US-Mexico NAFTA & Previous weeks Effects

By Kenneth@Xtrade - on August 27, 2018

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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