Whats Up with Oil?

Wednesday’s have usually been dubbed Oil day since it is usually the day in which market participants, get insights into the US Crude oil inventories. Can Oil own the day? that remains to be seen as we plow through the pros and cons.?

In recent times Oil prices have been plagued by the US Increased production in Shale and fracking explorations, supply woes due to US-led sanctions on Venezuela, Iran couple with trade tariffs wars spiraling between the US and China, as well as between the US and its allies such as Canada and Mexico.

Although some long-term investors may be looking forward to Septembers OPEC Monthly Oil Market Report (MOMR) for clearer direction. The weekly crude oil inventories delivered by, The Energy Information Administration. (EIA), acts as a very significant assessment for some short-term intra-day trading trends.

This week the EIA is forecasting a drop of -0.686M this information generally would have set West Taxes Intermediary, WTI Crude Oil on a Bullish or hawkish trend. However, this is not what is happening currently as the USD, strengthen ahead of the daily deluge of economic reports to be released on, the US-Gross Domestic Product, and Trade reports, the prices of oil sagged as a stronger Dollar, makes it expensive for investors to purchase and hold the commodity.

Although WTI Oil Futures price was spotted around $68.87 bbl.  Which is about $2.44 from the previous week.  With Saudi Arabia dropping prices, China importing oil from Iran, what cautious traders could perhaps expect are knee-jerk reactions to the constant push and pull.

Analysts have noticed downtrends as low as $65bbl and highs near the $70bbl.  With the median range between $68.00-69.00

By the time of print 09:00. WTI was just warming up to rally up 0.07% at 68.58 in arrange of 68.36 – 68.65 with possible upside. The crude oil Inventories report is delivered together with Gasoline Inventories report and others which compliment each other. Hence for example, if there is a build up in the Crude oil Inventories but a draw in Gasoline Inventories Oil prices may still rise.

Meanwhile, EU shares begin to show signs of instability into a dovish corrective mood.

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The US-Canadian NAFTA Renegotiation & The Day’s Outlook

Tuesday, the market has been imbued with optimism following a positive renegotiation between the US and Mexico on the North Atlantic Free Trade Agreement. (NAFTA).

Although details are still obscured. China may find this as unfavorable for them. On the docket, today The US and Canada are to commence talks on reshaping  the NAFTA deal.

There are also some 32 companies reporting on the Q2 earnings. On Monday, it was cited that Best Buy, (BBY) will be reporting, however, this was in error an instead is due to report today at 08:00 EST.

Global Stocks: Global shares rose as Manufacturers and Industries warm up to the opportunities ahead. EU Shares were up nearly 14 days high.

  • Germany 30: Rose 0.07% at by 08:17 GMT ranging between 12,544.60 – 12,595.29
  • UK100: Surged 0.72%  by the time of print at 08:17 GMT. As the UK returns from its Summer Bank holidays, to trade from 7,618.50 – 7,638.74
  •  Italy 40: Has not been faring well lately due to the ongoing Political reshuffling and approval. Italy 40 was 0.74% down sliding from 20,825.00- 20,530.00. The Italian Business Confidence fell below expectation to 104.2 vs the expectation of 106.2
  • France 40: Rose cautiously as the French Consumer Confidence report comes out in line with expectation at 97. The Stocks were seen up 0.15% trending from 5,477.35 – 5,491.65.

Currencies:

  • The US –Mexico talks bolstered the USD, momentarily. However, by Europe’s open the DXY had dropped 0.12% against a basket of major currencies. Ranging from 94.91- 94.64. Allowing the MXN to rally in tandem
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  • EUR/USD tacked on gains to trade between 1.1663 – 1.1700 up 0.18%  ahead of the deluge of economic reports to be released today. Some analysts are under the assumption that these report may for below expectations.
  • USD/JPY was trading between 111.01 – 111.36 indecisively, between gains and losses. As traders monitor the strength of the USD in the face of changing trade agreements and sanctions.
  • GBP/USD amidst the uncertainties around the Brexit Deal or no deal saga, the pair was seen initially as dovish. However, comments from PM Theresa May and UK Trade Minister Liam Fox suggest the UK is not afraid to walk away in case of a no deal outcome. The statements bolstered risk appetite, with the pair breaching the 1.29 physiological mark into bullish territory. Ranging from 1.2862 – 1.2910 and Governor of the BOE, Mr. Mark Carney been asked to remain at the helm for another year.

Commodities:  

  • WTI Oil prices have been trading sideways, in a range of 68.67 – 69.15 as supply concerns and sanctions cloud the short–term view. The US-Mexico meeting on NAFTA made the USD stronger and Oil expensive. Analysts suggest that ahead of today API Oil stockpiles the could be a likely abrupt surge before correction.
  • Gold Spot was trading indecisively between, 1,214.40 – 1,220.70, as Investors were split between riskier assets and safe havens monitoring developments of the US Canadian NAFTA talks.
  • XAU/USD: In the mean-time remains hawkish oscillating from 1,208.15 – 1,214.35

Cryptocurrencies:

As per our post on Monday the bullish trend of the cryptocurrencies continues almost all top 100 tokens tacking on gains BTC/USD seems poised to reach the 7k resistance levels. Currently, the pair is seen up 3.42% trading between 6,700.0 – 6,963.0 with more uptrends expected.

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US-Mexico NAFTA & Previous weeks Effects

In a Summation of the past 12 days, Analysts have observed that Traders and Investors have had ample opportunities to invest and trade in this capricious market environment in recent days. The Market rides on the sentimental response from trade tensions, Brexit woes, socio-political events and the announcement of various Q2 earning reports. Although at times the market is clouded with a lot of noise adherence to the basics is beneficial always as emotions are kept at bay. Today on the Docket are NAFTA talks between US-Mexico. Earning reports from Best Buy and some 13 other entities to release their reports are likely to boost the US Stocks US 30 and Nasdaq are expected to be on a Bullish trend.

Global Stocks: Global Shares roller-coasters with the plight of the Turkish Lira. However, stabilize with optimism and ease in trade tension pushing global stocks into a hawkish correction.

  • Germany 30: Today, rose for the first time in 12 days touching the 12,500 threshold however, struggles to find support there. Meanwhile registering a rally of 0.70% by midday in a range of 12,427.80 – 12,500.71
  • UK100:  was supported surging some 0.18% to 7,577.49 post midday oscillating between  7,557.67 – 7,587.19 despite the fact that the UK market closed for Summer Bank Holidays.
  • Italy 40: Has not been shining well lately and today remains in a dovish territory. Down 0.31% trending from 20,790.00-20,560.00. Hit by the political ironing out in Italy to which both the 5-star movement and the League Party are in wait for the Presidential approval of their proposed Prime Minister.
  • France 40: Climbed 0.64% to 5,467.17 as trade tensions cool off a bit.

Currencies:

The USD lost some of its lusters on Friday following Fed Chair Jerome Powell’s speech on the future of rate hikes and the current position of the USD. Allowing a basket of major currencies to rally against the USD, The EUR for example which dropped to the 1.13 mark rose to 1.16 before sliding early this morning as the USD stabilized. However, today’s economic events in Germany i.e. The German Business Expectations, Germany Ifo Business Climate Index and German Current Assessment render optimism and support for the EUR resurging against the USD. Although bearish to the CHF, GBP, JPY to name a few.

  • EUR/USD was caught up 0.25%  in a range of 1.1595 – 1.1654 to the upside.
  • USD/JPY The USD effectively bowed to the JPY losing steam at 0.29% trending down from 111.48-110.52.
  • AUD/USD  The pair were struggling in earlier EU trading hours however quickly rose by 0.08%  between 0.7308 – 0.7345.
  • GBP/USD spreads its wings in the sun climbing modestly by 0.28% yet remains vulnerable on Brexit talks. Ranging from1.2829 – 1.2887 and yet unable to break the 1.29 threshold.

 Commodities:

Commodities have been mixed also driven by the behavior or reaction to the USD. With the Feds signaling a possible hold on upcoming US rate hike in September, Traders and investors may opt for some short-term profit-taking. Giving way for the Commodities to climb. Meanwhile, this has not fully manifested.

  • XAU/USD:  rose some 0.12% to range  between  1,203.23 – 1,208.02.
  • The Gold Spot lagged in rallying, however, was found up 0.04% by 13:56 GMT
  • Oil prices remain murky, with stuck in a range of 68.34 – 68.94 after surging close to the $70 bbl mark, 69.16 to exact on the 24th of August then plummeted to $68bbl Oil supply and sanctions weigh. China continues to buy Iranian oil despite the US caveat.

Cryptocurrencies;

The Crypto seem highly elevated starting the week on a positive note most of the tokens were bullish or heading in that direction. Although BTC/USD were up trending between 6,631.3 – 6,769.9 Volatility and corrections are expected by the end of today’s trading day.

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Crude Oil Inventories Report, USD Firms & Lira Parks

Wednesday the market is teaming up with several uncorrelated events which are driving market sentiments and market trends. Today US Crude Oil Inventories are on tap, as well as a deluge of UK’s Consumer Price Index (CPI), Producers Price Index (PPI), US Core Retail Sales and Industrial Production reports. Lace with Earning reports from 46 companies. Including Macy’s Inc. (M) Analysts are under the impression today’s reports are likely to boost the US 30.

Global Stocks:

Global Shares were in search of supportive data as losses from emerging markets weighed. However, EU Share seemed to have pondered on the effect for a few hours and then resorted to ignoring the gloom. The Strong countries on the bloc witnessed stocks tacking on gains.

  • Germany 30: By the time of print 08:55 had managed to rally, 0.28% ranging between 12,369.08 – 12,426.02 with possible upside in view.
  • UK100: was not out of the woods yet, plummeting -0.11% oscillating between 7,600.50 – 7,632.50.
  • Italy 40: Got unfortunate with the Highway Bridge in Genoa which is reported to have killed some 20 people in counting and disrupting business for a few hours. The Italy 40 was down 0.04% trending from   21,125.00 –  20,835.00.
  • France 40: Turned bullish up 0.01% at 5,403.78, however, oscillates between small gains and losses, in a  5,400.32 – 5,417.19

Currencies:

Are lined up in classical correlation and inverse correlation. With the USD above its 56-day average. The DXY, rallied 0.10% ranging from 96.66 – 96.87.

  • EUR/USD With the Dollar up 14 months high, the EUR plummeted. The pair was seen trading between 1.1317 – 1.1350 down 0.19%.
  • USD/JPY The Safe heaven Yen lost some of its lusters. Given way to the USD to climb further ahead of today’s reports. The Pair were spotted trending from 110.60 – 111.43.
  • AUD/USD  could not recover from it fall yesterday down 0.15% ranging from 0.7203 – 0.7244 in reverse mode.
  • GBP/USD has been cringing waiting for a lifeline. Albeit a drop of 0.06% trading between 1.2692 – 1.2735.

Commodities:

  • Commodities were pinned down, as the USD gained.
  • XAU/USD:  Was seen down trotting between 1,185.06 – 1,194.74 a drop of -0.63%
  • While the Gold Spot fell by 0.62% to trade between 1,191.90 – 1,201.70.
  • Oil prices have been dropping ahead of today’s crude oil inventories report, shedding 1.01% to trade from 66.03 – 66.89

Cryptocurrencies;

Cryptocurrencies are highly volatile.  BTC/USD was trading between a range of 5,980.9 – 6,289. Up 2.58% with possible upsides.

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Why Education Is The Key To Trading Wisely?

Education is that thing, that gives you the correct dose of insights and base for success. When you have the appropriate degree of knowledge, taking action becomes second nature. Many people have varying views, on how to approach Trading. Some say, “Start and learn as you progress” while others claim, “you need to have all the Education before you start trading”.

At first glance, trading seems very easy, everyone does it today, the question is, would you let someone plan your house without any knowledge of architecture and design? Probably not. Having the appropriate knowledge is essential. Dealing with money should come with much consideration as there is actually no “Easy profit”.

There is no doubt education is an essential part of the package, for your trading career or endeavours. As it is with any new hobby, profession, or skill. A plan is needed. In which Identification, Familiarity, Practice, and Consistency become the building blocks to Master your Plan and execute it at will.

In the first stages, decide what assets you wish to trade on (Currency Pairs, Commodities, Indices, and or Stocks), then find as much information that you can about it. Focus on a few, that you find interesting and don’t try to read and learn about ALL markets and all assets at once. Remember your plan and stick to it.

You have range information, on several related topics, available to you via a simple google search or from your trading broker. Start with EBooks on specific topics, like, shares, forex, CFDs, Cryptocurrencies, trading analysis or commodities. Enrich yourself with Courses, videos, and tutorials for all levels such as Beginners Course, Trading Tools, and Market Reviews.

All of these are available for XTrade investors and Traders at no cost. Xtrade may supply you with all the information, materials and guidance you may need on your path to intelligent trading and gaining of knowledge.

Now that you are aware of your options and choices, to increase your knowledge, it is recommended that you find, 1-3 mediums that best suits you. Do not hesitate to contact us if you can’t find the right one. Start slow, aim to spend 30 minutes each day to learn more about your intended trades and Online Trading. Knowledge is your ticket to trading wisely.

Sign up with Xtrade today and enjoy free access to our Educational Centre.

A Sigh Of Optimism for Markets As Lira Recovers

On Monday the Markets were churning with the demise of the Turkish Lira the worlds 17th economy. However, after almost 15 hours President Erdoğan and the Turkish Central Bank provide a band-Aid to avert the crisis, temporally the Lira surges to early Tuesday bringing some optimism back to the markets. President Trump and President Junker’s agreement to conclude on a Fairtrade with possible zero tariffs also seems to soothe investors well.

Global Stocks:

Global Markets were mixed to the upside. Except for the Chinese market which hit a snag prompted by a drop in Real Estate, Services, and Tech Earnings. Other markets were fairly bullish. European Markets are rallying with the Turkish crisis halted. There also a batch of 118 companies delivering their reports today.

  • Germany 30: Rose by 0.60% by 0815 GMT. To 12,431.79. and ranging from 12,419.56 – 12,460.90.
  • UK100: Was up 0.24% at 7,661.25 Oscillating between  7,646.25 – 7,668.15.
  • Italy 40:  Is rallying, found 0.58% increase trending  from 21,045.00 – 21,125.00.
  • France 40: Chimed in the hawkish momentum rising up 0.47% at the time of print 08:15 GMT. To 5,437.68 with highs current capped at 5,447.93 -5,427.04

Currencies:

A sigh of relief for Emerging Markets as currencies calibrates in tandem with the throng of events due today, on the docket are GDP reports from Germany, EU as well as The US. Ahead of the economic reports, EUR was seen rallying.

  • EUR/USD Was up earlier ranging between  1.1365 – 1.1433 with a 0.07% rise Analysts suggest uptrends may be capped should any of the economic releases today disappoint expectation.
  •  USD/JPY  has been stuck between the 110-111 ranges for several days with the JPY up. However today The USD is bullish vs the Yen as investors move to riskier assets away from the safe heavens. The pair were found trading between 110.60 – 111.15 up 0.23%
  • AUD/USD  Is bearish ranging from 0.7253 – 0.7283 and down 0.17%
  • GBP/USD Rebounds however still below the 1.28 threshold. Investors remain skeptical on the Brexit saga. Meanwhile, the pair is bullish oscillating between 1.2754 – 1.2827. With an increase of 0.05% Should the economic reports on claimant Count change, employment Change, and average earnings disappoint the GBP may reverse gains.

Commodities:

  • Most of the commodities were hawkish Tuesday morning. Even Gold rallied 0.21% to 1201.40 in a range from 1,199.20 – 1,203.00.
  • XAU/USD: was spotted between 1,192.53 – 1,196.22 up 0.07% with further upside standing at 1,194.72.
  • WTI Oil also rose ahead of today’s API Oil Stockpile report. Rumors suggest a decline which could affect prices negatively.  Crude Oil was found up 0.95%  in a range of  67.34 – 68.00 at 67.84 at the time of print.

Cryptocurrencies;

Once again the Cryptos are experiencing “market diarrhea” in selloff mood.  Reflecting on previous posts. It can’t be helped but to assume CEO of Bitmex, knew something when he stated BTC may drop to 5k before surging to $50k by the end of the year.  Currently, BTC is down -8.02% at 5,995.2. Oscillating between 5,858.6 – 6,499.0

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