Investors in Asia Brace For US Tariffs

Investors are bracing for the first bout of US-Tariffs to the tune of 25% on $30 billion worth of Chinese trades. Asian shares are down due to this with ripple effects on the EU Markets limited as the Auto market boosts up European Shares by nearly 3.5% This may affect US stocks positively. Th

In a turn of fate GERMANY 30, (DAX30) surges 0.98% to 12,437, FTSE100, (UK100) jumps 0.31% to 7,598.70, FRANCE 40, (CAC40) was spotted at 5,355.79 up 0.66% How long will today’s fundamentals keep driving the EU shares remains to be seen.

Commodities are broadly mixed as Gold and silver try to hold on the gains, albeit slipping with the USD contest. Nonetheless Gold was up 0.06% at 1.254.60 and Silver losing its grip.

Copper, Aluminum, Nickel, and Oil were all bearish. US President Trump puts more pressure on OPEC to reduce Oil prices with more production. However, with the EIA, US Energy Information Administration on Tap to release its weekly Crude Oil Inventories Report, which predicts a drop of nearly 5 million barrels, prices are likely to bounce up. WTI Oil was swinging between 73.67 – 74.42 down 0.08% at the time of print.

As per our Analysis yesterday the Crypto-currencies did surge BTC/USD is up 1.44% at 6,613.4 ETH/USD at 473.12 up 1.28% and XRP/USD is up 0.17%

The USD Yields rose after independence day celebrations. The USD is broadly supported evident in the currency pair of the USD/JPY up 0.15% ranging between   110.30 – 110.69

EUR is defiant against the USD EUR/USD 1.1650 – 1.1711 as the GBP which is also up 0.20% ranging between 1.3171 – 1.3267

Market participants are watching today’s, economic data dump to gauge the strength of the USD on the docket are ISM Non-Manufacturing PMI, ADP Nonfarm Employment and Crude Oil Inventories to name but three. Crude Oil inventories reports suggest prices may rally. However, caution may be warranted as the US, increases production over 10.5million barrels a day

What is your view?

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Wall Street Out, Enjoying US Independence day!

  •  Wall Street is closed for Independence day celebration.  Market participants are anticipating a very volatile trading day as trading volumes have decreased
  •  The US Dollar recedes from yesterday’s highs giving way to most of the metal commodities such as Gold, Silver, etc.
  • Aluminum & Nickel remain the odd ones out pressured down by the trade tariffs.
  • Oil has been sensitive to reactions from OPEC+ and impending Oil shortages. On Tuesday WTI oil prices jumped to $75.27 as word on production shortages from Libya hit investors hear. Trades overreacted to the news taking into account that production is limited from Canada due to the power outage and Venezuela as sanctions take its toll.  However less than an hour later Oil prices slid, only to recover this morning. Even with Russia and Saudi Arabia trying to fill the vacuum prices remain challenged. API reported a draw of nearly 4 million barrels. To trade between 73.58 – 74.88
  • Gold is up 0.35% ranging from 1,253.30 – 1,262.40 by 08:20 GMT although by the time of print it had lost a bit of steam.
  • In the FX arena, it was a jolly morning for most of the other majors as the USD retreated.  However, the potential for some intraday profit taking was dampened.
  • Asian Shares were down trotting with ongoing trade woes weighing. The Yuan climbed though. However, to dismal mood reached European Markets suffocating the Germany30 (DAX30) to shrink 0.13% trading between 12,299.11 – 12,340.66.
  • UK100 had dropped 0.17% while France 40 edges up 0.5% to trade between 5,307.20 – 5,320.67
  • It is highly likely that wild swings in between gains and losses for witnessed with the currency pairs of GBP/USD, EUR/USD, USD/JPY, AUD/USD are all likely to persist. When the Service PMI reports for the EU, Germany, and Italy are released positive report will prompt short-lived upward knee jerking’s
  • Cryptocurrencies are down as India bans all Crypto activities reducing trading volumes. However, with the US market closed some investors may jump ship to the crypto for some profit taking.
  • US Tech stocks are down, however, investors believe it is a great buying opportunity especially for Facebook, Amazon, Google and even Tesla.

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Pre-US Independence day

Another market day begins with the US Independence Holiday looming, The USD retreated slightly Tuesday morning, even though it remains highly supported.
The EUR with a basket of other major currencies rallied from yesterdays lows.
EUR/USD increased by 0.20% to 1.1662 by 07:50 GMT trending in a tight range of 1.1664-1.1664. However, it does have the potential of surging to highs of 1.1673 or plummeting to lows of 1.1621 depending on how positive or negative the EU economic reports of today are. EUR’s rise was propelled partly by the restoration of calm in Germany’s coalition party, in which the Interior Minister Horst Seehofer, threatened to resign over migration policies.
GBP pipes up 0.35% GBP/USD was trading between 1.3095 – 1.3209 with possible uptrends should today’s UK Construction PMI report come out positive.
AUD also rose by 0.71%. The Reserve Bank of Australia kept interest rates on unchanged at 0.50 basis point.
Meanwhile, Russia diversifies to purchasing more Chinese Yuan and Gold for exchange reserves the move strengths some of the Russia shares from recent fallouts.
Commodities are broadly bullish Gold is up modestly trading in a tight range of 1,238.80 – 1,248.80 yet remains below last week’s highs.
Ahead of today’s API, American Petroleum Institute Report, Oil has been rallying. The Momentum was from supply shortages from which announced production drop of 800,000 Bpd, Barrels per day.
Cryptocurrencies shine for two straight days BTC was up 3.47% between 6,327.3 – 6,681.2.
Perhaps a small comeback as people like Arthur Hayes of BitMex continues to fan hopes of the Bitcoin reaching $50,000 by the end of the year. Though some analysts believe this is wishful thinking, all the regulatory policies and probe may effectively weed out most of the bad practices in the industry to bolster Blockchain and various tokens.
China’s face off with the US on trade tariffs pushed Chinese and Asian shares down, EU share escaped the carnage barely.
Germany 30 (DAX 30) is at 12,297.5 with uptrends of at least 20-80pips surge.
The UK’s 100 (FTSE100) is seen bullish ranging between 7,545.67 – 7,596.87 while France’s CAC40 also joined the club of uptrends swing between 5,284.13 – 5,334.69.
US Shares are likely to take a cue from the EU to rise at the open bell.

So in summary whats your take?? kindly share your thoughts in the comments.

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Commotions in the Market

  • The week seems to be driven by the impact of US lead trade tariffs which has snowballed to a ping pong of trade wars. None the less a capricious undertone is highlighted for the day.
  • Asian Markets fell, with China’s Yuan receded to two-year lows. The Crunch spilled to the European Markets which opened slightly positive were short-lived to be pinned down by the threat of possible resignation of Germany’s interior Minister on migrations concerns
  • Germany 30 (DAX30) was trading between 12,132.93 – 12,277.62 by 08:40 GMT down 0.25% at 12,273.22.
  • UK’s 100 (FTSE100), receded 0.83% ranging hopelessly between 7,539.25 – 7,584.86 even positive reports today did not move the GBP into a bullish light.
  • France 40 (CAC40) plunged 0.91% to 5,275.57

The Commodities have also been hit hard with almost metals, energy down.

  • Gold dropped 0.39% to 1,249.60.
  • WTI Oil recedes 0.35% to trade at $73.89bbl, ranging from 72.62 – 74.00. Trump’s tweet on Saturday claim Saudi had agreed to increase productions to bring prices down was quickly refuted. Volatility is expected as eyes pray on OPEC for clear direction.
  • The USD managed to consolidate its gains from Friday. USD was seen hawkish to the EUR, GBP, AUD, and even safe haven JPY conceded to the US.
  • Market participants are looking at Friday’s NFP report to determine if the rates may be hiked once or twice before the end of the year.
  • Cryptocurrencies retreat from Friday’s highs amid news that Facebook has removed its blanket ban.
  • Reversal and corrections are expected as the day’s economic reports are delivered.

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GBP, CAD Gross Domestic Product & Trade Respite

  • The GBP and CAD are poised up tacking on gaining ahead of their respective GDP Gross Domestic Product reports. GBP/USD was up 0.34% by 08:00GMT ranging between 1.3069 -1.3184 while CAD/USD gained 0.28% to trend between 0.7534 – 0.7574. Further upside is expected with some Analyst predicting a favorable outcome for the GBP & CAD.
  • Meanwhile, Asian shares picked up Friday morning as Trade Frictions worn down ahead of the weekend. With Asian Share up, European Markets are optimistic to catch the unwinds into the Germany 30, Italy 40, UK’s 100, and France 40. All Futures were seen bullish Germany 30 was elevated 1.52%, as Deutsche Bank shares rally after successfully passing US induced Stress Tests. UK100 up 0.76% and France 40 up 1.32% at the time of print 08:00GMT.
  • Most of the Metal commodities surged from previous lows. Gold gained 0.14% Silver 0.43% to name but two. Oil although supported by supply concerns as noted in our earlier reports began correction downwards. WTI Crude was down 0.23% to 73.30 and set to be ranging between 72.94 – 73.42 of the $74bbl handle seen on Wednesday. However upward spikes are not ruled out until Suadi Arabi announce its intentions as to how much it would add to production to curb prices from skyrocketing.
  • The Crypto remain a red falling from Thursday’s upbeat mode. The Bank of International Settlements, (BIS) has categorically sidelined Bitcoin as incapable of working as money citing a list of cons. The Weiss Cryptocurrency Ratings pointed out that not all criticism against Bitcoin and Altcoin are justified New to support the Cryptocurrencies, such as Facebook’s announcement to go easy on crypto ads and Tether’s issuance of some 250 million tokens did not pacify buyers to folk to the field.BTC is likely to end the week where it started below the $6k mark.
  •  Although the USD retains is firmness some majors are defiantly challenging the USD amid Friday’s profit taking and various localized economic reports that are being delivered.
  • EUR/USD was up 0.70% trading at 1.1649 while USD/JPY stayed up 0.21% at 110.71, USD/MXN reported an increase 0.12% to 19.7451. Commodity currencies like the CAD and RUB attempted to rally against the USD. USD/CAD was down 0.17% at 1.3226 and USD/RUB was down 0.19% ranging from 62.6237 – 62.8516.
    Eyes remain fixed on today’s Baker Hughes report and inflation report from the USA.

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Trade Disarray Spiced with US-GDP Reports

The USD strengthened against a basket of other major currencies, ahead of today’s US Gross Domestic Product (GDP) reports scheduled for 13:30 GMT. USD/JPY was at 110.32 with a rise of 0.06% traversing between 109.97 – 110.42 by 08:00GMT. It is evident that volatility is heightened as the day is laced with other Economic releases from the European sector which may be grim to push the EU down, while DXY, the Dollar Index jumps rallies some 0.64% from its previous close. Meanwhile, GBP hits 7-month lows.

 Asian shares lost momentum sinking to 9-months lows as the Trade Wars bite. The Uncertainties are likely to weigh on EU shares negatively and perhaps smudge the US Stocks along the way. The Germany 30 (DAX 30), was amongst the first to cringe, ranging volatilely between 12,272.84 – 12,374.19, UK100 (FTSE100) between 7,579.75 – 7,629.86 and France 40 (CAC40) trending from 5,305.00 – 5,341.09. The USD Nasdaq, DJI, USA30 may see upticks from the 13 companies releasing their Earnings reports today. such as McCormick & Company Inc, Walgreens Boots Alliance Inc, and OMNOVA Solutions Inc to name but three.

 Global share remains shaky driven by today’s economic reports and the upcoming EU Leader Summit in Brussels with the agenda focused on migration, security, and defense, as well as Economic and financial affairs. as well as exploring the Brexit saga perhaps to mount pressure on UK’s  PM Theresa May.

 Commodities were downbeat. Even WTI Oil which surged past the $73bbl mark took a nose dive Thursday European morning. Ranging between 72.28 – 72.89 in a comfort zone. Retreating from an almost 4-years overbought level. Which was brought on by supply disruptions, in Libya, Canada, Venezuela amid the US urging Countries to boycott Iranian Oil? India seems to be amongst the few not to heed to US outcry. Wednesday’s Crude Oil inventories report a draw of over 9million, 7 million above forecasts.

 Aluminum is also plagued by the Trade Wars in a bearish mode while Nickel tacks on gains.

Gold, on the other hand, is heading for a weekly losing streak trading at 1,251.30 with a drop of 0.38% ranging between 1,249.80 – 1,255.50. Naturally pulls Silver Down with it.

 Cryptocurrencies are attempting to gear up into recovery mood BTC/ USD was seen swinging between gains and losses in a range of 5,984.9-6,192.2 with the others like ETH and LOT demonstrating the same attributes of volatility.

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