Italian Political Turmoil drives the Market.

The EUR was unable to crawl up significantly yesterday before the announcement of Italy’s new Prime Minister, the former IMF Director Carlo Cottarelli. The EUR’ plummeted below  6-1/2 month lows, now testing 1.15 support handle. Further downside movement is expected.EUR/USD was ranging between 1.1587- 1.1639 at the time of print 07:27GMT

The USD also lost some steam but remains relatively high as investors look out for the upcoming Fed rate hike. The Dollar Index/DXY trending between 94.28 – 94.70.

Some Market participants jumped ship in risk aversion, The JPY was the currency of choice as the usual Safe heaven rallied.

Asian shares were down trotting. EU Shares also traversed on a losing streak.

Germany 30 /DAX30, UK’s FTSE, France’s CAC40 and European Stoxx 600 was down some 1.3%, while Italian bond selloff like its doomsday. Asain shares shared the same weak sentiment. However with the US-North Korean summit back on the table support is Asian shares are expected.

Commodities were also driven down Gold, Silver, Oil remains bearish while Aluminum, Nickel, were Bullish.

Oil lost -1.7% by 09:27GMT ranging between 66.44 – 67.21. further downside is anticipated with the release of the API American Petroleum Institute’s weekly oil stock which is expected to report increase stockpiles on Wednesday.  Russian- Saudi collaboration to end the production limitation on OPEC members while filling up any vacuum left by Iran and Venezuela sanctions sent Oil prices nose diving.

The Russian Ruble and oil giants in Russia like Rosneft felt an abrupt selloff deepening the gap between the USD/RUB

Cryptocurrencies linger hopelessly down although some analysts predict a strong comeback as the Blockchain technology becomes more and more attractive for the establishment.

With the US & UK back from their Memorial and Spring Day celebrations increased volatility is expected.

 

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Is this EUR’s Comeback?

Monday the USD gave up some of its previous gains. Despite possible rejuvenated dealings between North Korea & the US.

The EUR extended gains moving from its 6-month lows up 0.47% at the time of print 06:35GMT ranging between 1.1646 – 1.1733. Upside movement Is still seen capped by Italian saga.

Meanwhile, other majors like the AUD, GBP also extended tepid gains.

All commodities except for copper were pressured down, which is unusual with the USD down, commodities should have surged. However, Chino-US Trade tensions are still weighing on the clarity for a way forward.

Oil sank from previous highs over the $72 handle, caused by increased U.S production. The Baker Hughes Rig count reported a rise of 15 new rigs from 844 to 859 on Friday.  Russia & Saudi Arabia are discussing ways to reclaim market share with the intention to make up the loss of production from Iran and Venezuela. WTI was down 1.78% ranging between 65.81 – 67.48 this would likely put more downward pressure on oil prices until the next update.

UK’s FTSE, France’s CAC40 & Germany’s DAX30 were bullish, unlike the Crypto which has been experiencing a selloff, although investors think any downtrend is a good buying opportunity volatility is keeping novice traders seeking a fast track of profits at bay.

The US & UK remain on holidays The US on Memorial Day & While UK Celebrates Spring holidays.

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The Dollar is still standing tall

The usual pre-weekend profit taking and US President Donald Trump’s latest reaction to North Korea leader Kim Jong Un, by pulling out of the 12 June US-North Korean summit, caused investors to initially scramble to the safe havens like gold and the JPY.

However, with further digestion of the details, it seems the USD consolidated higher than other majors.

Most of the commodities including Oil were trending in bearish mode. Ahead of the Baker Hughes Rig count further short-term downside is seen for oil which was down -0.47% ranging between 70.36 – 70.80.by 07:37 GMT.

EUR/USD was spotted trend between 1.1688 – 1.1726 with a loss of -0.23% GBP/USD was another major pressured down shedding a 0.27% and ranging between 1.3334 – 1.3422.

Global stocks seem to be in recovery mood from yesterday’s shock, the response to Trump by North Korea had a hopeful tone to it soothing investors’ confidence.

EU shares are expected to rebound up with limited gains FTSE, CAC40 & Germany’s DAX 30 are projected to close with gains ranging from 5-8%

Cryptocurrencies are mixed benchmark Bitcoin remains under pressure as the US tightens its grip on regulatory measures. The less popular Coins are however in the limelight today tacking on small gains.  BTC/USD shed -1.83% traversing in between 7,260.0 – 7,654.1 while, XRP/USD was up +1.94% ranging in 0.57708 – 0.63768.

The earnings report from Foot Locker Inc. Buckle Inc. & Hibbett Sports Inc. Before The US market opens could move the dial on Nasdaq, Dow, or S&P. Ahead of the release of US Data on Core Durable goods among other reports, the expectation is for the USD to hold on to gains

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New US Auto Tariffs knocks the Greenbacks socks off!

The downbeat outlook from the Federal Reserve’s last policy meeting. Coupled with the latest threat to auto tariffs from the U.S President, Trump dampened investors sentiment. The USD experienced a minor selloff bout. The US Dollar index had lost 0.22% trending in a range of 93.79 – 93.98 by 07:34 GMT.

Asian stocks slumped as USD retreats. EU markets had a bumpy morning. However, with earnings season ongoing, it is likely to the EU shares will be bolstered by US stocks cropping up

Ahead of US April, Existing Home Sales report, GBP’s Retail Sales and several speeches from ECB members, The GBP, EUR, and JPY are Bullish with upside seen to limited The EUR coming off Six-month lows vs the USD

GBP/USD was ranging in 1.3341 – 1.3380 with a 0.11% rise

EUR/USD was oscillating between 1.1691 – 1.1733 a 0.24% increase from previous close.

Oil was a downward trajectory following Wednesday’s revelation by the Energy Information Administration (EIA)of a buildup of over 5million barrel for Crude oil inventories. WTI Crude Oil was down 0.32% at 07:40 GMT ranging between 71.50 – 71.98

Gold, Silver, Copper where gainers to the upside in a classic case of inverse correlation to the USD. Market participants found their recent low price inductive enough to warrant demand.

Cryptocurrencies: With most of GCC Gulf Cooperation Council countries commemorating Ramadan nearly 30% of Crypto enthusiast are at bay given the impression of a sell of for the crypto arena which is receiving some popularity due to the blockchain infrastructural technology.

 

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USD rocks the boat

The USD remained broadly high vs other major currencies and commodities. The Dollar Index (DXY), was up 0.12% to 93.62 and ranging between 93.51 – 93.98 amid anticipation for the Fed minutes set for Thursday, as well as any developments with the Sino-US Trade Talks which could rock the boat in either direction.

EUR. GBP, AUD, were among the currencies caught in the Downward Spiral. All Commodities except for Gold were shorting/selling.

With Asian shares falling, likely patterns are expected with the EU shares earlier gains made by the Germany 30 DAX30, France’s CAC 40, and UK’s FTSE may all turn bearish.

 

Cryptocurrencies lost their luster Tuesday night despite encouraging developments on the blockchain

 

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Oil takes charge…

Oil prices are on a rising streak. WTI Crude Oil was up +0.51% at 72.72 by 07:36 GMT and ranging between 72.47 – 72.72. Further upside is expected due supply disruptions from Venezuela and Iran brought on by U.S Sanctions.

The USD itself has been relatively strong vs the EUR, GBP, JPY & AUD. To name a few, however with the U.S Treasury Yields, losing grounds the USD may be oscillating in and out of gains perhaps giving up some of its previous gains.

Gold prices also receded giving way to a strong USD.

Asian markets gave up gains hitting EU with a mixed syndrome. Where Germany 30 (DAX30) was seen with a +0.08% increase and ranging between 13,069.26 – 13,144.28.

UK’s FTSE 100 was 0.16% up ranging between 7,855.75 – 7,884.50.

France’s CAC40, on the other hand, was down 0.06% traversing up and down between 5,632.43 – 5,644.66

Cryptocurrencies’ pullback from Monday’s surge. As US and Canadian SEC Securities’ Exchanged commission launch operation “Cryptosweep” The latest crackdown on suspicious crypto investment products is reportedly the largest such coordinated investigation by state and provincial officials.

Ahead of today’s US American Petroleum Institute’s (API) ‘s weekly oil stock report volatility is expected with possible upside seen for the Commodities and other majors

 

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