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Tuesday Market Tango With Oil As Co-Driver.

Tuesday Market tango with Oil as Co-driver.

The markets are blissful today ahead of the day’s weekly API Oil stockpile report. While the USD losses a bit of its edge. Naturally, the FOMC’s schooled meeting will be monitored closely to the culmination of the FED Interest Rate Decision on Wednesday. The current Rate is at 2.50% and likely to remain unchanged.

The EUR, GBP, a basket of other majors, commodities like OIL and GOLD were all bullish.

Stock:

Global Stocks were teaming up high with only 44 companies reporting. It is interesting to observe Wall Street. Ticking up. Most of the Asian market closed mixed although supported. While EU Shares shine and The US is expected to be hawkish.

UK100: Refused to wallow in negative territory as Oil prices edged up Oil investors and Oil heavy listings. Such us BP on the UK100 aka FTSE 100 reported gains which bolstered the asset. In other Words BP PLC. Is also up treading. Hint J
Germany 30:Climbs up 0.85% to trade around 11,772.0 between 11,660.5 – 11,785.2
Italy 40: After the dips on Monday, the asset was caught up 0.69% by 11:30 GMT. Ranging from 20,677.00 to highs of 20,847.50.
US30: As could be witnessed the Dow is almost nearing it resistance levels for today 26,078.0 from lows of 25,949.5m

Meanwhile, the DXY supports the view that USD is slipping. Obviously with the USD down commodity prices become affordable.

Commodities:

In tandem with Monday’s post, the commodities are bullish.

Gold: Remains bullish, today up trading between 1,302.25 – 1,308.75 up 0.47%
Oil: US Crude oil prices the WTI which is usually used as benchmark for the sweet oil. extended gains to 59.86 the current resistance level before slipping a tad however bullish ahead of the API report later today price may cross the $60 bbl. Although seen prevalent trading between 59.24 – 59.86 for most of the day by the time of print up 0.54%

FX Market:

Trends are supportive non-USD currencies.

EUR/USD: trades from 1.1334 support levels and hopes to climb to 1.1365. after which further support will be sort after. Caught up 0.16% at the time of print.
GBP/USD: The Pair remains highly capricious with tango shoes on sliding in all directions. Today with the USD down and report of the lowest unemployment rate for almost 40 years the GBP was up 0.19% the resistance level was noted at 1.3312 and support at 1.3241. further downside may be possible. Brexit saga weighs especially follow House Speaker Bercow caveat that the same notion could not be rehashed unless the content or approach is different from other deliberations.
USD/JPY: Another source which shows the USD is weaker is this pair in which the USD gave up gains to the JPY down 0.04% at 111.39 Trading between 111.16 – 111.47.

Trending News:

Boeing: Until investigators and Boeing know the exact cause of the malfunctions in their 737 Max planes share prices continue to be hammered seen down 1.77% and likely to open lower perhaps to

Facebook: is another asset to keep an eye on, however, it is expected to open with a gap up of at least 0.39 % – 0.42% trending with gains capped perhaps around 164.00

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Have an awesome week!!

Plotting Brexit And Wednesday Oil Inventories Report Drives Market.

Brexit Tailgating Fizzy’s GBP

Brexit Parliamentary Vote & A Clash of Central Bankers.

The 2nd Brexit Parliamentary Vote & Market Reactions.

The USD, Still Got Its Foot on the Throttle.

The USD still got its foot on the throttle, with the DXY dollar index which measures the strength of the USD vs a bunch of other currencies registering bullish intent. At 96.74 up 0.10% at the time of print. Trading between 96.62 – 96.78.

The New week begins with market participants’ eager for direction as the count down to the end of the US-Chinese trade truce at the 1st of March nears with no concrete resolution. Britain’s are also in somewhat uneasy times as PM May, scrambles to obtain better and favourable terms for Brexit. Headlines indicating and highlighting the plight of the Brexit which is causing weakness in the UK not seen since 2012 were seen splatted on the front pages of mainstream financial news outlets.

Global market slow down, exacerbated by the Sino-US trade tiffs, quantitative tightening, and general uncertainties which US domestic and foreign policies are brooding directly and indirectly, is causing side effects which in most cases forces prudent traders to stay close to the safer-havens. In case of any overheating effects from the riskier asset.

US Shale productions activities is also seen impacting Oil prices in a bearish way.

Global Markets:

Global Stocks are very jumpy. Today it is most likely, most of the stocks across the boards are going to attempt to rally. Asian share where mixed with the China 50 up 1.36% by the time of print. European shares are to be seen off 6day lows. Wall Street hopes to ride on these winds on changes with some 69 companies in the entertainment, retail, mining and banking sectors due to release their Q4 earnings reports.

US30: Was seen trading 0.36% up at 25,171.5 by the time of print 09:35 GMT. Trading from 25,017.0 – 25,213.5. Further upside is very possible.
UK100: Is tacking on gains up 0.88% at the time of print at 7,076.5. from lows of 7,023.6 aim for current resistance levels of 7,086.5and higher.
Italy 40: Trades bullishly up 1.68% climbing from 19,407.50 at 19,662.50 determined to reach 19,682.50 or even more.
Germany 30: Was seen hawkish up 0.56% at 11,006.5 aspiring to reach 11,028.5 and even further up.

Commodities:

Friday’s post on commodities, does still hold water. As the USD gains commodity prices fall. However, the strain on our usual suspects seems to come from the same source. The realization from the Baker Hughes Rig count which showed an increase in the total number of rigs to have risen to 1049 while the number of rigs for the week rose by 7 from 847 to 854. This obviously undercuts efforts by OPEC + for price stability somewhere between the $60.00bbl and $70.00bbl. Even sanction on Venezuela and Iran seems insufficient.

Oil: WTI crude oil price where seen slumping down 0.85% at 52.27. However, as closer observation shows conformity to a familiar trading range bearish trading from 52.77 heading to it support of 51.91 is not helped by some news.
Gold: As mentioned earlier gold retains its title as a default safe haven and in times like these could narrow or widen its trading range either to the upside or down side. Today Monday beginning of another earnings week, Gold is seen bearish albeit trades in a wider range above the 1300 mark between 1,318.65 and 1,309.65 seen down 0.62% at 1,310.35.

FX Market:

Market participants will as be looking forward to take advantage on the volatility surrounding the GBP. As traders and investors await reports on the UK’s Gross Domestic Product, reading on Industrial Production and a deluge of economic data releases. Analysts are under the impression that the results maybe disappointing in light of all the strain the UK is going through now.

GBP/USD: Seen volatile taking on small gains ahead of the GDP report. Only likely to reverse any small gains made later, trading between 1.2895 – 1.2943 in an out of losses.
EUR/USD: With the USD back in the driver’s seat, the EUR face a daunting challenge. Skidding 0.19% at 1.1307 current support levels stand at 1.1296 levels which could be breached today. With a capping resistance at 1.1331.
USD/JPY: The pair crossed the 110. threshold as announced in Friday’s post. Trading between 109.78 – 110.28. Up 0.39% at the time of print.

Trading on markets momentum in short intervals maybe rewarding while using later expirations for hedging.

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The Slow Slide Friday with Greenback- USD as Boss.

Unsustained Proliferation With Market Trends, Twitter Signals.

A volatile “Vendredi” Friday, Partially Blindfolding Markets.

A volatile “Vendredi” Friday, partially blindfolding markets. Following up on Thursday’s post as markets brace for today’s profit-taking global stocks seem on track to end to week on a positive footing. Driven by several factors, partly due to development in the US-China Trade Impasse, which has brought to light adverse results which is contributing to the slowing of global growth and stretching of emerging markets elasticity.

Global Markets:

The uncertainties no doubt has increased the market gyration with volatility highly spiced in a capricious market sentiment. Well taught out, trading strategies and predictions are completely blown out of the water, as fundamental are changing rapidly with a shortened or elongated time frame. EU shares though after showing undeceive downward trends Thursday EU open to which some analyst thought would have kept stock prices contained. Were unable to keep the lid on for too long.

Germany 30: Was seen at 10,935.20 aiming for 11,000 however, the first resistance is set at 10,958.00, Many Analysts think there could be a reversal of trends before it continues to climb again to if possible to the 11,000 levels. Downside to current support levels of 10,910 are more realistic. From the time of print 08:10GMT to perhaps 14:00GMT.

Italy 40: Was captured at 19,277.50 slightly down from highs of 19,297.50. perhaps we could see some sell-off to 19,100.00 in the EU Trading hours.

UK100: Is very bullish perhaps driven by expectation of the delivery of UK’ GDP. It was spotted at 6,899.8 sliding from 6,909.2. in as much as the asset is set to breach the 7k levels market participants are warrying this would only be a teaser.

US30: Made a run for it Thursday almost taking us to the 24k level. Unfortunately, this was not released closing at 29.953. Today the expectation is for it to get as close as possible to 24k, perhaps 23,994.00 which is the current resistance level. After which knee-jerking down to 23,920 is highly possible as recession cries are heard in what is become a protracted US government shut down. Impacting the lives of many.

Commodities:

Oil: Prices are jittery driven also by developments between China & US as well as OPEC and Saudi’s efforts to curb slumping price by limiting production and supply. Saudi Oil Minister was quoted elsewhere to have mention seeing Oil price back to $80 bbl. we are not sure if that is Crude oil or Bent. However, these efforts come in as the Saudi’s reconsider the IPO od Aramco, which is said to be in 2021. Meanwhile WTI Crude Oil was spotted at 52.80 by 08:10GMT from 50.14 heading to 52.83. there after 53.00 and maybe 53.28. Ahead of the day Baker Hughes Rig Count.

Gold: This is what we said about gold on Thursday, “With the doubts in the market Gold keeps its lustre seen at 1,297.05 by the time of print it is expected to drop perhaps to 1,290 when the trading on the USD resumes. However, upside movement to 1,298.00 is likely by the end of the day”. Today Gold is set to trade between 1,286.80 – 1,295.70 by the time of print it stood at 1,294.55 up 0.58% knee-jerking has not been ruled out.

FX Market:

EUR/USD: Behaved as expected yesterday. At the time of print the pair stood at 1.1530 uptrends to 1.1545 are likely with support levels set at 1.1496.

GBP/USD: GBP is gaining momentum on possible rumours of a postponed Brexit date ahead of the 14 January parliamentary vote. By the time of print they stood at 1.2763 upside to 1.2840 before backing down by mid-day GMT is warranted. In case the deluge of economic data releases due during the day such as Industrial Production, GDP etc. come out exceeding market consensus to the up side, the pair could head to the 1.29 level. If not down trend to 1.2710 will not be surprising. Simply put Brexit weighs.

USD/JPY: As the apparent weakness in the USD persists the JPY flexes. Set to trade in a tight range between 108.24 – 108.48. by the time of print 08:10 GMT they were caught at 108.30.

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Markets Brace For Some Profit-taking

Markets brace for some profit-taking following the Sino-US trade negotiations which injected a dose of optimism at the beginning of the week, However, as “hope” keeps getting slapped in the face. We are likely to see some retractions.
Although market participants are to assume that the meetings went well from US President Trump’s tweets, details are still inconspicuous. Causing Traders to avert risk i.e. especially with Fed Chair Jerome Powell on tap to speak perhaps downplaying the prospect of future rate hikes. Prompting investors to consider other viable options most flocking back to the safe haven, GOLD, JPY, and CHF, even the AUD gains vs the USD as AUD is a commodity currency moving in tandem with GOLD just as the CAD is affected by OIL.
Global Markets:
Although Asian Shares rose on Thursday Asian open on the backdrop of the USD and perhaps more stimulus from China. EU shares where not so hopeful as investors. Decipher the current condition brought on by the lack of a consistent and immediate resolution to resolve the trade impasse.

Germany 30: Was caught down 0.66% at 10,787.00 from lows of 10,783 and highs of 10,880.50 swing in and out of gains to the downside is likely the game plan today.
Italy 40: ranging between 19,145.00 to18,945.00 down 0.41% at 19,012.50 by the time of print 08:48GMT.
UK100: Was oscillating between highs of 6,891.0 and lows of 6,798.5 down 0.58% at 6,817.0
US30: Seems to be shedding it recent gains sliding from 23,844.5 to 23,689.0 and further downside may be visible by the end of the day by the time of print it stood at 23,709.5 down 0.49%

Commodities:

Oil: Rose to 52.21 as Saudi gave details to how much it was willing to cut export which was nearly by 800,000 barrels coupled with some-what manageable crude oil inventories which, reported a drop of 1.680 million barrels vs. the forecast of a drop of 2.400million barrels.
Gold: With the doubts in the market Gold keeps its luster seen at 1,297.05 by the time of print it is expected to drop perhaps to 1,290 when the trading on the USD resumes. However, upside movement to 1,298.00 is likely by the end of the day.

FX Market:

EUR/USD: The pair became hawkish late Wednesday rising to 1.1570 on a weaker dollar and fed minutes. There is an expectation for the EUR to climb perhaps hitting the 1.1600. however, as the USD tries to regain ground a drop to 1.1515 could be realized before up ticking.
GBP/USD: The pair crossed the targets set for yesterday to 1.2802 and like clockwork begins to shed gains, seen trending around 1.2764 down 0.19% with a support set at 1.2748.
USD/JPY: The USD weakened allowing the JPY to gain. The pair were spotted near support lines of 107.7. However, with the DXY climbing from 95.03 up 0.09%. The USD/JPY may climb back into the 108 thresholds perhaps 108.30 could be the resistance and level.

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Related Links:
https://blog.xtrade.com/homepage/all-eyes-on-us-fed-munitescad-interest-rate-oil-inventoriesreport/
https://www.investing.com/news/economy-news/top-5-things-to-know-in-the-market-on-thursday-1743227

All Eyes On US Fed Munites,CAD Interest Rate, & Oil inventories,report

All eyes on US Fed minutes, Canadian interest rate decision and Oil inventories report. Market participants are hunting. Meanwhile, the US-China talk enters into its 3rd day, with the progress thus far encouraging. Despite the US government’s partial shutdown in demand for assistance in constructing the border Wall with Mexico Which enters its 3rd week., President Trump has offered the use of steel instead of concrete. Perhaps a sleek attempt to put steel stocks up on the charts.
The positive feedback from the Sino-US trade & tariff negotiations boosted the Asian markets rendering some optimism in global markets since the onset of the Trade War tiffs which has left markets attempting to recover from a significant clamp down.
Global Markets:

Germany 30: Is bullish up 0.46% at 10,874.5 by the time of print 08:30 GMT, set to climb to highs at 10,950 from lows of 10,812.00
Italy 40: Was spotted at 19,067.50 coming from 18,940.00 and trying to head back to beyond its current resistance levels of 19,107.50.
UK100: Hawkish surging 0.68% by the time of print to 6,908.53 from 6,892.50 -6,921.50
US30: Registered a triple-digit boost on Tuesday and the markets were encouraged by developments in the US-China talks, which enters into its 3rd day of deliberation. Ranging from 23,716.0 – 23,888.0. up 0.44% at the time of print. almost all the FAANG and Tech stocks are likely to rally, up.

Commodities:

Oil: The API revealed a drop of nearly 6.5 million barrels this and the progress between the two largest economies, allowed the price to rally, hitting the %49 bbl. and climbing to $50.20 the anticipation is for a rise to 51.10 or beyond before the crude oil inventories report is released at 15:30 GMT.
Gold: Meanwhile Gold swings in out of losses. Pressured down to targets of ranging between lows of 1,282.05-1,288.10

Other commodities like copper, Aluminium, and Steel edge up while Silver walks in tandem with Gold.
FX Market:

EUR/USD: Bullish at 1.1475 some weakness will be spotted as the day’s economic data is released however, a surge to 1.1482 is likely possible again.
GBP/USD: The pair was seen 0.48% up at 1.2771 and set rally to 1.27780 before losing steam as Brexit bites.
USD/JPY: They managed to cross the 109 targets before receding into the 108 territories, found ranging between 108.68 -109.00 upside movement back to 109+ is very likely on volatility in the afternoon of the EU open.

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Related Links:
https://www.investing.com/news/economy-news/top-5-things-to-know-in-the-market-on-wednesday-1742011
https://www.cnbc.com/2019/01/09/uae-oil-minister-on-president-donald-trump-and-opec.html

Without Any Concrete Concessions, Market participants Jump

Without any concrete concessions, Market participants had excitedly jumped on the bandwagon that trends were going to surge with the US & China back at the table and perhaps the prospects of future US rate hikes were put on a slow burner. Unfortunately, the trends could not carry the sentimental burden much further without a challenge.
Although Global markets rallied most of them disappointed by not reaching their intraday target. Fumbling along the way as investors considered the outcome of the status quo.
Today’s calendar is fully loaded with sentimental indicators such as the EU Consumer Confidence, Service Sentiment, Industrial sentiment to name a few. Meanwhile, the US will be releasing stats on its Job Openings (JOLTS), API weekly Crude Oil stockpiles, Imports & Exports to gauge the strength of the USD.
Global Markets:
Monday’s prognosis that Wall Street was set for a positive open. Unless the US-China negotiations were to hit a snag manifested.

US30: Acted as forecasted remaining in familiar territory ranging from 23,498.0 – 23,662.0. by the time of print 08:15GMT it was spotted at 23,498.0 uptrends to 23,800 could be very feasible. As US Tech stocks attempt to recoup gains.
Germany 30: Was seen at 10,780.50 from 10,732.5 heading to 10,805.0 and perhaps beyond 10,820 .0
Italy 40: has been oscillating between 18,862.50 -19,545.00 caught at 19,007.50 changing gears for a possible steep climb up.
UK100: Has also been roller-coasting in a similar range to yesterday 6,740.0 – 6,805.0 up 0.51% at 6,778.8 and aiming to remain above the 6,8k for the day. Analysts think a more realistic number would be around (6,790.00 to 6,795.00)

Commodities:

Oil: Ahead of today’s American Petroleum Institute’s weekly crude oil stockpile, WTI Oil attempts to rally back to the $49bbl. mark before the report is released at 21:30 GMT. Awesome time for those in Australia. Ranging between 48.32 – 48.95
Gold: Investors verge out on risk-on mood. Neglecting the safe havens for a while. GOLD was spotted at 1,283.45 down -0.50% from 1,291.25 and it support levels at 1,282.75
Copper: Shares are bound to rally with the US- & China talking at least a surge of a 1%which is likely from 2.625-2.652

FX Market:
The DXY indicates the USD is consolidating seen up 0.15% from 95.68 -95.96. the apparent recovery but the EUR and other majors at odds with the USD gaining.

EUR/USD: The pair lost some of it mojo seen stuck around 1.1437 down 0.32% from 1.1485 heading to 1.1433 and lower if the economic data disappoints.
GBP/USD: GBP was pressured down to 1.2760 by the time of the EU open. As stocks prepare for a lift upwards on rumors of a better, House Price Index report. Due 08:30GMT. The pair could go as low as 1.2748 before corrections are seen.
USD/JPY: With “risk” back on the USD rallied against the JPY at the time of print was at 108.92 a dip to 108.60 is plausible before maybe rallying back to 109+

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Related Links:
https://blog.xtrade.com/homepage/the-market-is-teaming-up-with-action-and-trading-options/
https://uk.investing.com/news/stock-market-news/uk-shares-jump-as-investors-flock-back-to-retailers-hope-for-trade-deal-1419676