Dollar on Fire, Commodities Sink, Wall Street Disarray.

The Turkish Lira continues to wallow with minor correction as the Turkish Central Bank issues assurance to provide enough liquidity to pass through the storm.  Meanwhile prudent investors trading on the momentum of the market opted to buy the USD.

The USD has thus gained considerable wings. The US Dollar Index (DXY), which measures the strengthening of the USD vs a basket of other Major currencies was up 0.07% at 96.43 by the time of print 08:45 GMT. Although there are some 111 companies delivering their Q2 Earnings it is unlikely they would have much of a positive effect on wall street.

Global Stocks:

The Stock Markets were gloomy Monday Morning. It seems the Turkish saga has morphed into all sectors. European Markets were reported to have dropped to levels seen 3 weeks ago.

  • Germany 30: was already down 0.55% by 08:45GMT ranging from 12,380.39 – 12,323.33 with further downside anticipated.
  • UK100: The UK shares plummeted by 0.51% to trade between  7,613.25 – 7,654.78.
  • Italy 40:  Had shed 0.60% by the time of print and moving aimlessly up and down in a tight range from 20,884.11 – 21,004.50
  • France 40: Stood at -0.25%  at 5,400 between 5,385.19 – 5,410.56 and looking south.

Currencies:

Reflecting on Friday’s post. The Status quo prevails. The USD is officially strong and Investors, as well as day traders seeking to capitalize on some short-term, are flocking to the USD. Safe havens currencies like The Japanese Yen and Swiss Franc where resilient towards the Dollar.

  • USD/JPY since Friday the USD lost more ground to the JPY. The Pair were trading -0.36% down between 110.11 – 110.75.
  • NZD/USD  NZD found favor amongst investors last week when Interest rates were left unchanged. The pair were at 0.06% trending between 0.6563 – 0.6594.
  • GBP/USD The continues to linger on bearishly between 1.2731 – 1.2780. down 0.17%.
  • EUR/USD Was hit on the head shedding -0.25% down from 1.1412-1.1365 with further downside in view

Commodities:

Commodities had not recovered from last week, currently plagued by US Trade tariffs woes and the plight of the Turkish Lira which is giving support to the USD, thus with the USD up it makes commodity prices expensive.

Oil Price was in contraction mode. With future global demand, supply uncertainties and sanctions on Russia, Iran, and others to come weighing. Crude Oil WTI was caught down 0.35% at 67.39 by midday 12:00GMT it is expected to be down at least by 0.50% taking a breather to determine new support and resistance. Possibly a small correction before heading down again. In a range from 67.25 – 67.94.Amid OPEC Monthly meeting today. With Saudi Arabia claiming it did not over-pump to avoid creating another oversupplied situation. Hence daily production rose by only 41,000 barrels. that makes the daily production 32.32milliom bdp.

Gold Prices were left in disarray, seen trading between 1,206.10 – 1,221.40 with a potential of shedding 1.00%-1.50% by midday GMT.

Cryptocurrencies;

The Cryptocurrencies arena is mixed in the early Asian Market hours most of all the major tokens were down trotting. However, the expectation is for a slight positive correction as some “Anti Dollar” Traders opted to the Cryptos for some early banking. Meanwhile reports suggest Crypto mining specifically for BTC rose to record levels of nearly 52 million TH/s

Despite the upbeat news, BTC is still struggling below the 6500k mark. Trading from 6,190.0 – 6,548.3

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GBP Plummets Vs USD Russian Ruble & Turkish Lira in limbo

The EUR fell as the USD rose to almost 1-year highs. The Turkish Lira and Russian ruble continue to slide. As members of the Russian government dubbed it an Economic War which they will respond to via other means.

Global Stocks:

Global Stocks were in a fix. The Chinese stocks upheld gains till Market close with the Shanghai Composite sitting at 0.038%. The Upbeat mood may have been too limited to reach the EU shares early Friday EU market morning.  However, with about 24 companies set to announce their earnings before the weekend surprises could not be ruled out.

  • Germany 30: Has been lingering since Thursday in and out of gains. By the time of print 07:15 GMT, it was down 0.76% between 12,525.26 – 12,588.38
  • UK100: With ongoing uncertainties surround the Brexit Stocks have been seen wavering today it shed 0.51% to ranging down from 7,714.79-7,700.31 Perhaps the deluge of economic data set to be released at 08:30 GMT on GDP, Exports, and Industrial production may induce a short-term correction to the upside. Yet remains to be seen.
  • Italy 40: Continued plummeting  down -1.14 with more downwind possibly to  21,310.50 and beyond from 21,447.00
  • France 40: has been confined to a bearish trend trending from 5,433.21 – 5,466.67 down 0.93% with more drag than flight.

Currencies:

As some investors bank and closed positions in a quasi, profit–taking mode the USD extended gains. In that, the USD, remained broadly strong over most of the six major except JPY.

  • USD/JPY was bearish as Japan tweaks its economy to withstand any turbulence i.e. keeping cordial relations with the US and avoiding and ping pong of Trade wars. The dollar dropped 0.30% to the Yen from 111.17 -110.61
  • NZD/USD  Oscillates between 0.6571 – 0.6622 down 0.35%
  • GBP/USD Has not recovered market participants hope the reports on GDP and Industrial Production could revitalize sentiment. For now, the pair a lock in a downward spiral ranging between 1.2736 – 1.2912 yesterday’s resistance level has still not been breached.
  • EUR/USD Following our post yesterday, in which we stated that the “EUR lost its’s Center bot”. we could safely say it still has not found it.  The EUR sagged even further down 0.51% with more down winds before any major corrections, for now, the pair could be spotted trading from 1.1537 -1.1432 down 0.64%

Commodities: Where cringing as the USD gained Gold fell gold prices dipped 0.38% range bound from, 1,213.20 – 1,220.90.  XAU/USD indicated a plummet of 0.35% range bound between 1,205.82 – 1,213.39.

 

  • Oil prices got a slap in the face. As investors are sensitive to developments in the heating trade disputes between the US and China which could halt economic increment and a healthy demand for fuel.
  • Ahead of today’s Baker Hughes Rig Count Oil contracted dropping from 66.91-66.16 steep decline of 0.55%

 

Cryptocurrencies;

  • Unlike Thursday when about 88 of the 100 major Token were bullish the number of Bullish tokens today have dropped BTC /USD are 1.30% up hover still struggling to hold onto the 6500 handle perhaps the corrections will come in during the weekend.

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Russian Ruble Tumbles On Trump Sanctions Amid Earnings Report

The Russian ruble and the Turkish Lira plummeted, as the US dished Russia with sanctions for the poisoning of spy agents. Markets were generally optimistic on several fronts. Following Wednesday’s gloomy outlook. Today some 260 earnings reports are due to be released. While the US and Japan meet for their first bilateral meeting to avoid exaggerated trade tariffs.

Global Stocks:

The stock market was left dull yesterday with Wall Street down. However early Asian Market open, China lifted Asian shares. Likely the upbeat mood will be transferred to the EU pushing shares up. US shares are then possibly going to rally as the earning reports are delivered.

  • Germany 30: Was down 0.12% at 12,633.54 by 07:40GMT and ranging from 12,586.23 -12,704.58. Market participants believe the DE 30 will raise during the day.
  • UK100: Was the odd one out bullish this morning with gains of 0.75% which is believed could be shed by end of the day to close dovish.
  • Italy 40: Has been pressed down ranging from 21,555.00 – 21,797.50
  • France 40: Is lingering in bearish mood between 5,468.64 – 5,499.19 perhaps when wall street opens France 40 may catch some positive winds is yet to be determined.

Currencies:

The USD lost some ground to the JPY as China’s Yuan also gathered some steam against the dollar. USD/JPY were trending from 111.44-110.71. Further downside is viewed as the expectation for today’s US jobless claims are likely to be negative, while the JPY gets a boost from a possible upbeat GDP.

 

  • NZD/USD is bearish as the RBNZ gives a dovish outlook on Interest rates, which was left unchanged at 1.75% The pair were spotted between 0.6633 – 0.6763 down 0.51% with further downside in view.
  • GBP/USD has not been able to recover from the sell-off mode in a tight range of
  • 1.2842 – 1.2912
  • EUR/USD lost its center bot and was down 0.11% at 1.159.7 ranging between 1.1576 – 1.1619.

Commodities:

Another green day for commodities Gold edges up as the USD shrinks. The Gold spot was up 0.05% trending between 1,218.40 – 1,225.10. while XAU/USD extended gains by 0.03% range bound between 1,210.87 – 1,217.34

  • Oil prices rose after falling on Wednesday on Supply concerns, even though there was a draw of nearly 1.5million barrels market participants were disappointed prices dropped to 66.36 before climbing up 0.08% to trade between 66.50 – 67.41 further upside beyond this range is unlikely to occur today.

Cryptocurrencies;

After several tough days for the Cryptocurrencies. 88 out of the popular 100 tokens are bullish. BTC/USD was climbing, up 0.14% to range from 6,128.2 – 6,549.3 with further upside likely to be a challenge. Investors are waiting to see if BTC could hold on to 6500 as resistance after fall more than 4 days straight.

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Oil Inventories, BTC Snag & Some Failed Earnings

The Markets have been very receptive to acting in tandem with market frail sentiment and the various impacts from Earning reports. On Tuesday Snap Inc. and other earnings reports boosted Wall Street and US 30. Today there are 307 companies to release their earnings amid rumors that about 100 companies will have a negative impact on global Stocks.

Global Stocks:

Global stocks were undeceiving ranging. Asian Stocks were up for a 4th day on upbeat earnings reports from the US. However, EU markets Wednesday EU morning was gloomy on a dovish path.

The Earnings report on Monday lifted wall street and gave Asian Stocks a boost which was reflected on EU shares. Furthermore, with Corporate earnings down it is likely to reflect in the EU and perhaps drag onto the US. Amid US readiness to impose another 16 billion taxes on Chinese goods.

  • Germany 30: Had plummeted by 0.09% by 09:54 GMT to range between 12,587.00 – 12,654.14 investors believe the trends could change to bullish in the late afternoon when the US markets hopes.
  • UK100: Was up 0.54% in bullish moods recovering from the brief downturn. Trading between 7,709.00 – 7,761.75.
  • Italy 40: is rising range bound between 21,785.00 – 21,930.00 and up 0.36%
  • France 40: Was trying to stay out of the red zone, yet caught 0.07% trending to the downside from 5,530.02- 5,512.78, corrections are expected later during the day.

Currencies:

  • USD receded from previous gains. Giving way to EUR, JPY, MXN for now.
  • EUR/USD has been trading sideways between 1.1584 – 1.1628 in and out of small gains
  • USD/JPY has been locked to the 111 handle. Today USD dropped a few pips more to trade between 1.1584 – 1.1628 down 0.40%
  • GBP/USD is hit hard with Brexit weighing down 0.25% oscillating 1.2960 -1.2893.

Commodities:

Almost all Commodities have been generally hawkish Wednesday morning.

Gold climbed 0.16% reaching the 1220.20 handle. Silver up by 0.15% Copper is on a sideways trend.

  • Oil prices rallied ahead of today Crude Oil inventories report which is suggested that there would be a likely drop at the drop-off point in Cushing Oklahoma of nearly -3.333million barrels.
  • The draw together with the imposed sanctions on Iran on Tuesday which is constricting the Iranian economy and all who do business with it, gave spport to WTI crude oil rally, only by 0.04% up to trade from 69.05 – 69.36 once again it seems prices are locked down shying away from the $70 bbl psychological mark. Should the Inventories report support market sentiment, standard deviations are expected to be manageable in the ballpark of 5-45 pips give and take. Meaning upside movement is limited with more room for the downtrend.
  • Sudia Arabia after slashing it September prices reports on supply limitations.which could force prices up or down.

Cryptocurrencies;

Cryptocurrencies are down. BTC is down – 8.04% below the 6500 mark with more downside in view. As the US SEC, Security Exchange adjourns decision of Bitcoin ETF. Allowing listings of an Exchanged traded fund backed by the largest digital currency. Could this be the plummet Arthur Hayes of Bitmex caveated upon.?

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US Slaps Iran With Sanctions, Asia Up on Earnings

Tuesday Tango, The Markets are witnessing corrections and change of trends while the China-US trade tariffs morph into the unknown. Meanwhile, US sanction against Iran is going to take effect today despite pleas to US President Trump from allies amid Wall Street gains

Global Stocks:

While Earnings Reports dictate the pace of triumph for Global markets. On Monday Netflix and others Wowed markets with upbeat reports which lift not only the US Shares, however it impacted the Asian and EU stocks in a Bullish way. Today with some 383 entities scheduled to report their Q2 earnings including name such as CEVA Inc.( CEVA), Crocs Inc. (CROX), Bluerock Residential Growth REIT Inc. (BRG), Avis Budget Group Inc.( CAR) and others. Investors are banking on another positive run for Global markets.

The Earnings report on Monday lifted wall street and gave Asian Stocks a boost which was reflected on EU shares.

  • Germany 30: rose 0.70% to range between 12,644.74 – 12,740.12
  • UK100: jumped up 0.47% to trend between 7,678.17 – 7,748.25 with more upside.
  • Italy 40: surged 1.20% ranging from 21,635.00 – 21,845.00
  • France 40: was also up trending 0.52% perhaps up to a 1.00% high oscillating between 5,490.08 – 5,528.21

Currencies:

  • The EUR has been rallying in a confined around the 1.15 handle since Friday. Market participants forecast a climb above 1.1615 and more. EUR/USD was up 0.038% with lows at 1.1551 and highs 1.1608 as the first resistance level.
  • GBP/USD has also been bullish after sliding last week Thursday on BOE’s weak forwarding guidance. GBP/USD rallied 0.10% to 1.2956 with further upside is seen should the Halifax House Price Index beat market expectation. However, with Brexit weighing should the report disappoint the GBP may tumble down. The current expectation is bullish with some knee-jerking moments before down trending slightly.
  • USD/JPY, even though the used lost a bit of traction USD/JPY was locked in a range from 111.00 – 111.42 down 0.10% and bearish.
  • AUD/USD has been Hawkish flying since early Asian Trading hours following the RBA’s decision to keep interest Rates unchanged at 1.50%  the AUD climbed vs the USD 0.49% in a range of 0.7382 – 0.7439

Commodities:

  • Gold surged Tuesday morning trending in a range of 1,215.60 – 1,224.30 should the USD continue to recede XAU/USD could climb above 1,216.21 resistance level if not remains tight between 1,207.41 – 1,216.21
  • WTI Oil price also rose on by 0.54% above the $69 handle ahead of the day’s API American Petroleum Institute Report on weekly stockpiles Crude oil prices are seen oscillating between 68.81 – 83

 Cryptocurrencies:

By Friday the Cryptocurrencies were nose-diving and unable to sustain consistency.

BTC fell below the 7 k handle only to regain some ground. BTC/USD was seen trading from 6,847.0 – 7,150.0

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US Non-Farm Payrolls Grows Dollar or Not?.

The USD remains broadly strong at two-week highs, over its counterparts including the Chinese Yuan. Analysts are under the impression that the US Dollar Index, DXY, which measure the strength of the Dollar vs a basket of other majors is likely to remain hawkish, seen ranging from 95.12 – 95.37 ahead of today’s NFP, Non-Farm Payrolls. Which is expected to come out at 193k should the expectation be met or exceed the USD is bound to surge a bit more. Knee-jerking is highly likely.

Meanwhile, market participants are looking out for another 63 companies set to deliver their earnings report. Kraft Heinz Co,( KHC), Groupon Inc. (GRPN),  are some of the notable firms on the docket today.

Global Stocks:

Global stocks have been mixed plagued by ongoing trade tariff rhetoric. Asian Shares were mostly capped initially weighing on EU shares. However EU shares are expected to recover losses as Financial and Technology heavyweights raise prospects with a slew of upbeat reports likely to come from the UK’s Royal Bank of Scotland,(RBS) and perhaps France’s Credit Agricole,(CAGR). Will US shares are forecasted to rise in tandem with earnings releases.

  • Germany 30: Recovers from losses up 0.50% in a range of 12,562.40 – 12,615.62
  • UK100: jumped up 0.47% to trend between 7,591.75 – 7,617.50
  • Italy 40: which was gravely impacted manages to reverse losses pushing up 0.57% to range, between 21,324.44 – 21,528.94
  • France 40: Rose modestly by 0.32% recouping losses oscillating between 5,459.65 – 5,479.78

Currencies:

  • The EUR/USD is pinned in a downward spiral. As USD gains and further pinned down due to disappointing economic data release on the EU’s Service PMI, and Retail Sales.
  • GBP/USD sold off to the amazement of market participants who though the BOE’s rate hike would encourage a surge in value for the GBP. Mr. Carney’s caveat in the forwarding guidance did not sit well with investors. As he warned of a slower hiking cycle that initially expected linked to the Brexit. GBP/USD, was down 0.10% lingering around 1.3005 handles, range bound between 1.2976 – 1.3028.
  • USD/JPY, on the other hand, was bullish yet upside movement seems capped around the 112 handle. Support and resistance levels for the day are noted to be in the ballpark of 111.61 – 111.83. Standard deviations will be anywhere from 10-50pips.
  • AUD/USD among the odd gainers was the AUD, which rallied on the back of upbeat MoM and QoQ Retail Sales.

 Commodities:

  • Oil Prices have been jittery lately slapped by the ongoing trade tiffs, in the latest row China has suspended imports of US WTI oil. In early EU trading hours, Oil was in a bearish state, after climbing late Thursday. Although reports claim the levels at one of the main inventories hub had receded to 4-year lows the overall inventories in the US had risen by nearly 1.5 million barrels. Perhaps one of the reasons which the Saudi’s choose to cut prices on its Arab light oil to secure more buyers. WTI Crude Oil prices are expected to correct ahead of the USD NFP and later the Baker Hughes Rig Count. WTI was seen oscillating in and out of gains between 68.53 – 69.19.
  • Gold has not been able to attain any significant uptrends as the USD Shines.

Gold spot was down 0.36 % range bound between (1,212.50 – 1,218.50). While XAU/USD remains volatile with tepid gains and losses. Ranging from 1,204.66 – 1,210.49.

Cryptocurrencies:

Following up from yesterday’s post. The Crypto arena is contraction phase. As investors take profits. And look to riskier assets like the USD to capitalize.

BTC lost more ground down -2.77& trending from 7,282.1 – 7,605.0. It seems Bitcoin was unable to hold on to the 7500k handle. Crypto enthusiasts are ready for another downtrend before any significant surges. If Bitmex’ CEO Arthur Hayes’s reflection a few months ago. That Bitcoin could go to the 5k mark before hitting a 50k height is something traders could ponder on.

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