to rise, analyst, today could be a hawkish day for the asset, seem ranging from 19,187.50 – 19,522.50.

UK100: Was still struggling 0.29% down at 7,009.00 and swings from 7,034.25 – 7,007.75. Brexit deliberations weighs

DXY: Was bearish at 94.99 down 0.07% between 94.97 – 95.20. Conspicuously parading the USD’s weakness.

Currencies:

EUR/USD: Was seen wobbly in the early hours as the USD gained momentum the EUR dropped the expectation of the median range is between 1.1566 – 1.1599.

GBP/USD: Has been hawkish up 0.26% at 1.3187 ahead of the Wednesday Brexit deliberations which is said to be the latest in which a Brexit deal could be finalized. The pair swing between 1.3141 – 1.3197

USD/JPY: The USD rose against the JPY 0.31% up trend between 111.73 – 112.17.

Commodities:

Oil: Springing off from Monday’s post, WTI Crude prices seem to be boxed in a range between 71.03 – 72.04 down 0.70% at 71.28 at the time of print, and ahead of today’s API Crude Oil stockpiles. Some Analyst believe the Khashoggi case, could elevate tensions between the US& Saudi Arabia and as a consequence rise oil prices.

Nickel: the losses continue after opening slightly higher at 12,600 the current situation is dismal for Nickel today down 1.03% from 12,632.50 – 12,397.50

XAU/USD: Some investors are not only taking advance of the uncertainties but also banking on upcoming social events like the Diwali celebrations. The pair was spotted 0.21% up ranging from1,225.09 – 1,230.26.

Silver: Tags along XAU in uptrends ranging from 14.645 – 14.775

Copper: contracts as Sino-US tiffs weighs on the Chinese economy.

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

https://www.cnbc.com/2018/10/16/saudi-arabia-could-spike-oil-prices-over-journalist-case–but-it-would-backfire.html

https://www.bankofengland.co.uk/-/media/boe/files/stress-testing/2018/stress-testing-the-uk-banking-system-key-elements-of-the-2018-stress-test.pdf?la=en&hash=6A00F3E28248411FF638A2E55B6060B2FBB882A1