2nd Quarterly Earnings Reports Adds A Tinge Of Optimism.

Asian Markets are positively bullish Friday morning bolstered by upbeat  US consumer sentiment and rebounds from the effects of the Trade Tariffs Threat, (TTT).

The USD reaffirmed its position versus other currencies rallying up to 10-Day highs, brought on by the surging of US yields and expectations of an upbeat Quarterly earnings report from some of the most notable Banks such as Citigroup Inc,(C), JPMorgan Chase & Co, (JPM), Wells Fargo & Co,(WFC),& First Republic Bank,(FRC) to name but a few.

Banks Earnings2018

  • Global Stocks:

Global stocks are bullish, Asia is up, ripple effects will be seen in Europe, and likely to bounce on to the US

Germany 30 was up 0.22% in a range of 12,517.60 – 12,584.59

France 40 was also up 0.34% trending between 5,421.5 – 5,440.0

Italy 40 rallied 0.27%, while UK100 climbed 0.47% oscillating between  7,683.75 – 7,717.00 at time of print 08:31GMT.

With the USD up other majors are down in classic inverse correlation

EUR/USD down 0.33% 1.1627 – 1.1675

GBP/USD  pinned down 0.61%

AUD/USD is also bearish to the USD slipping 0.43% in a range of  0.7368 – 0.7422.

The USD/JPY is raising eyebrows with US piping up from 112.42 – 112.80

Commodities reversed Thursday’s gains in most assets Oil is down and so is Gold. Baker Hughes Rig count on tap

Cryptocurrencies;

Cryptocurrencies are very bullish

Crypto130718

Meanwhile, US President Trump continues with his European tour first the NATO, North Atlantic Treaty Organisation Summit followed by with his Official state visit to the UK.

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Is the Market Resurrecting?

The Market shakes off Wednesday’s gloom and gears up into recovery mode ahead of several economic events scheduled for the day namely the WASDE, World Agriculture Supply & Demand Estimates announcement, which will impact consumable commodities, The Euro-group Meeting, Industrial Production for the EU, US Consumer Confidence, US Initial Jobless claims report and the Russian Central Bank reserves on USD report to name a few.

  • Global Stocks:

Global Stocks are up Thursdays morning recovering from Wednesday setbacks brought on by trade war rhetoric. Asian shares were all bullish even China’s Hang Seng was up 0.17% by 08:40 GMT while Japan’s 225 noted a rise of 1.17%.

In Europe, UK 100 was up 0.52% in a range of 7,596.75 – 7,631.95 while Germany 30 climbed 0.20% swinging between 12,419.82 – 12,471.25 the France 40 leaped to 0.25% range bound from 5,349.48 – 5,369.87. Italy 40 was the only odd one out, down 0.21% traversing a bearish path from 21,485.00 – 21,685.00 upside movement is tamed.US Stocks may be supported by earning reports though Facebooks cringes on a further allegation which could lead to an EU fine.

  • Currencies:

USD surged to 1-month highs Wednesday, on comments made by FOMC members and supportive economic data before taking the back seat today ahead of the day’s events. Giving room for other majors to glow.

  • EUR/USD was up 0.05% trading in 1.1670 – 1.1693 a drop from the 1.17 handle.
  • GBP/USD hawkish amid Brexit woes up 0.08% between 1.3190 – 1.3226
  • AUD/USD, 0.20% up oscillating between: 0.7360 – 0.7484
  • USD/JPY. The yen lost its luster the USD rose considerable based on positive inflation data according to some analyst, other suggest is it an intentional move which the BOJ wishes to portray for now.
  • Commodities:

Commodity prices have been sailing the bullish boat Thursday morning. Partly in correction mode and by the events of the day.

  • The gold spot was swinging in and out of gains from 1,241.40 – 1,246.40
  • Silver tacked on almost 0.51% trading between 15.780 – 15.930
  • Copper reversed yesterday’s losses with a rise of 1.08% in between 2.732 – 2.792
  • Oil Prices shocked market participants, most of whom were expecting prices to have surged yesterday. However, due to reports from the EIA Energy Information Administration, EIA reporting that Crude Oil inventories had plummeted beyond expectation to also most 12 million barrels instead of roughly 6 million barrels. This reveals that there is too much oil production in circulation WTI prices fell from the $ 74 handle to $70. Thursday morning correction are in view up 1.01% ranging between  47 – 71.14

Cryptocurrencies;

Cryptocurrencies remain vulnerable with most of the 100 tokens still in red BTC/USD was down 2.56% in a range of 6,145.0 – 6,407.9 while all other remain dazed out.

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President Trumps zaps the market.

Market Participants are buckling up for one of the choppiest days in the Market.

Tuesday evening US President Trump reminded the Market of his intention to impose another $200 billion tariffs on China. The announcement pulled Asian Markets down wiping away the short-lived optimism of the day.  As the market attempts to decipher the impact, the shockwaves could be seen across all boards. Except for the USA amid open discussion at NATO.

  • Global Stocks:
  • Asian Markets plummeted, dragging with it the Australian market. European shares have also been unsettling,
  • UK100 oscillates from 7,593.75 – 7,636.35
  • France 40 traverses a negative path from 5,372.30 – 5,396.70
  • Germany 30 is range bound between 12,439.43 – 12,515.16.
  • All are in a bearish state looking for a lifeline. Except for the US shares which ebb up supported by earnings season.
  • Currencies:

The USD advanced against some Major currencies, AUD/USD was down 0.67% hit by Trade war rhetoric. EUR/USD down 0.11%. by 08:40GMT

ECB President Mario Draghi and ECB Members Praet and Mersch are to comment on the status quo with perhaps hits for forwarding guidance EUR may be trading sideways.

GBP/USD swings in an out of losses hoping BOE Mark Carny’s speech late in the day soothes investors to go long on the GBP. Meanwhile, GBP/USD treads from 1.3224 – 1.3301.

Investors are ready to jump ship to safe heavens like JPY in case the Market overheats. USD /JPY is currently on the upside trading between 110.77 – 111.15.

The CAD is also down waiting for reports on today ‘s Interest Rate Statement

  • Commodities:

All commodities dropped in what some analysts call a bloodbath.

Gold was down 0.32%, Silver slipped 0.60%, Copper drops -3.01% while WTI Oil follows suit with a 0.80% dip by 08:40GMT although the US soften its stance against Iran.

With today’s Crude Oil Inventories Report on tap and OPEC’s Monthly Summit kick starting, prices of Oil are expected to correct upwards meanwhile trading between 73.22 – 74.27

Cryptocurrencies;

All the blue-chip tokens are bearish even though countries like India grants permission for two new exchanges.

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British Pound,pounds in wobbly market

The Asian Markets are enjoying a streak of bullish days. The uptrends could be attributed to Asian markets finding ways to contain the US Tariffs. And a boost from the insurance of US Earnings season.

With Asia up, Market participants expect a domino effect to European Shares and a spill over to the US. Amid ongoing trade war tactics and political uncertainties in the UK as 3 Ministers from PM Theresa May ‘s cabinet resign.

Global Stocks:

  • Germany 30 is trading between 12,531.34 – 12,581.42
  • UK 100 ranging from 7,679.53 – 7,701.50 Investors are hoping today’s economic reports, such as Industrial Production, UK’S GDP, and Manufacturing Production, will elevate the GBP at least momentarily.
  • Italy 40 trending in a close range from 21,906.65 – 22,102.50
  • France 40 swings between 5,404.90 – 5,412.37 up .018%

The USA 30 is likely going to be amongst the gainers of the day ranging from 24,768.0 – 24,878.0, up 13% ahead of Quarterly Earnings Report from companies such as (PEP), PepsiCo Inc, (MSM), MSC Industrial Direct Co Inc, (SLP), Simulations Plus Inc and (SMPL), Simply Good Foods Co to name a few.

Currencies:

The USD is holding onto gains as is evident from the DXY up trends at 94.12 by the time of print 08:24GMT

  • EUR/USD spotted at 1.1745 down 0.06% in a range of 1.1732 – 1.1763
  • GBP/USD is hoping to take advantage of any positive news that comes out of the economic data dump today.
  • USD/JPY is up 0.27% bullish in a range of 110.79 – 111.20.
  • While AUD/USD drops 0.33% to 0.7442.

Cryptocurrencies are on a reversal trend as the IRS Internal Revenue Service hints on its intentions to tax crypto transaction.

Commodities:

Gold spot to a back seat from yesterday’s hawkish mode. Slipping nearly 0.25%. Meanwhile, the XAU/USD was down 12% ranging in between 1,255.22 – 1,260.40

WTI Oil Crude is up 0.54% trading 73.88 – 74.42 as Traders wait for today API, American Petroleum Institute’s report for more insights.

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Jobs Reports Boost Market Sentiment

Friday’s US NFP, Non-Farm Payroll one of the most popular economic indicators, in gauging the strength of the economy was released with mixed undertones. The report revealed 213,000 jobs were created for the month of June versus estimations of 200,000 which was good sending the USD up. However, the rally was short-lived as the unemployment also rose from 3.8% to 4.0%

  • The DXY, US Dollar Index was down 0.18% by 07:17GMT ranging from 93.51 – 93.72

With the USD losing some steam. Investors have been picking and choosing other up trending assets.

  • In the FX space EUR, GBP, AUD, and JPY are in a Hawkish mood.
  • EUR/USD was up 0.21% trading between 1.1743 – 1.1779.
  • GBP/USD climbed 0.40% ranging from 1.3285 – 1.3350 Although the GBP dropped following the resignation of British Brexit Secretary David Davis, The Pound is in up with investors hoping to take profits before any “Hard Brexit” is ensured.

Commodities have been relatively upbeat in classic inverse correlation syndrome to the USD.

  • Gold edged up 0.46 to 1,261.60 with expected highs of 1,263.10 and lows of 1,255.80 for the day.
  • WTI Crude Oil rose despite an increase in Baker Hughes Rig Count from 858 to 863 and in addition to ramped up production from Saudi Arabia, Russia, and the US global supply is questioned with dwindling inventories as some reports claim. Oil prices took on a bullish path ranging from 73.73 – 74.23 and remain very shaky volatility to the downside is expected before any surges about the $74.23 psychological mark for today.

Naturally Silver, copper, Aluminum, and Nickel are all up.

The positive US jobs report (NFP) rendered support for the Asian Markets. With Asian Shares up the European Stocks are also ticking up, which may bolster the USD Shares when markets open. Market participants among other things are keeping an eye on developments of the US lead trade wars, and the upcoming Earnings reports from various companies

  • Germany 30 (DAX30) was up 0.16% trading around 12,514.51
  • UK100 (FTSE 100) was 0.14% up marching around 7,627.25,
  • France 40 (CAC40) climbed 0.55% to 5,405.35.

Cryptocurrencies’ are in a limbo retracting from previous gains.

  • BTC/USD surged passed the 6,500 mark however lost 0.17% by0.8:44GMT to trade between 6,666.1 – 6,774.8 ETH/USD lost 0.71% and playing touché.

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China is not ready to turn the other cheek

The US slapped China with $34 billion trade levy, Sending Asian shares down, while boosting the USD, momentarily. Ahead of today NFP report, investors remain apprehensive in search of direction and safe havens. The Chinese Market is now 17% down in the bear market.

  • Although the Chinese kept their cool in hopes that US President Trump may re-access his position. The reality has dawned upon China, which is considering retaliation moves officially dragging global market into a full-blown trade war.
  • As Traders and Investors digest the consequences many are already considering the Safe havens like Gold and the JPY. Amid Friday’s usual profit taking a basket of major currencies, EUR, GBP, AUD, JPY CHF, are all in demand rallying against the USD.
  • EUR/USD is up 0.21% oscillation in a range of 1.1650 – 1.1726
  • GBP/USD is also bullish, rallying 0.20% between 1.3204 – 1.3253. While USD recedes verse the JPY down 0.04% in a tight range of 110.30 – 110.78.

Thursdays’ ADP, Automatic Data Processing Report disappointed investors coming out a to 177k instead of the projected 190k. since the ADP and NFP have been correlated, Analysts are signaling a possible downside to the NFP report due 13:30GMT.

Oil saw a dramatic plunge to the $72bbl handle after the Weekly Crude Oil Inventories report from the EIA, Energy information Administration failed to appease investors. The forecast was for a drop of 5.200M barrels which would have lifted prices, instead there was a surged of 1.245M barrels pushing prices down. With Baker Hughes Rig count on tap crude oil is jumping in and out of profits ranging between 72.64 – 73.31 and 0.05% up by 08:34GMT.

Gold has been shaky declining as the USD strengthens. However, as a safe haven, it is likely going to be gaining moderate attention as trade wars get sticky.

  • The gold spot was oscillating violently between 1,253.70 – 1,259.80. XAU/USD was trending between 1,252.90 – 1,258.82.

Meanwhile, European Shares are bullishly led by the auto industry which according to some sources got some relief from Trumps Tariffs for a reciprocal treatment for US automobiles in Europe’s. Most of the Asian shares are picking up.

  • GERMANY 30 (DAX30) was up 0.12% ranging between 12,442.90 – 12,509.05.
  • FRANCE’s CAC40 up 0.32% in a range of 5,376.20 – 5,393.46
  • Italy40 was also up 0.34% trending between 2,132.2 – 2,144.4.
  • While UK100 bounces cautiously between 7,606.25 – 7,632.57 up 0.08%.

Cryptocurrencies are red. Bearish. Perhaps due to the fact that investors are edgy and not wanting to jump too quickly opted for some short profit taking.

The day is definitely going to be an interesting one with several trading opportunities available in the FX, Commodities’ and Stock. This may be the right time to call attention to the US Tech stocks and the FAAG stocks as well. Google, Facebook, Amazon, Apple, Netflix to name but a few are all turning bullish after the drop post the 4th of July.

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