Trade Tension Thaw, Helps Stocks. USD GDP & Earnings Reports To Be Considered

By Content-mgr - on August 29, 2019

Trade Tension Thaw, Helps Stocks. USD GDP & Earnings reports to be considered.

On the economic calendar, there is a deluge of reports from the US likely to support bullish trajectory for the USD, Global stocks and perhaps some of the commodities.

The US Gross Domestic Product report is considered as a primary gauge to measure the US economy’s “health” a reading above the forecast of 2.0% will support the USD keeping it buoyant, however, if any of the metrics are not met, the disappointing market expectation the US dollar may weaken. Given way to assets inversely correlated to flourish.

There are Earnings reports from BEST BUY, GUESS, WALT DISNEY and some 58 or so companies reporting with likely bullish undertones.

China declared, it shall not indulge in any retaliatory action against the US on its recent imposition of tariffs, rather prefers to focus on resolving the debacle. Meaning the posed meeting between the two Countries in September is still on the docket.

Meanwhile, Geopolitics takes on complexities propelled by tweets and received by super hypersensitive market participants in who’s visibility is clouded.

Global Stocks:

By the time of print 10:25 GMT Global stocks were largely bullish. The Asian stocks, ended their trading session mixed, however, The Australian ASX i.e. Australia 200: was observed bullish up 0.10% at 6,507.40 with a resistance set at 6,522.5 Wall Street is likely to be blossoming today as about 11 sectors on the S&P are turning hawkish

USA30: The Dow was spotted tackling on gains up 0.88% at 26,266.0 in a range between 25,930.0 -26,283.0. The 2nd resistance at 26,315.0 followed by a period of a “petite” downward correction in search of more wings to perhaps rally to a 3rd resistance of 26,377.0 as per our technical analysts.

Germany30: Was spotted up 1.14% at 11,827.0 at the time of print. Ranging between 11,625.8 – 11,832.2 a 2nd resistance level at 11,849.5 is very likely before the US market opens. Knee-jerking to the 3rd resistance at 11,873.00 is attainable. We just not sure exactly when during the day this will occur.

Italy40: Looking bullish up 1.72% at 21,357.00 from lows of 20,964.50 to highs of 21,442.50 and maybe more to 21,450.00 supported a reprieve in the Italy political reorganization.  

UK100: With the Pound down the FTSE100 turned bullish also helped by Oil prices, Caught up trending 0.85% at 7,180.3 from lows of 7,080.8 – 7,185.5. The 2nd resistance to 7,195.0 is in the pipelines to test the 7,200.00 level.

Commodities:

The commodities are mixed in general, however, our focused assets like Oil and Gold continue to roller coast.

  • Oil: On Wednesday the oil reports from the EIA, Energy Information Administration all confirmed the American Petroleum Institute findings of a draw nearing 10 million barrel. As per our forecasts, Oil prices did zip across to highs above our resistance level of 56.50. However, in light of the Oil politics price were brought back to deal with the realities of the Status Quo. After Investors have studied the Wednesday report, it is likely Oil WTI prices may be supported above the 56.00 bbl. Threshold. With a trading range between 55.44 – 56.21 up 0.57% with 2nd resistance at 56.42 and a 3rd possible resistance at 56.82.
  • Gold: Gold was also defiantly jumping in and out of gains. Spotted trading down 0.18% at 1,546.25   ranging between 1,545.85 -1,559.75 slips to 1,530.0 could be realised

FX Market:

It could be summed up that trader are RISK-ON in the approach meaning they are attempting to trade on riskier assets away from the safe havens. Even though a considerable amount of traders conducts their activities in close proximity to the Safe-havens. The AUD is likely going to extend some gains vs the USD. Meanwhile, let’s look at our usual pack.

  • USD/JPY: The pair was seen trading between 105.83-106.36 with further upside to 106.48 possible at 106.25 up 0.13%
  • EUR/USD:  The pair was subdued and is likely to be the mode of the day’s trading. Caught at 1.1076 trading between 1.1070-1.1088 Downside to 1.1055 is in the pipelines.
  • GBP/USD:  GBP has been kicked to the side with Prime Minister Boris Johnsons move to silence parliament. The Cable was locked 1.2182 – 1.2233 seen at 1.2192 down 0.14% an abrupt slip to 1.2125 is possible.

The Cryptocurrencies.

The Cryptocurrencies were observed down-trending today as well. 11 out of the top token were caught bearish. BTC/USD was seen latched between 9,358.2 – 10,291.0 down almost 6.29% at 9,500

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