Pre-Weekend Profit-Taking & Market shake up

Asian Markets opened positively with the Hang Seng leading the way. Motivating the EU markets to be hopeful, however with profit taking lurking reversals and corrections are inevitable for the day.

Assets are likely, going to be oscillating between gains and losses.

Germany 30(DAX30) is probably going to be ranging between (13,016.18 – 13,031.90), with UK’s FTSE 100 traversing 7,695.22 – 7,714.67. Meanwhile, France CAC 40 paves through 5,531.70 – 5,540.03 naturally any break out either in their support or resistant levels will prompt short-term actions in accordance.

Despite the USD slight pull back from 4-month highs due to Thursdays disappointing Inflation data. Geopolitical events render it support for innate abrupt surges.

  • Commodity prices were subdued likely due to profit taking Gold shed -0.26% to 1,320.1 with some possible uptrends
  • Crude Oil has been spotted between 71.14 – 71.62
  • EUR/USD jumping in and out of losses, in a tight range of 1.1892 – 1.1925
  • GBP/USD stages a small come back in between 1.3502 – 3535, following the BOE’s decision to stay pat on interest hiking.
  • AUD & NZD are likely to remain bearish trending low

Later in the day, the US Baker Hughes rig count report is expected to show an increase in activities which might not dampen Oil Bulls sentiment.

Cryptocurrencies’ shed gains from Thursday. Despite upbeat news that Korona coin seeks to address unpinning issues with Bitcoin & Etherum in Europe. Meanwhile, Huawei launches Bitcoin Wallet App.

 

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A Brave New Day For Global Markets

Global markets where in good moods today. The Asian Market remained bullish throughout, initially propelled by soaring Oil prices followed by upbeat earnings reports from the Japnese Glass, Fishery, and Banking sectors.

EU stocks joined the party, Germany’s DAX was ranging between 12,928.44 – 13,034.51 up 0.33%  UK’s FTSE climbed 0.32 %  seen  between (7,629.75 – 7,688.04).

Wall Street came in strong, with NASDAQ surging  6,888.75 – 6,943.25, the Dow Jones extended gains by  0.61%  to 24,692.21 as NVIDIA stocks jumped 1.07%.

USD took a breathe ahead of PCE inflation data allowing other majors to stage a mini-comeback.GBP/USD ahead UK’s construction Output & Industrial Production reports surged only to dip as markets released, the BOE was likely to postpone its interest rate decision and the results were disappointing.

Global oil prices continued the upstream bolstered by Wednesday’s crude oil inventories report which indicated a draw of – 2.197M amid the US. imposition of the sanctions on Iran after withdrawing from the Joint Comprehensive Plan of Action aka Iranian Nuclear Deal. Gold, Silver, and copper also rose,

Markets expect further upside for the USD as investors continue to weight the US impact of US pullout.

 

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Oil Surges, U.S. Exits Iranian Nuclear deal

 

Once again Oil prices have been bolstered back to it’s 3 and half year highs, following the withdrawal of the U.S. from the Iranian nuclear deal, ahead of today’s Crude Oil inventories report by the Energy Information Administration. (EIA). Crude Oil was seen ranging between $69.85 – $71.16 with further upside till the report is released.

Other commodities like Gold, Silver, and Copper have been lingering to the downside, as the USD, (Greenback) gained momentum to 4 months highs as yields climb up.

Global stocks began the day on a rocky footing, after digesting the news of Donald Trumps’s exit from the Iranian deal. However, EU share surged lead by UK’s FTSE  upbeat corporate earnings reports from companies like Voda phone and Royal Dutch Shell.

The day will be teaming with opportunities for trading as the day’s events unfold.

USD  Stocks are expected to rise.

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Markets’ Reaction to Trump’s Tweet on Iran

WTI Oil prices are restless, as some investors took profits ahead of today’s tweet from Donald Trump which will announce his stance on the Iranian deal.

Markets are nervously anticipating Donald Trump’s decision on the Iranian deal. Some think he may just pull out which could be possible but unlikely. Rather, he may suggest renegotiation of new terms.

Meanwhile, markets are cautiously marching around, as Oil oscillates between $69.59-$70.25

  • Gold, which receded earlier in the Asian markets, is now picking up ranging between 1,311.10 – 1,317.50 with some potential upside. Investors attempt to hedge ahead of the U.S. JOLT job reports and Trumps revelations.
  • Asian markets were on an upbeat trend, driven by the tech industry earnings, which bolstered the EU markets. UK’s FTSE may surge 0.2 % while Germany’s DAX 30 pushes 0.1 percent.
  • GBP was bullish in the early hours after returning from its Bank Holiday on Monday.  It did, however, retract on disappointing data from (Halifax House Price Index) reporting 2.2% instead of 3.3%
  • EUR is also sliding on downbeat German reports related to German Exports.
  • JPY sees a bit of demand amid political uncertainties some investors prefer it as a safe haven.
  • Crypto market is resiliently ranging despite Warren Buffet’s swing at them, and ongoing regulatory pressures from various countries amid egoistical bunches from supporters of individual coins
  • The day is set to be full of surprise and corrections while “spread betters” await reports from the US JOLTS job reports and The American Petroleum Institute (API) on weekly Crude Oil stocks, which may indicate a build-up.

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Positive start for Global Markets & Oil

Global markets opened on a positive note today. Asian Shares, gains were mostly propelled by the U.S. Tech industry such as Apple, Tesla, Amazon, and Facebook to name a few. It is expected, that these up winds were the catalyst behind the EU stocks. U.S. Market participants are anticipating Earnings reports from some 40 companies to impact the S&P 500 (USA 500) and other indices.

Crude oil prices leaped to their highest since 2014, crossing the $70 threshold. Driven mostly by Venezuelan and Iranian woes with a projection for further upside if the tension is not averted, despite fundamentals pointing to increased U.S production.

As the U.K. celebrates its early bank holidays, the GBP remains subdued heading for its 100-day support levels recorded 1.3487. The currency was seen ranging between 1.3527 – 1.3565 with uptrends ahead of the Bank of England (BOE) rate decision later this week.

The EUR does not seem to be faring well amid a deluge of disappointing data such as the Germany Factory Orders which fell by 0.1%.

The USD consolidated near 4-month highs. Pricing in June might be in for another possible rate hike.

Last week’s NFP results were noted as positive, despite a miss of 26k from the forecast of 194k. The unemployment rate dropped from 4.0% to 3.9% a catalyst cementing upcoming rate hikes.

Gold prices receded along with other commodities. The U.S. dollar index, which gauges the USD’s strength versus a basket of six major currencies, surged to $92.59.

Cryptocurrencies slipped as Azerbaijan warns of taxation on gains in this arena.

Markets participants look to upcoming FED speakers comments for direction.

U.S Non-Farm Payrolls & Profit Taking.

Market participants are anticipating the day’s release of the U.S. Governmental payrolls report (NFP) with the expectation of at least 86,000 additional new employees. Forecasts suggest 189k vs 103k from the previous month with upside trends for the USD.

The report comes on a day when investors seek profit-taking ahead of the weekend. Thus amid disappointing Spanish, Italian, and EU Purchasing Managers Indexes (PMI) EUR/USD gave up hopes ranging between 1.1956 – 1.1995 with a possible downside, along with GBP/USD which continues to slide due to political uncertainties and ongoing Brexit saga.

Perhaps ECB Mario Draghi may finally get what he has been hoping for EUR “PARITY” with the Greenback USD

Meanwhile, US stocks have been diving down on disappointing Earnings reports and possible Trade war outbreaks which, thus far reports points to a conclusion without any major breakthrough except for agreement on some front though details have been obscured for the time being. With Alibaba reporting and Buffet’s purchase of APPLE, shares reversals are not ruled out

On the other side of EU, stocks flourish gains capped by a miss in the earnings from the Banking sector.  Asian stocks were mostly low all throughout as Japan enjoys another holiday (Greenery Day).

Oil continues to be influenced by increased U.S. productions activities and political tensions surrounding Iran, the USD, remains poised for possible up trends ahead of the Baker Hughes rig count which could reveal and increase WTI Oil was down 0.18% to $68.31 ranging between 68.14 – 68.64 jumping with small gains and losses. Gold was met with a similar fate with other metals.

Interestingly the Crypto-currencies thrive adding on to gains the BTC/USD  was seen between 9,177.7 – 9,875.0 ETH/USD caught between 716.99 – 808.79.

Despite the volatility surrounding the release of today’s events, it is a great trading day.

 

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