BOJ Stays Pat, Commodities Down, FX Jingles

As reported in previous articles, The BOJ, Bank of Japan left its Interest rate unchanged at -0.1% with a “Forwarding Guidance” to keep short and long-term rates very low for as long as needed. This and the fact that almost all the Economic Indicators, such as Industrial Production, Unemployment Rate fell short of market expectation. Naturally, the Safe-Heaven Yen was down.

Global Stocks:

Global stocks were down trotting, dragged down by the shadow of Tech companies plight. To name a few will include FB, BABA, NETFLIX & GOOG.

However, by the end of Asian and the open of EU markets, in classic Tuesday Tango day, EU Shares began staging a comeback. Perhaps the Hawkish sentiment stems from prospects of some 229, Q2 Earning Reports being released today. Proctor & Gamble. (PG), Cummins Inc. (CMI), Apple Inc. (AAPL), & Baidu, Inc. (BIDU).

By the time of print 09:00 GMT, Germany 30, had risen 0.13% to 12,817.95 with lows at 12,738.79 and highs of 12,826.85.

France 40, was attempting to hold onto gains at 5,490.56 in a tight range from 5,477.81 – 5,497.66

Italy 40 saw a significate surge of 0.79 % to 22,075.00, helped by upbeat Consumer Price Index, (CPI) and Harmonized Index of Consumer Prices (HICP), more up winds are forecast.

UK 100 did not sit on the sidelines, rallying 0.18% in a range from 7,696.75 – 7,717.25

Currencies:

  • The Currency arena today is vibrant volatility abound, and the norms of inverse correlations with the USD is somewhat thwarted. With the JPY down, the USD stood up. USD/JPY was up 0.39% at 50, trading near current resistance levels of 111.59
  • Interestingly the EUR/USD is bullish, up 0.16% in a range of 1.1700 – 1.1731 due to upbeat economic reports, despite the fact that German data fell short.
  • GBP also retracted from yesterday’s gains temporally hit by disappointing consumer confidence. Recovers almost immediately as about 90% of marketers prices in the BOE impending rate hike. GBP/USD was bullish ranging in between 1.3114 – 1.3163

Commodities:

Although the DXY was relatively muted in a range of 94.23 – 94.46. Almost all commodities were spotted in a downtrend

  • Crude Oil WTI was down 0.54% sliding from 70.22-69.22 then slightly up at 69.75 head of today’s API report which some analysts suggest there could be a surprise buildup in stockpiles.
  • Gold Spot fell 0.29% ranging between 1,216.70 – 1,222.10, as Silver, Copper, Aluminum and Nickel flow the suit down.

Cryptocurrencies;

  • Cryptocurrency seems to be shifting sides at the moment acting in tandem with Commodities out of the top 100 tokens nearly 83% of them are down.
  • BTC/USD sheds 1.84% with more room for downtrends the current range was from 7,861.2 – 8,227.2.

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Another Active Week Featuring 156 Earning Reports!

A new week teaming with Central Banks deliberations, more Q2 earnings reports, US-China Trade saga looming, Oil shenanigans, Brexit rollercoasters. and US Jobs Report i.e. NFP, & ADP.  In light of all the possible market movers, let’s see how they impact various sections in the market.

Global Stocks:

Asian shares are in a bearish mood. Except for the Indian Stocks which hit record highs. The drop was ensued by the significant loose falling the Earning Report of some major tech companies among them FB, Twitter, an even Google.

The Plunge in US stocks affect the Asian market and spilled to the EU Markets as well.  Korean KOSPI was down 0.06% Japan 225 down 0.74% should the Bank of Japan, BOJ choose to constrict its asset purchasing program of nearly $720 billion per month as widely expected this week, the values of its Government bonds may fall. Pressuring the Yen to drop in tandem before any correction.

On the docket the Fed are also set for their meeting this week, hits for forwarding guidance is expected to point to another rate hike in September.

The Bank of England, BOE is also expected to stick to its plans of a rate hike on the 2nd of August and hinted by Governor Mark Carney.

  • UK100 was bullish this morning until it joined the rest on the European shares down 0.03%, however, a comeback is viewed as a possibility today.
  • Germany 30, was down 0.12% ranging from 12,814.65 – 12,849.48.
  • France 40, was spotted 0.19% down between 5,482.24 – 5,503.54.
  • Italy 40 did plunge 0.17% oscillating from 21,837.50 – 21,925.00.
  • US stocks have also been down trotting ahead of this today’s earning reports featuring nearly 156 companies in the Heavy Industry, Real Estate, and Providers of Financial Services.

Currencies:

  • In light of all the aforementioned, the currency arena is very active. USD the USD was slightly bullish to the Yen. USD/JPY was 0.03% up trending between 110.90 – 111.16.
  • GBP/USD has been hawkish, trading from 1.3098 – 1.3138, up 0.03% and stuck around the 1.3110, as markets prices in the upcoming possibility of a rate hike in two days.
  • The EUR also staged resilience against the USD. EUR/USD was up 0.20% ranging between 1.1648 – 1.1692.

Commodities:

WTI Oil has been in good moods. Traveling upstream 1.95% and climbing towards $70.bbl it remains to be seen if it could hold its ground in this range. 68.79 – 70.17

Gold and other Metals were subdued.

Cryptocurrencies;

BTC has been on fire recently crossing the 8k handle. With more bright new for other tokens like XRP and ETH as Nasdaq discusses cryptocurrencies meanwhile Bank of Australia tests Ethereum’s Block Chain Supply System. The Cryptos stood in the shed for a breath and perhaps in search of more clues for support.

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Closing The Week On A Positive Note For Some?..

As Market Participants get ready for the weekend coupled with some profit-taking, it is noteworthy to acknowledge the delivery of Q2 earnings report from some 61 companies such as; Chevron Corp.( CVX), Colgate-Palmolive Co. (CL), Exxon Mobil Corp. (XOM), Twitter Inc. (TWTR) to name but a few.

McDonald’s and Chipotle shares did beat market expectation.

An exhilarating week comes to a close as US President Trump hails victory on the EU from the Trump-Juncker meeting which, although details are still obscured, It did have a de-escalation of the Trade Tiffs to a degree between the US & EU. Which is not so with China Alphabet held on to gains however Facebook Inc. witnessed the steepest decline, a loss of nearly $150billion on a single day, Sadly a historic snag to range around 176.11. On a positive note, the Tech and Restaurants sector supported the US an EU stock. Today Shares from Oil and heavy industries are being watched for a positive close.

Global Stocks:

Global stocks were still mixed by Friday EU trading morning. Asian shares posted modest gains however Shanghai composite, for example, was down 0.30%.

Germany 30 is up 0.22% in a range of 12,816.56 – 12,855.64

France 40, was up 0.12% ranging from 5,475.77 – 5,493.56

Italy 40 was up 0.23% trending from 21,817.50 – 21,910.00.

The UK100 was up 0.21% oscillating between 7,671.25 – 7,697.79. Earnings reports are expected to support US stocks and spilling over to Asia & EU.

Currencies:

  • All in all, the currency arena has been fair. The USD has stood its ground for the most part of the week the EUR is in search of its center bot as investors ponder on ECB president Draghi’s comments for forwarding guidance after Interest rates were left unchanged.
  • EUR/USD was ranging with tepid gains and losses from 1.1636 – 1.1744.
  • GBP/USD is down 0.02% trending from 1.3091 – 1.3123.
  • The DXY rose 0.06% oscillating between 94.43 – 94.64 rendering support to the USD to surge against some other currencies as, the EUR, GBP, MXN, However, The USD took a back seat with JPY, TRY, IDR, CAD in the meantime.
  • The Chinese Yuan managed to maintain its value despite recent routs albeit still bearish.

Commodities:

Gold is still in a bearish mood stuck between 1,219.80 – 1,224.60.  XAU/USD was 0.15% down by 08:30GMT in a range of 1,219.90 – 1,225.39.

Head of today Baker Hughes rig count report Oil prices are in contraction mood after the surge, on Tuesday and Wednesday. WTI crude trade in the confinement of 69.28 – 69.67 down 0.39%.

Cryptocurrencies;

Cryptocurrencies also plummeted after an impressive week in which Bitcoin claimed beyond 8,200. Investors blame the selloff on profit-taking with a tinge of caution from spread betters.

Volatility remains abound yet contained.

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EU-US Trade Tiffs On Ice & Market Digests Earning Reports.

Another bout of about 290 earnings reports are due to be released prior and post the US open bell among some of the notable companies are:  McDonald’s Corp. ( MCD), CME Group Inc. (CME) and a bunch of Tech, Banking and Healthcare facilitates/ firms. Meanwhile, shares of Facebook Inc.(FB) plummeted nearly 25% of its value after earnings reports missed and executives voicing concerns of dwindling profit margins in lieu of upcoming security and privacy upgrades that need to be met.

Global Stocks:

Global stocks were supported Thursday, although Asian was mixed dragged buy a slighted weakness in the Chinese market. EU Markets on the other hand look poised to gather some unwinds. Following a well assessed and conclusive meeting yesterday with Trump and Juncker which could deescalate the Trade war tensions between the US & EU. By 07:45 GMT.

  • Germany 30, rose 1.33% to trade between, 12,696.58 – 12,778.17
  • France 40, was up 0.68% ranging from 5,454.96 – 5,468.05
  • Italy 40 spreads its wings in the sun trending between 21,672.50 – 21,750.00 up 0.60%
  • The UK100 joined the bullish group up 0.11% in a range bound from 7,649.75 – 7,685.75

Currencies:

  • The USD fell to two-week lows ahead of today’s Initial Jobless claims report which seems to suggest an expected increase of 215k. the DXY was down 0.19% at 94.18 by 07:45 GMT.
  • EUR was indecisive in early EU trading hours however with the ECB on tap to comment on its Interest Rate Decision today at 12:45 GMT. EUR/USD oscillating between 1.1665 – 1.1744 in and out of gains. Depending on the outcome of the ECB President Mario’ Draghi’s reasoning for forwarding guidance the EUR could plummet below current support levels of 1.1665 or exceed current resistance levels of 1.1744. expectations are kneeling towards a downside movement.

Commodities:

Despite the USD slipping, Gold has not been able to hold on to its grounds, swayed by ongoing Trade war rhetoric, Gold spot stood between 1,226.90 – 1,235.20 while XAU/USD.  1,227.07 -1,235.24, on a bearish path.

Oil prices have been increasing since Wednesday on a surprise drop in inventories WTI Crude oil prices were in a hawkish mood. Trending between 69.22 – 69.64 up 0.13%

Cryptocurrencies;

In recent days’ market participants and Crypto enthusiast witnessed uptrends within the top 100 tokens propelled by welcoming moves to embrace or accommodate the crypto transactions. However, BTC is correcting downwards a possible profit taking sign as we head for the weekend. BTC/USD were trading down 0.79% from 8,073.0 – 8,331.8.

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Oil Weekly Report Coupled with Trump-Juncker Meeting

Wednesday Asian markets were blissfully up, induced by the results of Tuesday’s Earnings reports. Despite AT&T’s fall out.

Today the market will be attentive to reports from some 244 companies amongst them are Facebook Inc. (FB), Brinks Co, (BCO), Qualcomm Inc. (QCOM), Wix.Com Ltd,( WIX) to name a few, as well as remaining in search  for clues that may come out of US President Trump and EU President Juncker’s meeting in what is seen as a possible attempt to avoid further escalation of EU-US Trade War rhetoric.

Europe nonetheless is seen optimistic with shares glowing, likely to shine on the EUR as well.

Global Stocks:

Wall Street ended up rising as predicted yesterday Asian stocks sailed on the news together with EU shares

  • Germany 30, was spotted struggling to maintain gains between 12,645.09 -2,693.83
  • France 40, was ranging from 5,437.88 – 5,452.25 up 0.13%
  • Italy 40 was also seen pressured swinging in and out of losses between 21,790.00 – 21,895.00
  • The UK100 was having a hard time down 0.79% in a range bound from 7,643.25 – 7,708.00

Currencies:

  • The EUR has been fairly bullish attempting corrections from recent highs. EUR fell from the 1.17 handle trading bullishly between 1.1676 – 1.1701
  • AUD/USD was down 0.05% at 0.7422
  • GBP/USD rose 0.11% to 1.3159 by 08:50GMT as news of PM Theresa May taking over Brexit negotiations dominated markets optimism.

Commodities:

  • Gold attempts to rise up 0.32% ranging between1,223.20 – 1,229.90
  • WTI Oil prices were bolstered from Tuesday’s API report suggesting a drop of nearly 2.3 million barrels. Crude Oil prices were up-trending between 68.47 – 68.92 up 0.15%

Cryptocurrencies:

Crypto continues piping upstream BTC was up 2.95% at 8,241 there are rest jumping in and out of gains.

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A Busy Day For Q2 Earnings Report Announcements.

Market Participants are looking forward to a more positive trading day than yesterday, with the Financial Calendar, teaming up with Economic events, coupled with some 126 Companies including Lockheed Martin Corp. (LMT), Harley-Davidson Inc. (HOG), and AT&T Inc. (T), delivering their earnings reports today. Volatility could almost be measured around the various times of release.

Global Stocks:

As per our summation yesterday, Despite, some of the popular companies missing their earnings targets, The Banking Sector and Alphabet Inc.’s impressive performance were able to inject life into the dwindling US Stocks electrifying other depressed markets,

China: Talks of stimulus to the Chinese economy lifted Asian shares to 1-month highs. Nearby the Japanese had also resorted to tweaking up their economic outlook to cushion the effects of the Trade war rhetoric.

Although EU shares were bearish this morning, investors and traders are expecting a “Tango Day” with positive undertones for EU-US stocks. As US Shares gains lift from the earnings announcements.

  • Germany 30, was up 0.51% in a range, from 12,583.80 – 12,625.41
  • France 40, was also up 0.80% trading between 5,389.77 – 5,423.16
  • Italy 40 was on fire up 1.09% ranging between 21,672.50 – 21,832.50
  • The UK100 also surged 0.63% to swing between 7,648.00 – 7,704.86

Currencies:

  • The USD regained back some of its lost stance, versus other currencies. With the EUR dipping, EUR/USD was down 0.08% from 1.1655 – 1.1705 upside swings have not been ruled out yet.
  • USD was still pulling the tug of war with JPY. albeit JPY was on the high ground. USD/JPY was ranging between 111.06 – 111.52 down 0.10% at the time of print 08:54.
  • Despite the USD’s consolidation, the dollar’s weakness is felt in some of the Exotic Currencies like the MXN where USD is trading 0.8% down the MXN.
  • GBP also stood taller than the USD perhaps ahead of the UK’s CBI Industrial Trends Orders. Which could keep the GBP supported or fall out of favor amid Brexit roller coaster burps, GBP/USD swings between 1.2995 – 1.3158 up 0.10%.

Commodities:

  • Gold prices extended losses and the USD regained a bit of its dignity. XAU/USD were trading from 1,218.20 – 1,225.60 dropping 0.11%
  • Oil prices are looking hopeful as investors await reports from the American Petroleum Institute API, to gauge current stockpile levels. WTI was trading around 67.58 – 68.33 up 0.49%. The uptrends were initially prompted by a fresh bout of intensified US-Iranian tiffs.

Cryptocurrencies:

As Credit Suisse and Square search for ways to enter the Crypto development arena hope is resounded to investors to consider some tokens over others. BTC, in particular, gained wings to temporally pass the 8,000 mark, trading up 3.76% in a healthy uptrend range of 7,597.8 – 8,043.3 with further up trends expected.

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