Global Markets Swimming in Blood Red

Today Global Markets are swimming in blood red.
Yesterday Market Participants were caught by surprise as Brainer UK’s Chief Brexit negotiator revealed that there seems to be a breakthrough. The excitement soothes trader sentiments who choose to go long on the GBP and EUR. Naturally, the rumor only addresses relations with Germany and not with all EU.

FX Market:

Despite the USD letting out a little steam it still remains supported ahead of today’s ADP, ISM, and Crude Oil Inventories among other reports. The bruised emerging Markets have not yet been able to fully recover  USD/MXN  was bearish, down 0.21% and ranging between 19.4462-19.3014. Highlighting the slight weakness in the USD.  However, with USD/TRY the opposite is seen in which USD is bullish, the pair stood at 6.6185 up 0.25% trending 6.5696 – 6.6400, by the time of print 08:15 GMT.

For the Major Currencies:

AUD/USD  once again rose briefly on the surplus trade balance of 1.551B. however quickly drop down to trade between  0.7166 – 0.7211 some corrections are still in the pipelines if the USD fails to gather momentum. Following the release of today’s reports

EUR and GBP stand defiant against the USD jumping in and out of gains in search of support.  The EUR/USD  by the time of print 08:15 GMT,  was seen at 1.1614 – 1.1659 up 0.07% and looking very volatile it could head down or up any moment.

meanwhile, GBP/USD  tries to hold on to 1.29 threshold seen up 0.12% at 1.2921. oscillating between1.2896 – 1.2929.

Commodities:

The Commodities arena is mixed, on one hand. Gold prices rally silently for nearly 3 days as some market participants opt to hedge their investments in these volatile times. While Oil prices remain capricious hit by US-led sanctions and supply constraints.

The Gold spot was seen up 0.51% in trading from 1,201.10 – 1,208.80. XAU/USD was also up trending between 1,195.90 – 1,203.27 a rally of 0.43% was recorded.

Crude oil WTI was seen between  68.42 – 68.78 and very sensitive to move in either direction. Depending on the Crude Oil inventories from the EIA today as well as any development with the ongoing sanctions. Meanwhile, US and India are in consultations to iron out what, India’s position is on continuing to purchase Iran Oil an how it could affect policies between the two nations.

Global Stocks: are mostly in red as Asia lingers on. EU shares also plummetting. with trade war cited as the culprit.

Germany 30, UK100, Italy 40 and France 40 are all bearish hitting 5-month lows.

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The US Dollar Rocks On, Trade Tensions Rock The Market

Ongoing Trade tensions and resolutions to better the US-Canadian relationship in the NAFTA agreement as well as Oil supply constraints amid looming sanctions drives market sentiment.

Emerging markets have been battered lately to the brink of dissolution for some countries triggering what seems to be a massive selloff or deprections of thier currencies.

FX Market:

In tandem to Tuesday’s post, the USD has retained its superiority over a deluge of global currencies. Almost all currency pairs in which the USD is the base currency or prefix is bullish. EM currencies, like the ZAR, are now reporting a recession.

The USD climbed vs the ZAR by 1.59% trading between 15.2606 – 15.6967. At the time of print. 09:00 GMT. USD/TRY was also up 0.36% while USD/MXN  was seen up 0.87%.  Evidence of The USD strength is reflected in the US Dollar Index, (DXY), which is ranging from 95.28 – 95.66.

AUD/USD was up earlier this morning prior to the EU market open, due to better than expected GDP reports. However, the AUD quickly lost ground and the USD trail blazed.

Naturally, the EUR/USD which is near its daily support level at 1.1544 tried to stage an unsuccessful comeback struggling at 1.1582, between 1.1544 – 1.1608 to the downside.

GBP/USD. Has not been able to remove the albatross of Brexit around its neck. News of BOE Governor Mark Carney agreeing to stay on for another year seems to have no effect. The pair were seen trading between 1.2786 – 1.2870 down 0.43%

Commodities:

Commodities were also pushed to the brink as the USD firmed its stance ahead Thursday’s ADP report. Oscillating between small gains and losses.  Gold was seen as trending between 1,196.40 – 1,201.20, Silver is trending between 14.125 – 14.210. WTI Oil which surged on Tuesday beyond the $71 threshold due to warning of Hurricane Gordon eminent approach did not last more but for a few hours. Upon reports that the storm’s intensity was less harsh than previously thought WTI Crude Oil prices began its descent.  Spotted trending down between 68.69 – 69.57.

Global Stocks: Were all in the red, as in negative territory. Confounded by trade tensions and disappointment from the tech Industry as US President Trump up the pressure on tech giants in the FAANG group.

Germany 30:  fell to trade in a narrow range from 12,168.56 – 12,077.69.   UK 100: was also down trotting shedding 0.39% trading from 7,453.2 –  7,410.5. France 40   dropped 0.86% swinging between 5,266.65 – 5,324.00 Italy 40:  which was the only one up post-Tuesday’s market close also succumbed to pressure bowing with the rest however likely to resurge. The Index was seen traversing from 20,494.50 – 20,877.50

Even with some 27 companies announcing their Q2 earnings report amongst them are Verint Systems Inc.( VRNT), DocuSign Inc,( DOCU) and Verifone Systems Inc.( PAY) to name a few. However, Analysts are under the impression that their collective efforts may not be enough to boost the Wall Street significantly enough to flow to the Asian Market to resound in the EU Markets. Unfortunately the recent Nike promotion and Facebooks plight are not doing any justice to the the markets either.

Meanwhile, the Philippines are considering the possibility to legalize crypto trading and transactions for BTC. about 68% of the tokens were seen up. However, volatility is in full play as some investors intend to capitalize on Friday’s US. NFP.

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Is the USD & Markets Back In Full Throttle?

With US and Canada back from their one-day vacation, the Market is in full throttle. Investors and traders are on risk-on mood opting to capitalize on some of the riskier assets which spells out demand for the USD and a move away from the safer havens.

FX Market:

Although Emerging Markets are still cringing. With TRY, MXN gasping for some air. The USD consolidates its stance, As investors, prepare for Friday’s jobs report for more direction.  The DXY was up 0.34% trading from 95.14 – 95.47

EUR/USD fell from its previous day’s gains, however, remains in a familiar range between 1.1564 – 1.1627 down 0.46% at 1.1568 by the time of print at 08:00 GMT. Further downside is contained around current support level with a standard deviation of 0.25% approx.

With the USD up all other majors are in bearish mode. AUD/USD down 0.53% to trade between 0.7172 – 0.7235.  GBP/USD plummets 0.51% oscillating between 1.2875- 1.2824

Commodities:

Most of the commodities reversed gains except for the WTI Oil which surged due to supply constraints ensue by the announcement of Hurricane, “Gordon” which has forced several Gulf of Mexico Oil platforms and rigs to shut down due to safety concerns. |WTI Crude Oil was trading from 69.98-70.44 with possible uptrends crossing the $71.00 bbl mark. If warnings of the hurricane are to intensify. However, price may remain in check as India and China look to buy oil from Iran.

Gold, Copper, Silver, were in a dovish trajectory.

Global Stocks: Although trade tension continue to dominate, China’s tweaking of its economy boosted the Chinese market with a tinge of optimism for Asian Shares with about 17 Companies releasing Q2 earnings reports EU stocks are seen up trending amid sudden swings as investors wait for today’s EU, PPI reports due for release together with the UK’s inflation report and other economic reports from the US.

Germany 30:  is set in a range from 12,311.40 – 12,403.91 at 12,388.04 by time of print 08:00 GMT. Abrupt swings are expected in either direction. to set in late during the European Market session.   UK 100: The UK market has been bullish for  two straight days trending from 7,500.09 – 7,534.75. up 0.12%   France 40  rose moderately 5,385.02 – 5,428.22 while  Italy 40: also moved up since Monday, ranging from 20,455.00 – 20,645.00

As Market participant embraces for the day’s tango movement the surprise will be coming from the usual suspects i.e. Trade Tariffs rhetoric and impact of the hurricane in the US which has already forced some 300,000 homes and office to fold up to safety.

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Not All Hands Are On Deck, US & Canadian Markets On Vacation

The Markets opened this week with a caveat and are likely to be dominated by ongoing trade war rhetoric between the US-China and the reshuffling of the NAFTA deal between The US, Mexico, and Canada.  On Friday Negotiations between Canada n US did not yet any conclusive results.

Not all hands are on deck, as US and Canadian Markets are closed for Labour day celebration which is likely going increase volatility and force investors to look elsewhere to hedge.

FX Market:

Emerging Markets were hit hard with the Trade war Saga, Exotic Currencies remain under pressure as the USD stands tall.

EUR- seems to be gaining unwanted attention as investors look for ways to hedge.

EUR/USD I likely to be in a range of 1.1590 – 1.1625

Commodities:

With the US and Canadian Market closed for labor day Celebrations. Investors laud to the commodities. However, WTI Oil remains sideways trading down 0.03% in between 69.54 – 69.99 by 07:27 GMT with volatility expected to sway in the upside.

Gold, Copper, and Silver were also seen bullish as investors hedge.

Global Stocks:  Are dismal Asia Share were down likely to weigh on EU shares until later in the day. There are only 3 firms reporting on Q2 earnings namely Manchester United plc. (MANU), China Finance Online Co. Limited (JRJC), and China Online Education Group. (COE) which are likely not going move the dial much.

  •  Germany 30:  is set in a range from 12,309.05 – 12,359.58  down 0.26%
  • UK 100: Received some attention as PM Theresa May rules out the possibility of another referendum. The UK 100 rose 0.62% with high and lows of 7,451.50 – 7,487.75
  • France 40: found its bearing between, 5,387.21 – 5,411.78
  • Italy 40:  oscillates between 20,235.00 – 20,350.00

The USD was also lost some of its glory as the DXY reflected a drop of 0.09%  ranging from  95.01 – 95.22. The apparent weakness gave way to the EUR, AUD, JPY to flex their muscle. Not so for the Turkish lira which is still in turmoil.

The Safe havens and commodities, on the other hand, got a break as investors looked to hedge profits the same way most did on Friday.

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Jitters Ahead Of the Long Weekend with US-Canada Labor Day Holidays

As most of the global markets ready for the weekend. Profit-taking amid reignited trade spats between the US vs, China, and Europe is back in the headlines disrupting market sentiment and adding to the capricious trends across the board.

President Trump rejected the first round of EU concession to elevate the tariffs saga. According to sources close to the matter, citing the deal worse than that of China.

In other reports, Mr. Trump indicated his disdain for the operation of the World Trade Organization. (WTO), threaten to pull the US out if the organization does not consider some changes, i.e. “If they don’t Shape up”.

Global Stocks: Fell as tensions mount. Asian Shares have been cringing since late Wednesday while the EU shares jump in and out of losses. Natural the US stock which has been largely bolstered due to Q2 earnings reports, and for a while positive feedback stemming from the US, Mexico, and Canada talks to redefine the NAFTA agreement. Flopped, although S&P and Nasdaq reported sessional highs.

  • Germany 30: Was down 0.91%  by the time of print 08:33 GMT trending down from 12,452.25-12,351.42 at 12,382.93 with now current support anchors.
  • UK 100: struggles to hold 0n to 7,500 thresholds, down 0.23%  and range bound from highs of 7,508.14 to lows of 7,482.75
  • France 40: The CAC 40 (FCHI), was equally battered shedding 0.68%  by the time of print to 5,440.60  and piping down from 5,471.05-5,438.83.
  • Italy 40:  remained parked in bearish territory down -0.66% at 20.365.00 and oscillating between  20,505.00-20,320.00.

The USD also lost some of its glory as the DXY reflected a drop of 0.10%  ranging from  94.77 – 94.55. The apparent weakness gave way to the EUR, GBP to stage a “Petite” come back.  GBP/USD  crossed the 1.30 mark however unable to find more support to shoot up remaining at 1.3014 unchanged with resistance and support set between 1.2993 – 1.3029.

  • The EUR/USD jumps in and out of gains at 1.1667 ahead of today’s EU Core Price Index. (CPI), and Unemployment Rate (Jul), reports for possible boosts. Trending in a range of 1.1660 – 1.1690.

The Safe havens and commodities, on the other hand, got a break as investors looked to hedge profits.

  • Currencies like the JPY and CHF/USD 0.25% rallied against the USD
  • The Gold Spot was up 0.57% at 1.212.00 trending on a path from 1,204.50 – 1,214.80.
  • While XAU/USD exhibited similar traits up 0.54%  from 1,198.66 – 1,208.85

Oil prices have been boosted by the reported draw in US crude oil inventories and a times sanctions.  However, the same US-led sanctions are causing havoc amid supply constraints to weigh on Oil. Crude oil prices swung past $70.36 resistance levels after trading sideways for nearly a week. Upside movements are seen as limited with abrupt downward swings in view. Trading between 69.92 – 70.36, ahead of today’s Baker Hughes Rig Count.

In the cryptocurrencies front. About 50% of the tokens are in a bearish mode including the blue-chip BTC which has receded from the 7,000 level to lingering around 6,960.9 albeit still up by 0.45%

As the Q2 Earning season slowly rolls out Wall street cools down with eyes in search for the next driving factors besides the political, trade tiffs Today on the docket are only two notable companies: Big Lots Inc. (BIG) and Golden Ocean Group (GOGL).

Meanwhile, Chinese Computer company LENOVO lunches the first laptop with two screens the Yoga Book C930 with a price tag of $1,164. How this will affect shares are yet to been seen. Investors are also paying attention to developments of the between the US & Canada on the deadline today for NAFTA resolutions.

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The Dollar and Oil Are Up? What happened?

Asian Markets were contacting as apparent weakness spotted in the Chinese Market drags amid the ongoing renegotiation between US, Mexico and Canada for a better NAFTA deal. Asian Shares retreated. The European Stock were also in a dismal state as Trade fears and Real Estate shares plummeted.

The USD is experiencing Capital in follows keeping the USD afloat, as investors price in the changes of a possible rate hike next month at almost 93%. Despite Fed Chair Jerome Powell’s caveat. Meanwhile, and as a direct result the safe-haven Gold losses its luster.  The XAU/USD pair was spotted at 1,202.76 down 0.32% and trading between 1,200.56 – 1,207.91.

In conjunction to yesterday’s post as per our summation, WTI prices were boosted by a better than expected crude oil inventories report from the Energy Information Administration. EIA, in which instead of a draw of 686 million barrels found a steeper decline of nearly 2.5m barrels. Ranging between 69.58 – 69.86 by the time of print at 08:30 GMT.  Some Analysts are under the impression due to supply constraints and sanctions on some of OPEC’s members, the prices of Oil may not exceed the $70bbl mark.

Meanwhile, the usual basket of major currencies EUR, AUD, GBP, CHF, are bearish to the USD except for the JPY which remains defiant. The GBP fell from glory after touching the 1.30 mark, currently knee-jerking between 1.2990 – 1.3043.

Furthermore, with about 30 companies reporting on Q2 earnings including Abercrombie & Fitch Co. (ANF), American Outdoor Brands Corp.( AOBC), and Spark Networks SE (LOV), to name a few, the stocks from these firms are likely, to continue  boosting Wall Street as was the case on Tuesday and Wednesday and may lift the Asian and European share slightly unless their earnings report is very disappointing.

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