The Aftermath of U.S. Rate Decision Part II

The USD has been swing between tepid gains and loss as markets digested the day’s events. Clues from the day’s events have thus far been mixed, U.S. ISM Non-Manufacturing PMI was disappointing keeping the USD corned.

GBP was also unable to hold onto recent gains as disappointing Service PMI weighs, a reported 52.8 vs forecasted 53.5 was too heavy on the cable was seen ranging between   1.3542 – 1.3630 at the time of print dropped -0.22% to 1.3545. In the basket of major currencies EUR, AUD & JPY were the few to cling on to gains.

In the commodities arena both Crude and Brent gave up earlier gains assumed to come from supply cuts in Iran as Iran attempts to defile possible sanctions profit taking and new of possible increase in rig count limits upside movement for oil.

Meanwhile the Crypto blossom with Bitcoin tacking in 1.9% from its previous close.Safe havens like Gold, along with other metals were very bullish

Meanwhile, Global stocks turned bearish as investors look to the usual pre-weekend profit taking coupled with a gloomy release of earnings reports

Eyes remain fixed on Friday’s U.S NFP Non-Farm Payroll to possible left the USD on an uptrend ahead of the weekend.

 

 

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The Aftermath of U.S. Rate Decision

As Markets digest the consequences of the Fed decision to stay Pat at 175 basis point (1.75%) the USD slipped below its recent highs recovery was limited. The index stood at 92.508 giving way to a basket of other majors (EUR, GBP, JPY, AUD, CHF) to take lead alongside most commodities, Gold leads the back. ranging between 1,305.20 – 1,313.80.

WTI Crude was lagging as disappointing U.S. Energy Information Administration (EIA) report revealed exuberant levels in inventories. However, as focus shifts back to Iranian tensions both benchmark WTI Crude and Brent leaped up joining the uptrend.

WTI Crude was oscillating between the Resistance and Support levels of   67.57 – 68.27 While Brent was found ranging 72.94 – 73.64.

China-US trade talks dominate headlines weighing on consumer goods as well as Asian markets. The Japanese market’s closure for Constitutional Day celebration means the Nikkei, MSCI is all down for the day.

Cryptocurrencies remain quiet Bullish mostly ranging. This comes as news of Goldman Sachs announces its desire to add Crypto contract without trading and South Korea’s lawmakers advancing a bill to legalize initial coin offering. (ICO).

As the day unfolds events from the Financial Calendar will add to the day’s volatility.  On the Docket are the EU Consumer Price Index (CPI), GBP Service PMI, US ISM Non-Manufacturing PMI.

Several companies will be reporting on quarterly earnings to keep the stock market rocking eyes remain on the U.S. Nasdaq, S&P, Germany’ DAX30, France’s CAC40, & UK’s FTSE.

Loaded with great trading opportunities

 

 

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Oil Day Part II and FOMC Rate Decision

As per expectation, US crude slipped once again to 66.97 following U.S. Energy Information Administration (EIA) report which shockingly revealed a build-up in stocks. The prediction of 0.739m barrels was exceeded by nearly 5.5m barrels at a whopping 6.218m barrels. WTI Crude began recovering yet remains bearish, perhaps later sanction scares my boost prices.

While The Automatic Data Processing National Employment report gave optimism to the USD 204k vs forecast of 200k pushing the greenback upward to nearly 4-month highs, at this stage Analyst predict and inaction from the Fed may not have a lasting effect on the USD. Any gains accumulated on the back of the USD’s earlier slip have been eroded. GBP/USD dropped -0.05% to 1.3581 EUR/USD struggles below the 1.20 handle

Shares have remained overly mixed as the Tech industry impresses the Health industry disappoints.

Gold has been knee jerking between gains and losses 1,304.50 – 1,312.50 as investors keep an eye on a safe heaven and quick profit taking.

Meanwhile, the Crypto arena has just been steadily bullish up trending with news of Unicef in Australia lunching a Crypto mining donation platform. Other interesting stunts like a company sending Bitcoin mining into space is causing excitement leading to interest coins. BTC/USD surged +2.45% (ranging between)

 

 

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Wednesday Oil Day and FOMC Rate Decision

The market teams up as investors take their positions in light of various events scheduled for the day, namely the US private sectors employment report known as the ADP, Automatic Data Processing a prelude of the (NFP) Non-Farm Payrolls due on Friday. The latter is a governmental employment report. The weekly crude oil inventories due in at 15:30 GMT, EU’s GDP, Gross Domestic Report and the U.S. interest rate decision rock the trading boat.

Currencies and Commodities sets the Tone with Global Stocks mixed again

The USD slipped ahead of the FOMC rate decision set for 19:00 GMT in which the Feds are expected not to hike. As a result, the Gold rose 0.24% ranging 1,304.50 – 1,312.50.

WTI Crude Oil inventory report from the EIA is on tap indicating a build of approximately 730,000 barrels which is likely to limit uptrend unless further middle eastern tensions are escalated. Gross deviations are not expected at the moment from the range of (67.34 – 67.84)

EU & U.S. shares surge on ongoing quarterly earnings reports supported from the Tech & Mining sector. APPL surged 8.1% beating market expectations, while Asian shares lagged.

Germany’s Dax remains bullish trending in 12,598.46 – 12,753.45 a 1.09% surge. France’s CAC 40 and UK’s FTSE are all on the upside in the pipelines.

On the backdrop EUR/USD surged 0.08% from previous lows ranging between (1.1982 – 1.2140) with possible up trends.

GBP/USD gets a boost from upbeat Construction PMI and weakened USD. However, Brit exit (Brexit) saga and parliamentary shifts weighed on GBP, which was seen at 1.3581 – 1.3664.

The crypto market received a positive outlook this money as risk appetite improved. BTC/USD has been trending in the comfort zone as per the RSI Relative Strength Index between 8,818.0 – 9,174.4. ETH/USD was spotted between 642.11 – 685.88 also in the comfort zone.

 

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The Markets’ Reaction to Labor Day

With most European & Asian Markets closed or light trading due to labor day holiday celebrations markets swings are highly plausible.

In the FX arena the USD remains broadly bullish amid a deluge of notable economic reports set to be released during the day with bullish up trends as investors await the Fed’s rate decision.

EUR continues to be subdued heading for the 50-day support line levels (MDA) Moving day average ranging between 1.2028 – 1.2140 shedding approx. 0.38%

GBP took a nose dive as a direct result of the resignation of Home Secretary Amber Rudd’s immigration scandal amid disappointing economic Manufacturing PMI reports and backlash against PM Theresa May on Parliamentary discretion on Brit-exit with highs/lows of 1.3668 – 1.3773.

JPY loses its luster to USD as risk appetite evolves and investors eye US Fed rate decision amidst ongoing quarterly US earning reports. The USD gains was up 0.3% to 109.63 at the time of print

The AUD languished following the RBA’s (Reserve Bank of Australia) decision to stand pat on the rate at 1.50%, and was found ranging between 0.7495 – 0.7547

Global stocks seem mixed with Asian and EU Indices remaining upbeat.  Apple is set to release its earnings reports after the closing bell which is speculated to disappoint thus weighs on US indices.   The Dow had lost 148 points to -0.61% ( 24,163.15) while Nasdaq dropped – 0.17% to 24,163.15 Meanwhile Germany’s DAX 30 was up with UK’s FTSE & France CAC

Commodities have been subdued as the USD gains, Gold plummeted with Oil which shed its previous gains as investors digested possible Iranian sanctions ahead of scheduled API weekly crude oil stock reports at 22:30 GMT

The Crypto arena continues to face reforms and scrutiny the risk on risk off mode paradigm causes volatility and disparity all crypto are down trotting.

BTC/USD was seen ranging bearishly between 8,818.0 – 9,350.0

ETH/USD also down between 627.42 – 689.09

 

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Amazon, Microsoft, Intel and Facebook Report Earnings: Tech Companies Grow

Stocks kicked off Thursday’s session on a high note, helped by strong quarterly results from some of the biggest U.S. companies. The Dow Jones industrial average traded 70 points higher, with Visa and Intel as the best-performing stocks. The S&P 500 gained 0.5% ad tech rose 1.6%. The Nasdaq composite rose 1%.

Facebook shares surged more than 9% after the company posted better-than-expected earnings and revenue for the first quarter. The company’s number of daily active users pointed to steady engagement in the platform despite backlash from the Cambridge Analytica debacle.

Advanced Micro Devices also posted earnings that topped expectations, sending its stock up more than 10%.

Chipotle, meanwhile, soared more than 14% after reporting a stronger-than-expected profit, boosted same-store sales that easily topped expectations.

Amazon (NASDAQ:AMZN) results due out after the market close will be today’s main event, as a busy week for earnings rolls along.

Besides Amazon, 40 other members of the S&P 500 are also set to report results on Thursday.
Before the market open, General Motors (NYSE:GM), UPS (NYSE:UPS), Raytheon (NYSE:RTN), PepsiCo (NASDAQ:PEP), Time Warner (NYSE:TWX) American Airlines (NASDAQ:AAL) and Domino’s Pizza (OTC:DMZPY) will be the highlights.

After the close, joining Amazon, will be tech giants Microsoft (NASDAQ:MSFT), Intel (NASDAQ:INTC), Expedia (NASDAQ:EXPE), Western Digital (NASDAQ:WDC), as well as Starbucks (NASDAQ:SBUX) and Baidu (NASDAQ:BIDU).

Of the 154 S&P 500 companies that reported first-quarter earnings as of Wednesday, 81.2% topped profit estimates. Analysts and Experts now expect earnings growth of 22%, according to Thomson Reuters data.