Market News Archives - The Industry Spread

Markets in Quiet Mood, Bitcoin is the talk of the Day and FOMC’s Policy Meeting

June 17, 2019 by Nikolas Papas Leave a Comment Filed Under: Market News - European Open Tagged: Bitcoin, Blockchain, Brexit, Capital Markets, FED, financial services, FOMC, Geo-Political Events, global worries, Sino-U.S. trade talks, trading platform

Asian indices finished mixed at the start of the week ahead of Wednesday’s FOMC policy meeting and as trade worries resurface and the attack in two oil tankers in Gulf of Oman weighing on traders sentiment.

The Nikkei225 finished 0.03 percent higher to 21,124 the Hang Seng benchmark in Hong Kong, finished 0.41 percent higher at 27,233. The Shanghai Composite finished 0.20 percent higher to 2,887, while in Singapore the FTSE Straits Times index finished 0.38 percent lower to 3,210. Australian equities finished a lackluster session weaker, held back by a heavy 2.3% loss in the Telco sector. The ASX200 finished the session down 23 points or 0.4% to 6,530.

European session started higher today in a quiet session amid renewed worries about trade relations between the US and China and a rise in geopolitical tensions. DAX30 is adding 0.03 percent to 12,099 CAC40 is 0.19 percent higher at 5,377 while the FTSE MIB in Milan is trading 0.45 percent lower at 20,704. The London Stock Exchange is 0,20 percent higher to 7,360 as the Brexit uncertainty continues.

In commodities markets, crude oil trades slightly higher at 52.20 after a previous turbulence week. Oil is down almost 18% from the high in late April, wiping out about half of its rally earlier this year, due to increased global trade worries. Brent oil also trades lower to $61,57 per barrel as major oil producers have yet to agree on adjustments on output.

Gold gives up 6 dollars to 1,347 as traders are taking some gains off the table. The precious metal broke today below the 50-hour moving average and found support at the 100-hour moving average at 1,346. If Gold breaches that level next stop is at 1333 the 200-hour moving average. Immediate resistance for gold stands at 1,342 50 hour moving average and then at 1,357 the yearly high.

BTCUSD Daily Chart

In cryptocurrencies market, bitcoin (BTCUSD) had an excellent weekend and continues its trip north above the 9,000 mark, the daily low for BTC was at 8,835 and the daily high at 9,251. Immediate support for BTC stands now at $9,000 round figure while next support stands at 8,500 the previous week high.

On the upside, strong resistance now stands at 9,251 the high from Asian session while I expect extra pressure from sellers at 9,500 and then at 10,000. Ethereum (ETHUSD) adding over 12 dollars to 268, with capitalization now to 28.7 billion. On the upside, the immediate resistance stands at 287 the recent high while the support stands at 250 round figure, Litecoin (LTCUSD) also trades higher at 134. The crypto market cap now stands above $284.0B.

On the Lookout: Investors focus will be this week on the FOMC meeting Wednesday. The US central bank is expected to keep rates unchanged at 2.5% this week. The week also sees the Bank of Japan and Bank of England policy meetings.

Later today we await from North America the NY Empire State manufacturing index and NAHB housing market index.

Trading Perspective: In forex markets, USD trades higher at 97.56 ahead of the Fed policy meeting, while the Aussie dollar started flat at 0.6871 while Kiwi trades higher at 0.6508 level after downbeat manufacturing PMI figure flagged further RBNZ rate cuts.

GBPUSD started the week flat trading in a narrow trading range as the bearish momentum for Cable is still intact amid growing concerns over Brexit. The pair hit the daily low at 1.2570 and the daily high at 1.2597. Major support now stands at 1.2550 recent low.

On the upside immediate resistance now stands at 1.26 while more offers will emerge at 1.2641 the 50-hour moving average. Pound shows persistent weakness amid UK political uncertainty and also on the back of global risk aversion, so any uptick can match excess offers.

In Sterling futures markets the open interest increased by 6.9K contracts on Friday, volume, shrunk sharply by around 129.4K contracts.

EURUSD started the day on positive foot trading at 1.1218. The pair trades above and below the 50-day moving average ahead of the FOMC meeting later this week. On the upside, the immediate resistance stands at 1.1251 the 50-hour moving, while more offers will emerge at 1.1267 the 100-day moving average. Support stands at 1.12 round, while more bids will emerge at 1.1150 two week lows.

In euro futures markets, the open interest increased by around 7.5K contracts, volume dropped by nearly 86.7K contracts, reaching the second consecutive drop.

USDJPY trades 0.04 percent higher to 108,59, on improved short term sentiment. The pair hit the low at 108.45 and the high at 108.70. The pair will find support at 108.45, the 100-hour moving average. On the upside, immediate resistance for the pair now stands at 109 round figure. The USD price dynamics will continue to drive the pair’s momentum as traders focus shifts to FED next move on Wednesday.

USDJPY Hourly (H1) Chart

USDCAD started in quite a mood the week and trading as of writing at 1.3412 as the retreat in crude oil prices, Canada’s main export item seems to have added further weakness in the Canadian Dollar (CAD). The pair will find immediate support at the 200-day moving average around 1.3250 while extra support stands at 1.3200 round figure.

On the upside immediate resistance now stands at the 1.35 zone before an attempt to 1.3560 recent high from 31st May.

Dollar Up on “Healthy” Sales, Fed, BOJ, BOE Rate Meets Up Next

June 17, 2019 by Michael Moran Leave a Comment Filed Under: Market News, Market News - Asia Open Tagged: AUD/USD, Bitcoin, Brexit, ECB, EUR-USD, Eurozone, GBP-USD, trading platform, USD/JPY

Summary: The Dollar once again claimed “King” of currencies even as May US Retail Sales missed forecasts, rising 0.5% against an expected 0.7%. April’s Sales though were revised up to a gain of 0.3% against a fall of 0.2% as previously reported. A popular gauge of the Greenback’s value against a basket of foreign currencies, the Dollar Index was up 0.45% to 97.45 (97.05 Friday). New Zealand’s Dollar, otherwise known as the Kiwi (flightless bird) slumped 1.16% (0.6870 from 0.6920), worst performing currency. New Zealand’s Business Manufacturing Index in May plummeted to January 2013 lows (50.3 against the previous 53.0). The Kiwi economy has been hard hit by the slowdown in Asia, particularly Australia and China. The Australian Dollar dropped to 4-week lows at 0.6870 (0.6915), its fifth straight decline. China’s Industrial Production in May slowed to 5.0%, a 17-year low and missing forecasts of 5.4%. Sterling dropped to 1.2588 swept by the wave of overall Dollar strength.
Bond traders though continued to drive yields lower. The benchmark US 10-year yield slipped to 2.08%, near 2019 lows. Wall Street stocks edged lower. The S&P 500 ended 0.15% lower (2,890.00)

Forex Factory – China May Industrial Production Chart – 17 June 2019

EUR/USD – the Euro fell on the broad-based US Dollar strength to 1.1212 (1.1275 Friday) at the New York close on Friday. The ECB forum on Central Banking begins today at Sintra, in Portugal with President Mario Draghi delivering opening remarks.
AUD/USD – slip-sliding away. Despite higher iron-ore prices and last week’s mixed Australian Employment report, the Aussie fell to 4-week lows to 0.68614 before settling back to 0.6875. Overall US Dollar strength and the ongoing trade China-US trade war has weighed on the Aussie which can’t seem to take a trick. Just yet.
NZD/USD – The Kiwi plummeted to 0.6488 after New Zealand’s manufacturing activity nose-dived to the lowest level since 2013. NZD/USD fell to late May 2019 lows. New Zealand’s 10-year treasury sank 3 basis points to 1.63%.

On the Lookout: The week’s events and data reports are fast and furious, but they begin tomorrow. Today sees US Empire State Manufacturing and NAHB (National Association of Home Builders) Market Index. The week’s main event is the US Federal Reserve’s FOMC policy meeting (early Thursday morning in Sydney). The Fed is not expected to change its policy, but markets will be focussed on the US central bank’s economic projections and dot plot forecast. Federal Reserve President Jerome Powell will hold a press conference after with questions from the press fielded.
The week also sees the Bank of Japan and Bank of England policy meetings. Eurozone and Euro area Manufacturing PMI’s due on Friday will also be scrutinised.
Bond markets continue to whisper recession as they drive yields lower. FX markets think that the US is more resilient if the China-US trade war continues, and even worsens. Time will tell.

Trading View US 10 Year bond yield chart – 17 June 2019

Trading Perspective: Without yield support, the Dollar will struggle to make further gains. US yield continue to edge lower. At some stage, the FX markets will take notice of where US yields are. While yields of global rivals are lower, US rates have a longer way to fall. Bond markets are already talking “recession”.
The latest Commitment of Traders/CFTC report for the week ended 11 June saw net total speculative long Dollar bets pared to +USD 54,900 contracts from +USD 89,900. While this is the case, in the four major currencies (EUR, GBP, JPY and AUD), speculative long USD bets against these currencies remained virtually the same. The big reduction in USD longs came from a big build in Mexican Peso longs (versus the USD) as Mexico-US trade friction eased.

Daily FX EUR USD Chart – 17 June 2019

EUR/USD – it’s a big week for the Euro and the focus will still be on the US Fed. After the Euro’s failed attempt on the topside at the 1.1350 area, the Single currency has fallen to one-week support levels near 1.1200. Immediate support lies at 1.1200 (1.12025) followed by 1.1170. Immediate resistance can be found at 1.1260 and 1.1290. Speculative Euro short bets were basically flat at -EUR 86,800 from the previous week’s -EUR 87,600. Look to buy dips with a likely range today of 1.1205-1.1275.
AUD/USD – Pressure mounted on the Australian Battler after China’s Industrial Production in May posted its worst reading in 9 years. AUD/USD hit an overnight low of 0.68614, near 2019 lows before rallying to settle at 0.6880 in early Sydney. The latest COT/CFTC report saw speculative Aussie short bets virtually unchanged at -AUD 63,200 bets from the previous week’s -AUD 63,300. The RBA releases its minutes from its latest meeting tomorrow. AUD/USD has immediate support at 0.6860 followed by 0.6830. Immediate resistance can be found at 0.6920 and 0.6950. Look to buy dips with a likely range today of 0.6860-0.6930. Prefer to buy dips.
USD/JPY – Among the central bank meetings this week the BOJ is expected to be a non-event. The Dollar grinded higher against the Japanese currency to 108.55 from 108.40 on Friday. The latest COT/CFTC report also saw minute changes in JPY market positioning. Net speculative short JPY bets were increased to -JPY 45,200 from the previous week’s -JPY 44,400. With US 10-year yields near 2019 lows look to sell USD/JPY on rallies. Immediate resistance can be found at 108.60 (overnight high 108.586) and 108.90. Immediate support lies at 108.20 and 108.00.

Have a good week ahead all…Happy trading.

Gold Shines, Breaks above 1,354

June 14, 2019 by Nikolas Papas Leave a Comment Filed Under: Market News - European Open Tagged: Bitcoin, Blockchain, Brexit, Capital Markets, Cryptocurrencies, economy, FED, Gulf of Oman, monetary policy, trading platform, UK political proceedings

Asian indices finished mostly lower as trade worries resurface and the attack in two oil tankers in Gulf of Oman weighing on traders sentiment. The Nikkei225 finished 0.40 percent higher to 21,116 and the Hang Seng benchmark in Hong Kong finished 0.83 percent lower at 27,065. The Shanghai Composite finished 0.99 percent lower to 2,881, while in Singapore, the FTSE Straits Times index finished 0.32 percent lower to 3,210. Australian equities finished up 11 points or 0.2% to 6,554. Over the week, the index jumped 1.7%.

European session started lower today amid renewed worries about trade relations between the US and China and a rise in geopolitical tensions. DAX30 is giving up 0.88 percent to 12,062 CAC40 is 0.54 percent lower at 5,346 while the FTSE MIB in Milan is trading 0.32 percent lower at 20,634. The London Stock Exchange is 0.57 percent lower to 7,324 as the Brexit uncertainty continues.

XAUUSD Hourly (H1)

In commodities markets, crude oil consolidates higher at 52.10 after reports that two tankers have been attacked in the Gulf of Oman. Oil is down almost 18% from the high in late April, wiping out about half of its rally earlier this year due to increased global trade worries. Brent oil also trades lower to $61,33 per barrel as major oil producers have yet to agree on adjustments on output. Gold shines and trades higher to 1,356 hitting fresh yearly high, following the recent developments in the Gulf of Oman. The precious metal broke above the 50 and 100-hour moving averages yesterday turning the short-term technical picture to bullish. Gold will find support at the 1300 round figure and then at 1295, the 100-day moving average while more bids will emerge at the 50-day moving average at 1287. On the upside, resistance stands at 1368, the high from April 2018.

In cryptocurrencies market, bitcoin (BTCUSD) continues its trip north to the 8,200 mark. The daily low for BTC was at 8,168 and the daily high at 8,327. Immediate support for BTC stands now at the $8,000 round figure while the next support stands at 7411, the low from the recent trading range. On the upside, strong resistance now stands at 8,327, the high from Asian while I expect extra pressure from sellers at 8,500 and then at 8,700. Ethereum (ETHUSD) gives up four dollars to 254, with capitalization now to 27 billion, on the upside the immediate resistance stands at 287 the recent high while the support stands at 200 round figure, Litecoin (LTCUSD) consolidate retreats from yesterdays high at 128. The crypto market cap holds above $260.0B.

On the Lookout: Geopolitics are driving the markets today, International Energy Agency (IEA) Executive Director Faith Birol commented that recent attacks on tankers in the Gulf raised major concerns for global energy security and oil markets. In the UK, the first Conservative Party leadership contest revealed overwhelming support for Boris Johnson in his bid to become the next PM.

Later today, we await from North America the US retail sales, production and consumer sentiment data.

Trading Perspective: In fx markets, USD trades flat at 96.44 on speculation over Fed rate cut, while the Aussie dollar trades lower to 0.6899 as yesterday jobless rate remained steady at 5.2% in May. Kiwi also trades lower to 0.6545 level as downbeat manufacturing PMI figure flagged further RBNZ rate cuts.

GBPUSD is trading lower today breaking below the 1.27 as the bearish momentum for Cable is still intact amid growing concerns over Brexit. The pair hit the daily low at 1.2625 and the daily high at 1.2621. Major support now stands at 1.26 recent low. On the upside, immediate resistance now stands at 1.2753 the high from yesterday. Pound shows persistent weakness amid UK political uncertainty and also on the back of global risk aversion, so any uptick can match excess offers.

In Sterling futures markets the open interest shrunk by around 6.7K contracts, reversing the previous build. In the same line, the volume went down by just 646 contracts.

EURUSD started the day lower visiting new low around 1.1251. On the upside, the immediate resistance stands at 1.1340 the high from yesterday, while more offers will emerge at 1.1367 the 200-day moving average. Support stands at 1.1219 the 50-day moving average, while more bids will emerge at 1.12 round figure.

EURUSD Daily Chart

In euro futures markets, the open interest increased by 11.7K contracts on Thursday, volume, shrunk by around 307.2K contracts, the largest single-day drop so far this year.

USDJPY trades 0.15 percent lower to 108,21, today the pair hit the low at 108.15 for the second day in a row and the high at 108.39. The pair will find support at 107.84 recent low, on the upside immediate resistance for the pair now stands at 108.71 the high from yesterday. The USD price dynamics will continue to drive the pair’s momentum as traders focus shifts to FED’s next move.

USDCAD makes an attempt higher and trading as of writing at 1.3337 as the retreat in crude oil prices, Canada’s main export item seems to have added further weakness in the Canadian Dollar (CAD). The pair will find immediate support at the 200-day moving average around 1.3250 while extra support stands at the 1.3200 round figure. On the upside, immediate resistance stands at the 1.33 zone before an attempt to 1.3348 where the 100-day moving average stands.

Dollar Steadies Despite Lower US Yields, Retail Sales Next

June 14, 2019 by Michael Moran Leave a Comment Filed Under: Market News, Market News - Asia Open Tagged: AUD/USD, Brexit, EUR-USD, Forex, FX trading, GBP-USD, USD/JPY

Summary: The Dollar steadied, rising modestly against most of its rivals, despite extended falls in US bond yields. Traders were reluctant to get too bearish on the Greenback ahead of today’s US Retail Sales report and upcoming Federal Reserve and G20 meetings. The Euro slipped 0.14% to 1.1275 (1.1290) after IMF Managing Director Christine Lagarde remarked that escalating trade tensions posed a risk to the Eurozone. The Australian Dollar edged lower to 0.6915 from 0.6927 after an Employment report, seen as mixed, heightened expectations of an RBA rate cut. Against the trend, USD/JPY slipped to 108.40 (108.50) and USD/CHF was at 0.9942 (0.9957) as global risk sentiment remained fragile. The Swiss National Bank kept its policy rate at -0.75% and said it could relax its ultra-loose monetary policy. SNB Chairman Thomas Jordan said that the appreciation in the Swiss Franc was due to the escalation of the China-US trade dispute in May.

Y Charts US Two Year Treasury Yield – 14 June 2019

US bond yields extended their drop with the 2-year slumping 4 basis points to 1.84%, a 1.1/2 year low. The benchmark 10-year treasury yielded 2.09% (2.12% yesterday). Expectations for a Fed interest rate cut rose ahead of the Federal Reserve’s meeting next week.
Wall Street stocks rose together with treasuries. The DOW ended 0.46% up at 26,133.00. Brent Crude Oil prices rebounded 2.27% to US$ 61.00 (US$ 59.5) after an oil tanker attack off the coast of Iran.

EUR/USD – The Single currency edged lower to close at 1.2475 from 1.2490 following a failed topside attempt above 1.1350 earlier in the week. The Euro spent the day trading under key level 1.1300 after Euro Zone Industrial Production slipped to -0.5%, against expectations of -0.4%.
AUD/USD – slip-sliding away, the Aussie Battler slid to 0.6915 at the New York close. Australian Employment gained 42,300 jobs against expected gains of 17,500. Once again most of the gain was in Part-time employment. The Jobless rate increased to 5.2% from 5.1% which saw speculation increased for an RBA rate cut at its next meeting.
USD/JPY – slipped to 108.39 from 108.50 against the general Dollar trend. The fall in US bond yields and heightened trade tensions kept a lid to any USD gains against this haven currency.

On the Lookout: Despite lower US bond yields, which are the result of growing expectations of a Fed rate cut in July, currency markets remain unimpressed. It seems bond market traders are more bearish than their currency counterparts. US economic data have underwhelmed with the latest US Employment report underwhelming all expectations. FX traders are reluctant to let go of their preference for the Greenback.
Tonight’s US Retail Sales report could be a game-changer. Median expectations from economists for Headline Sales are forecasting a gain to 0.7% for May from April’s 0.2%. An increase in Motor Vehicle Sales of 5.5% last month is the main contributor.

Forex Factory US Retail Sales – 14 June 2019

China releases its trifecta of key data today, Fixed Asset Investment, Retail Sales, and Industrial Production. Also set for release today is China’s Unemployment rate. Japan reports on its revised Industrial Production (May). Europe sees French Final CPI. US reports finish off the day with Core (ex-autos) and Headline Retail Sales for May, Capacity Utilisation Rate, Industrial Production and Preliminary University of Michigan Consumer Sentiment.

Trading Perspective: Without yield support, the Dollar will struggle to make substantial gains. Market positioning remains well long of US Dollars. A bearish read on tonight’s retail sales could shake FX markets and send the Greenback sharply lower.

EUR/USD – The Euro traded to an overnight low of 1.12684. Immediate and strong support lies at 1.1260. The next support level can be found at 1.1210. Immediate resistance can be found at the key 1.1300 level (overnight high 1.13037). The next resistance level lies at 1.1340. The latest COT/CFTC report saw speculative Euro short bets trimmed to -EUR 89,900 from -EUR 92,400 bets. Net total shorts are still near at multi-year highs. Likely range today is 1.1270-1.1320. Prefer to buy dips.

DAILY FX Aussie Chart – Hourly – 14 June 2019

AUD/USD – The Aussie dropped to a low of 0.69013 before steadying to 0.6915 at the NY close. AUD/USD has immediate support at 0.6900 followed by 0.6870. Immediate resistance can be found at 0.6940 (overnight high 0.69385) and 0.6970. Market sentiment remains bearish on the Aussie and positioning is short. A sharply lower Greenback will turn the Aussie Battler around and send the shorts scrambling for the exits. Australia’s 10-year bond yield slipped 2 basis points to 1.40%. Which is mild compared to the fall in US yields. Likely trading range today 0.6900/50. Look to buy dips.
USD/JPY – The Dollar slipped against the Yen to 108.39 after trading to an overnight high at 108.537. Immediate resistance today lies at 108.60 followed by 108.80. Immediate support can be found at 108.10 and 107.90. The fall in US bond yields and heightened risk tension will cap the Dollar at the 108 level. Japanese 10-year JGB yields were unchanged at -0.12%. Look for a likely range today of 108.10-60. Prefer to sell rallies.

Happy Friday and trading all.

Equities Mixed as Chinese Cues Dictate Directional Bias, US Futures Green on Rate Cut Hopes

June 14, 2019 by Karthik Subramanian Leave a Comment Filed Under: Market News - European Open Tagged: Brexit, Capital Markets, economy, FED, G20 summit, Middle East, monetary policy, OPEC, Sino-U.S. trade war, trading platform, UK political proceedings, US Wall Street

Summary: Global equity market is seeing mixed price action in the global market today. Lack of progress in Sino-U.S. trade talks, increasing awareness that trade deal between two parties is unlikely in the upcoming G20 summit and headlines on massive street protests act as factors which provide the market with bearish cues. This has resulted in investor sentiment remaining divided in the global market. Further, the reduction in 2019 global crude oil demand growth forecast by OPEC also hurt risk appetite. While trade tensions and crude oil woes influenced European market to open in red, the surge in telecom shares over Germany’s announcement of completing its 5G mobile spectrum auction helped market retain some level of positive activity in the market. However, fundamentals remain shaky at this point in time. Forex assets display a high level of bearish influence showing the impact of headlines on investor sentiment and risk appetite in Asian and European market so far today.

Precious Metals: Both gold and silver are trading positive in the global market today given divided investor sentiment and prevalent cautious tone over the trade war and crude oil woes. Reduction in crude oil demand growth forecast, news of the attack on gulf crude oil tankers also affected market price activity, favouring demand for safe-haven assets.

Crude Oil: The liquid gold declined to 5-month lows earlier today as news of OPEC’s reduction in crude oil demand growth forecast for the year ahead took the wind out of bulls. However, news of the attack on gulf tankers, crude oil shipments amid ongoing supply to demand scenario helped black gold regain positive price action in spot and futures markets.

AUD/USD: The pair fell sharply earlier in the day over disappointing Australian unemployment data resulting in bulls waging strong war for control of price action near the 0.69 handle. While the pair has managed to stabilize near the 0.69 handle in the late European session, dovish cues from China resulted in bulls losing the edge and pair trading with strong bearish bias in the global market.

On The Lookout: Geo-Political issues take the center stage of investors’ attention today. While Sino-U.S. trade war-related updates continue to garner more attention and have a high impact on the market, all eyes are now on UK political proceedings. Given the fact that China won’t budge regardless of USA’s threatening tactics, it has become increasingly clear to investors across the globe that this issue is going to go into the long term.

UK political proceedings

Meanwhile, the top 10 PM contenders in the UK for the role of PM are facing the first secret MP ballot today and any candidate failing to secure a minimum of 17 MP votes in their favor will be ousted from the race. The main point here is that, regardless of who succeeds, UK seems to be on a path for hard Brexit once the PM candidate is decided and the possibility of such an outcome is a cause of great concern in the global market. Aside from geopolitical events, traders await macro data updates for short term profit opportunities.

Trading Perspective: The directional bias for price action in US Wall Street seems to remain in favor of market bulls for now. US stock and benchmark index futures trading in the international market gained positive momentum over energy share led gains post sharp surge in crude oil price. While news of the attack on crude tankers in the Middle East managed to outweigh market bears for now and influence from fed rate cut expectations provide some level of fundamental support. But any provocative remarks or comments from President Trump could still push market fundamentals in favor of bears later today. However, a lack of any such comments would suggest that bulls will retain control over price action.

EUR/USD: The common currency has lost its upper hand against US Greenback despite the latter remaining weak on dovish fate rate decision expectations. As Sino-U.S. trade war woes hurt risk appetite in the market, lack of support from macro data updates amid mixed investor sentiment in the global market led to the pair trading in red while traders await US macro data for directional bias.

GBP/USD: The British Pound is facing sharp loss as the first round of vote on PM replacement decision in UK parliament takes place today. As traders await results of the first round of the election, increasing odds surrounding Brexit causes the pair to remain in bear’s territory. Traders now await UK headlines and US macro data updates for short term profit opportunities.

USD/CAD: The pair is trading in favor of Canadian Dollar as Crude oil price surged sharply in the global market. Price of crude oil went up by more than 4% despite OPEC’s reduction in demand growth forecast for the year ahead as supply woes increased on news of the attack on crude oil tankers in the Middle East. Further, weak USD on dovish fed rate decision bets also favor CAD bulls resulting in pair trading in red. Regardless of US trade data outcome later today, the pair is likely to trade in red across US market hours on positive crude oil price.

EURUSD breaks below 1.13, Bitcoin holds the 8,000 mark

June 13, 2019 by Nikolas Papas Leave a Comment Filed Under: Market News - European Open Tagged: Bitcoin, Blockchain, Brexit, China extradition bill, economy, Gulf of Oman, Italy budget, monetary policy, Sino-U.S. trade talks, trading platform, UK politics

Asian indices finished lower for the second day in a row as trade worries resurface and Hong Kong protests regarding the China extradition bill weighs on traders sentiment. The Nikkei225 finished 0.46 percent lower to 21,032; the Hang Seng benchmark in Hong Kong, finished 0.05 percent lower at 27,294. The Shanghai Composite finished 0.04 percent higher to 2,910, while in Singapore, the FTSE Straits Times index finished 0.05 percent lower to 3,207. Australian equities saw a brief spike following the release of the May jobs report but soon fell back into its old pattern. At the end of the day, the ASX200 finished 1.3 points or 0.02% lower at 6542.4.

European session started higher today despite renewed worries about trade relations between the US and China and a rise in geopolitical tensions. DAX30 is adding 0.64 percent to 12,193, CAC40 is 0.32 percent higher at 5,391 while the FTSE MIB in Milan is trading 0.84 percent higher at 20,634. The London Stock Exchange is 0.37 percent higher to 7,394 as the Brexit uncertainty continues.

In commodities markets, crude oil jumps higher at 52.3 after reports that two tankers have been attacked in the Gulf of Oman. Oil is down almost 18% from the high in late April, wiping out about half of its rally earlier this year due to increased global trade worries. Brent oil also trades higher to $61,71 per barrel as major oil producers have yet to agree on adjustments on output. Gold also trades higher to 1,337, following the recent developments in the Gulf of Oman. The precious metal broke above the 50 and 100-hour moving averages yesterday turning the short term technical picture to bullish. Gold will find support at the 1300 round figure and then at 1295, the 100-day moving average, while more bids will emerge at the 50-day moving average at 1287. On the upside, resistance stands at 1344 the high from the previous week.

BTCUSD Hourly (H1) Chart

In cryptocurrencies market, bitcoin (BTCUSD) managed to break above the key 8,000 mark, the daily low for BTC was at 8,048, and the daily high at 8,177. Immediate support for BTC stands now at $8,000 round figure while next support stands at 7411, the low from the recent trading range. On the upside, strong resistance now stands at 8,261, the high from yesterday while I expect extra pressure from sellers at 8,500 and then at 8,700. Ethereum (ETHUSD) adds twelve dollars to 258, with capitalization now to 27.5 billion. On the upside, the immediate resistance stands at 287, the recent high while the support stands at 200 round figure. Litecoin (LTCUSD) consolidate around yesterdays high at 136. The crypto market cap holds above $262.0B.

On the Lookout:

Australia’s unemployment rate remained steady at 5.2% in May, contradicting the market expectation of a drop to 5.1%. The Aussie economy added 42,300 jobs in May, beating both the analyst’s expectation of 17.5K and the previous month’s print of 28.4K by a big margin.

The Swiss central bank (SNB) decides on monetary policy today at 09.30.

Trading Perspective: In fx markets, USD trades lower at 96.44 on speculation over Fed rate cut, while the Aussie dollar trades lower to 0.696 as jobless rate remained steady at 5.2% in May. Kiwi also trades lower to 0.6566 level as New Zealand has cut its budget surplus forecast for 2019/20 to NZD1.3bn.

GBPUSD is trading lower today breaking below the 1.27 as the bearish momentum for Cable is still intact amid growing concerns over Brexit. The pair hit the daily low at 1.2661 and the daily high at 1.2700. Major support now stands at 1.26 recent low. On the upside, immediate resistance now stands at 1.2753, the high from yesterday. Pound shows persistent weakness amid UK political uncertainty and also on the back of global risk aversion. So any uptick can match excess offers.

In Sterling futures markets, the open interest increased by 2.2K contracts to their open interest positions on Wednesday, while volume increased by almost 81K contracts.

EURUSD started the day lower breaking below 1.13 and has trapped in 10 pips trading range. On the upside, the immediate resistance stands at 1.1340 the high from yesterday, while more offers will emerge at 1.1367, the 200-day moving average. Support stands at 1.1271, the 100-day moving average, while more bids will emerge at 1.12 round figure.

In euro futures markets, the open interest rose by more than 24K contracts on Wednesday, while volume posted the biggest up move since March 7, increasing by around 265.4K contracts.

EURUSD Daily Chart

USDJPY trades 0.07 percent lower to 108,44, today the pair hit the low at 108.15 and the high at 108.53. The pair will find support at 107.84 recent low. On the upside, immediate resistance for the pair now stands at 108.71, the high from yesterday. The USD price dynamics will continue to drive the pair’s momentum as traders focus shifts to FED next move.

In Yen futures markets, open interest shrunk by almost 3.3K contracts on Wednesday, while, volume rose for the second session in a row, this time by nearly 53.4K contracts.

USDCAD makes an attempt higher and trading as of writing at 1.3315 as the retreat in crude oil prices. Canada’s main export item seems to have added further weakness in the Canadian Dollar (CAD). The pair will find immediate support at the 200-day moving average around 1.3250 while extra support stands at 1.3200 round figure. On the upside, immediate resistance stands at the 1.33 zone before an attempt to 1.3348 where the 100-day moving average stands.

Aussie Slumps, Jobs Report Forecast Weak, Dollar Bounces Back

June 13, 2019 by Michael Moran Leave a Comment Filed Under: Market News, Market News - Asia Open Tagged: AUD/USD, Brexit, EUR-USD, Fintech, FOMC, Forex, FX, FX trading, GBP-USD, Sino-U.S. trade talks, trading, USD/JPY

Summary: The Dollar bounced back despite cooling US inflation as traders remained content to keep to well-worn ranges. Investors were left guessing on the trade front as President Trump said he was optimistic over making a deal with China but threatened to increase tariffs if no agreement is reached. The Dollar fell briefly following the release of a softer-than-expected US CPI report. May CPI rose 0.1% as forecast, but annual growth printed at 1.8%, below expectations of 1.9%. The Euro failed another topside attempt at 1.13434 before easing to 1.1290, retracing this week’s gains. Sterling slipped back to 1.2690 from 1.2725. USD/JPY was little changed at 108.50. The Australian Dollar slumped 0.48% to 0.6930 as the weakest currency. Traders are forecasting a weak employment gain and a fall in the unemployment rate in today’s Jobs report. The Dollar Index (USD/DXY), a mirror of the Euro, bounced back to 97.00 from 96.72 yesterday, up 0.33%. FX volatility remained subdued. Wall Street stocks were modestly lower. The DOW (26,005) and the S&P 500(2,882) both lost 0.2%. US bond yields fell back, the 10-year to 2.12% (2.14%). The 2-year US treasury note dropped 5 basis points to 1.88%.

Bloomberg US 2 Year Bond Yield Chart – 13 June 2018

EUR/USD – another failed attempt above 1.1340/50 saw the Single currency ease back to 1.1290. EUR/USD has traded between 1.1250 and 1.1350 this week and doesn’t look likely to break outside of it. Upcoming data releases from both sides of the continent today and tomorrow may do it.
AUD/USD – The combination of risk-off, lower oil prices and an overall stronger US Dollar saw the Aussie trade sharply lower to 0.6925 from 0.6965. Australia’s Employment report, which most expect to fall short of expectations could put further pressure on the Battler.
USD/JPY – The Dollar closed flat against the Yen at 108.50. The drop in the US 10-year yield to 2.12% from 2.14% limits the topside. Japanese importer buying support remains around the 108.20 area.

On the Lookout: Today’s data and event calendar springs to life, kicking off with Australia’s Employment Report. The economy is forecast to have created 17,500 jobs in May from 28,400 in April. The Unemployment rate is forecast to fall to 5.1% from 5.2%. While the labor market has been one of the bright spots for the Australian economy, the RBA made it clear that it would need to see big improvements or ease interest rates anew. Traders will also look at full-time and part-time employment. Chinese Foreign Direct Investment for May follows next. The Swiss National Bank rate policy meeting and announcement starts off the European day. Traders will be looking at the Eurozone’s Industrial Production report after falls in both Germany (sharp) and Italy.

Trading Perspective: FX markets will look to tomorrow’s US Retail Sales report to shake them off their complacency. Meantime bond markets continue to price in a Fed rate cut in July. US bond yields slipped back. The two-year yield fell back 5 basis points to 1.88%, just 5 basis points off its recent low (1.83%). A break of 1.8% could see late 2017 lows of 1.5%. Investors and traders alike never thought the Fed would cut rates in 2019. Bets are growing for at least 2 cuts this year.
Net speculative US Dollar longs remain at multi-year highs against the Major IMM currencies (EUR, JPY, GBP, AUD). Use opportunities of USD strength to sell into.

EUR/USD – The Euro fell back after failure to clear above 1.1350 and expectations of a weak Eurozone Industrial Production report today. EUR/USD traded to an overnight low of 1.12825. Immediate support lies at 1.1280 followed by 1.1250. A weak Eurozone Industrial Production report could see 1.1250 tested. Markets will also keep their eye on tomorrow’s US retail sales report. Immediate resistance can be found at 1.1310 and 1.1350. Look to trade a likely range today of 1.1275-1.1325. Prefer to buy dips.

Daily FX AUD USD Chart – 13 June 2019

AUD/USD – Slip sliding away, market sentiment remains bearish on the Aussie Battler. The Aussie traded to an overnight low at 0.69251 where immediate support lies. The next support level can be found at 0.6900 followed by 0.6880. Immediate resistance lies at 0.6960 and 0.7000. A weak Jobs number could see 0.6900 tested before buying support emerges. The risk may be for a good number, say a gain of over 30,000, which could see 0.7000. Look to trade a likely range of 0.6910-0.6990. Prefer to buy dips, the Aussie market is still short.
USD/JPY – The Dollar closed flat against the Yen at 108.50. USD/JPY has been trading between 108.10 and 108.80 for a week now. Immediate resistance can be found at 108.60 followed by 108.80. Immediate support lies at 108.20 (overnight low 108.216) and 108.00. The US 10-year yield fall to 2.12% will keep USD/JPY topside limited. Japan’s 10-year JGB yield was unchanged at -0.12%. Japanese corporations and importers continue to be the main support for USD/JPY between 108.00/20. Look to trade a likely range today of 108.10/60. Prefer to sell rallies.

Happy trading all.

Asian Equities Turn Red, Euro Picture Improves

June 12, 2019 by Nikolas Papas Leave a Comment Filed Under: Market News - European Open Tagged: Bitcoin, Blockchain, Brexit, Cryptocurrencies, ECB, FED, Fitch Ratings, monetary policy, Sino-U.S. trade talks, trade worries, trading platform

Asian indices finished lower today as trade worries resurface and Hong Kong protests regarding the China extradition bill, weighing on traders sentiment. The Nikkei225 finished 0.35 percent lower to 21,129 the Hang Seng benchmark in Hong Kong, finished 2.00 percent lower at 27,237. The Shanghai Composite finished 0.54 percent lower to 2,910, while in Singapore, the FTSE Straits Times index finished 0.36 percent lower to 3,198. Australian equities ended the day 2.6 points lower to 6543.7, ending its five-session winning streak. Despite the negative day, ASX still remains at the best levels since late 2007.

European session started lower today amid renewed worries about trade relations between the US and China. DAX30 is giving up 0.29 percent to 12,105, CAC40 is 0.43 percent lower at 5,385 while the FTSE MIB in Milan is trading 0.77 percent lower at 20,446. The London Stock Exchange is 0,35 percent lower to 7,4373 as the Brexit uncertainty continues.

XAUUSD Hourly (H1) Chart

In commodities markets, crude oil gives up over a dollar and trades at 52.32. Oil is down almost 18% from the high in late April, wiping out about half of its rally earlier this year, due to increased global trade worries. Brent oil also trades lower to $61,21 per barrel as major oil producers have yet to agree on adjustments on output. Gold trading is higher, adding over 10 dollars to 1,335, as sellers look exhausted below 1330. The precious metal broke above the 50 and 100-hour moving averages in the Asian session, turning the short term technical picture to bullish. Gold will find support at 1300 round figure and then at 1295 the 100-day moving average while more bids will emerge at 50-day moving average at 1287. On the upside, resistance stands at 1344, the high from the previous week.

In cryptocurrencies market, bitcoin (BTCUSD) continues the consolidation below the 8,000, mark, the daily low for BTC was at 7,808, and the daily high at 8,072. Immediate support for BTC stands now at $7,411 the low from the previous week, on the upside strong resistance now stands at 8,000 round figure. Ethereum (ETHUSD) trades flat to 246, with capitalization now to 26 billion. On the upside, the immediate resistance stands at 287, the recent high, while the support stands at 200 round figure, Litecoin (LTCUSD) is the outperformer today adding 10 dollars to 137. The crypto market cap holds above $254.0B.

On the Lookout: Australia’s Westpac-Melbourne Institute Index of Consumer Sentiment dipped 0.6% to 100.7 in June from 101.3 in May. China’s consumer price index (CPI) in May rose 2.7% from a year ago, the highest since February 2018. Meanwhile, the producer price inflation (PPI) rose 0.6% in May as expected by economists. Fitch credit rating affirms Hong Kong at ‘AA+’, outlook ‘Stable’.

Traders await the European Central Bank President Draghi scheduled to speak at 08:15GMT, and the US Consumer Price Index (CPI) data for the month of May scheduled at 12:30GMT, both events will affect the EURUSD price.

Trading Perspective: In fx markets, USD trades flat at 96.55 on speculation over Fed rate cut, while the Aussie dollar trades lower to 0.6950 despite positive news from Chinese CPI data. Kiwi also trades lower to 0.6582 level as New Zealand has cut its budget surplus forecast for 2019/20 to NZD1.3bn.

GBPUSD is trading marginally higher today trapped in the tight trading range at 1.2730 as the bearish momentum for Cable is still intact amid growing concerns over Brexit. The pair hit the daily low at 1.2712 and the daily high at 1.2732. Major support now stands at 1.26 recent low. On the upside, immediate resistance now stands at 1.2723, the high from yesterday. Pound shows persistent weakness amid UK political uncertainty and also on the back of global risk aversion, so any uptick can match excess offers.

In Sterling futures markets, the open interest shrunk by just 432 contracts on Tuesday, volume reversed two consecutive daily increases and dropped by around 32.8K contracts.

EURUSD started the day higher breaking above the yesterday high and is trading at 1.1335. On the upside, the immediate resistance stands at 1.1340 the high from Asian session, while more offers will emerge at 1.1367 the 200-day moving average. Support stands at 1.1273 the 100-day moving average, while more bids will emerge at 1.12 round figure. Euro gets a lift from rising speculations of a rate cut by the Fed at some point later in the year.

In euro futures markets, the open interest shrunk by nearly 2K contracts on Tuesday, volume increased by around 227K contracts, the largest single-day build since early March.

EURUSD Daily Chart

USDJPY trades 0.16 percent lower to 108,34, today the pair hit the low at 108.27 and the high at 108.55. The pair will find support at 107.84 recent low. On the upside, immediate resistance for the pair now stands at 108.71, the high from yesterday. The USD price dynamics will continue to drive the pair’s momentum as traders focus shifts to FED next move.

In Yen futures markets, open interest increased by around 5.9K contracts on Tuesday, volume followed suit, rising by around 5.8K contracts.

USDCAD makes an attempt higher and trading as of writing at 1.3286 as the retreat in crude oil prices, Canada’s main export item, seems to have added further weakness in the Canadian Dollar (CAD). The pair will find immediate support at the 200-day moving average around 1.3250 while extra support stands at 1.3200 round figure. On the upside, immediate resistance stands at the 1.33 zone before an attempt to 1.3348 where the 100-day moving average stands.

Trump Takes Aim at Euro Weakness, Fed Policy; Dollar Dips

June 12, 2019 by Michael Moran Leave a Comment Filed Under: Market News, Market News - Asia Open Tagged: AUD/USD, Bitcoin, Brexit, EUR-USD, Fintech, FX trading, GBP-USD, Sino-U.S. trade talks, USD/JPY

Summary: President Donald Trump took aim at the Euro, accusing Europe of devaluing the single currency to the disadvantage of the US Dollar. In several tweets, Trump also criticised the US Federal Reserve’s monetary policy, with “The Fed Interest rate way too high”. The Euro rallied 0.10% to 1.1327 (1.1310) while the Dollar Index (USD/DXY), a mirror of the Euro, edged down to 96.72 (96.79). Sterling climbed back to 1.2724 from 1.2687, up 0.3% after British wages rose in April, beating forecasts. Wage growth is exceeding inflation which could force the Bank of England to raise interest rates. The Australian Dollar steadied to 0.6962 (0.6959) while the Dollar eased against the Yen to 108.50 from 108.60. Emerging Market currencies rallied against the Greenback.

Forex Factory UK Wages Chart – 12 June 2019

Wall Street stocks ended their winning streak, settling lower. The DOW lost 0.11% to 26,058.00.
Bond yields steadied with the US 10-year at 2.14% (2.15%). Ten-year UK Gilts rose 2 basis points.
The Eurozone’s Sentix Investor Confidence Index dropped to -3.3 against a forecast of 2.3. UK Average Earnings (Wages) rose to 3.1%, beating forecasts of 2.9%. US Producer Prices matched forecasts. The US TIPP Economic Optimism Index slumped to 53.2 from 58.6 and a forecast of 59.2.

EUR/USD – The Single currency rallied off 1.1300 to end 0.1% higher at 1.1327. Ahead of this month’s G20 Conference in Osaka (18-29), US President Trump took aim at the Euro, tweeting that “the Euro and other currencies are devalued against the Dollar”.
USD/JPY – The Dollar slipped back against the Yen after rallying yesterday to 108.800 (overnight high), settling at 108.50 in New York. The US 10-year yield eased to 2.14% from 2.15%.
AUD/USD – The Australian Battler steadied at 0.6962 (0.6958) on the back of the broad-based US Dollar weakness. The Aussie faces a test tomorrow with the release of Australia’s Employment report.
GBP/USD – Sterling rallied to 1.2824 (1.2687) after a strong rise in British wages which beat forecasts and exceeds inflation could see the Bank of England raise interest rates. Boris Johnson launched his leadership bid, promising Conservatives “no more delays”.

On the Lookout: Market focus on the US-China trade war continues. Risk sentiment improved after Mexico and the US reached a deal and President Trump avoided tariffs yesterday. Ongoing tension with China continues to weigh on risk sentiment. Trump’s recent tweets taking aim at the Euro weakness and criticizing the Fed for its monetary policy may start to impact the Dollar more soon. US economic fundamentals, unlike in the past, have begun to weaken which means his pronouncements on the value of the currency will carry more weight in the markets.
Today’s data highlight is the US Inflation report (Headline and Core CPI), which is closely monitored by the Fed. Prior to that, Asia starts off with Australia’s Westpac Consumer Sentiment Index followed by Japanese Core Machinery Orders and Producer Prices. China reports its annualised CPI and PPI. Australia’s RBA Vice-Governor Christopher Kent (Finance) delivers a speech at the Australian Renmembi forum in Melbourne. ECB President Mario Draghi will deliver the opening remarks at the ECB Conference on central, eastern and south eastern Europe in Frankfurt.

Trading Perspective: The Dollar is poised to head lower if US inflation and retail sales reports show that the US economy is weakening. After Friday’s US job growth was significantly lower than expect, interest rate markets are now pricing in a September Fed rate cut chance at 94%. While US 10-year bond yields have stabilised, weaker inflation and retail sales reports will see the benchmark race toward 2.0% and lower.
Lastly current net long US Dollar market positioning, although trimmed, is still excessive. A significant correction has yet to be seen.

DAILYFX Hourly GBP USD Chart – 12 June 2019

EUR/USD – The Euro steadied to finish above 1.1300 to 1.1327 currently. Overnight high for the Single currency was 1.13375. Immediate resistance lies at 1.1340/50. A sustained break higher will see 1.1400 and beyond. Immediate support can be found at 1.1300 and 1.1280. Despite the big drop in Eurozone Sentix Investor Confidence Index, the tweet from President Trump on the Euro as he mulls tariffs on Europe, will weigh on the Single currency. Market positioning is currently short Euro bets near multi-year highs. Look to buy Euro dips with a likely range today of 1.1310-1.1360.
USD/JPY – the Dollar steadied against the Yen yesterday to 108.50 after its post-US Payrolls slump to 107.88. Risk sentiment improved and the US 10-year yield jumped back to 2.15%. Overnight, the Dollar slipped back to 108.50 from a high of 108.80. USD/JPY has immediate resistance at 108.80 and 109.00. Immediate support can be found at 108.30 (overnight low 108.35) and 108.00. Look for a likely range today of 108.20-108.70. Prefer to sell rallies.
AUD/USD – The Australian Dollar settled at 0.6962 after falling to 0.6947 overnight. Markets will eye Chinese Inflation data as well as the RBA’s Christopher Kent’s speech in Melbourne. The Aussie has immediate support at 0.6940 followed by 0.6920. Immediate resistance can be found at 0.7000 and 0.7030. With market positioning short of Aussie Dollar bets prefer to buy dips with a likely range today of 0.6955-0.7005.
GBP/USD – Sterling steadied back above 1.2700 to close at 1.2725, buoyed by the rise in UK Wages and the possibility of a BOE rate hike. The latest Commitment of Traders/CFTC report (week ended 04 June) saw speculative GBP shorts increase to -GBP 44,400 contracts from the previous week’s -GBP 32,000. Speculators are getting bolder carrying shorts in a currency that could turn either way given the uncertainty of Brexit, US-China trade war, and a weakening US economy. GBP/USD has immediate resistance at 1.2740 (overnight high 1.27325). The next resistance level is at 1.2780. Immediate support lies at 1.2685 followed by 1.2650. Look to buy dips with a likely range of 1.2690-1.2790.

Happy trading all.

Equities Positive on Chinese Cue, Post Holiday Activity Underpins Market Bulls

June 12, 2019 by Karthik Subramanian Leave a Comment Filed Under: Market News - US Open Tagged: AUD/USD, bond yield, Chinese stimulus, EUR-USD, GBP-USD, Market Bulls, Precious Metals, USD/CAD

Chinese policy easing cues, healthy risk appetite in the market underpin market bulls supporting positive price action. Traders now await US inflation data for short term directional cues.

Summary: Global market is continuing its positive price activity for second consecutive session this week while geo-political issues simmer in the background. Asian markets gained positive momentum on headlines from China hinting at easing financial rules and policy tweaks. Further, lingering influence from US decision to hold off on import tariff for Mexican goods also provided positive cues. Healthy risk appetite, positive cues from US and Asian markets, Chinese policy tweak updates helped European equities open positive and trade with bullish bias today. On Forex front, mounting bets surrounding possibility of rate cut by US Federal Reserve continues to cap USD ahead of upcoming G20 meeting which will see China and US presidents meet face to face since their last meeting in December 2018. Weak USD and healthy risk appetite underpin market bulls supporting positive price action in forex market.

Precious Metals: Precious metals exhibit mixed price activity in the global market today. Despite weak USD in the broad market, prevalent risk appetite in the market has capped demand for yellow metal resulting in gold spot and future price trading in red with post prices hitting new weekly lows near $1320 level, while cheaper rates surrounding silver has helped the metal retain positive price action.

Crude Oil: Chinese policy stimulus and healthy risk appetite hint at strong demand for crude oil helping liquid gold trade positive in the market. While Sino-U.S. trade war continues to weigh down crude oil to some extent, OPEC’s decision to extend production and supply cut enforcement and efforts to get non-OPEC members such as Russia to comply with its decision also provides crude bulls with positive support.

AUD/USD: The pair is trading range bound today and lacks a clear directional bias. AUD bulls failed to gain momentum despite strong business confidence report and positive cues from china. Meanwhile weak USD in the broad market remains the driving force behind the pair’s momentum today. The remains struck near mid-0.69 handle and needs to make a clear breakout above 0.70 for bulls to gain price momentum.

On The Lookout: Investors focus for the day remains on US inflation data scheduled to release later today. The week ahead lacks major events on geo-political scale which could affect the overall price momentum of the pair significantly. Chinese stimulus in form of policy easing may have provided positive influence in short term but lacks impact to provide a long term solid bullish fundamentals for the market bulls. Tension surrounding Brexit uncertainties, race for power in UK’s political world continues to heat up with Tory leadership announcing names of top 10 contenders. Also, Trump’s trade war with Europe and China still remains unresolved keeping bears fundamentally supported and ready to pounce on opportunity as investor caution still remains active to some extent in the global market.

Trading Perspective: Positive headlines and macro data influenced momentum are the main driving force behind overall market momentum today. Chinese stimulus and positive investor sentiment in the global market helped US index and stock futures trading in the international market retain its positive momentum from last night and given price action in Asia and Europe, there is strong possibility for Wall Street to trade in green as well unless a major headlines or update from US disrupts overall momentum.

EUR/USD: The pair is trading positive with signs of strong bullish bias having managed to breach above resistance level of 1.1300 and gaining strong support near 1.1302/05 handle. US-DE bond yield spread difference dropped to 18 month lows earlier in the day which added strength to EURO bulls in the market. Traders now await US inflation data update for short term profit opportunities.

GBP/USD: The pair is trading positive in the global market as weak USD overshadowed bearish influence surrounding GBP acting as main driving force behind today’s momentum. Upbeat UK average earnings data which showed growth strengthened GBP bulls while raising fears of no-Brexit deal given top 10 contender list for PM and other disappointing UK data updates capped gains. Traders now await US inflation data update for short term profit opportunities.

USD/CAD: The pair is trading positive but gains are capped owing to weak USD in the broad market. Positive crude oil price and healthy risk appetite among investors provided some support for CAD bulls. But USD managed to retain hold near price levels gained from overnight rebound activity despite remaining near multi month lows. Traders now await US inflation data update for short term profit opportunities.

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Gold Shines, Breaks above 1,354

Dollar Steadies Despite Lower US Yields, Retail Sales Next

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EURUSD breaks below 1.13, Bitcoin holds the 8,000 mark

Aussie Slumps, Jobs Report Forecast Weak, Dollar Bounces Back

Asian Equities Turn Red, Euro Picture Improves

Trump Takes Aim at Euro Weakness, Fed Policy; Dollar Dips

Equities Positive on Chinese Cue, Post Holiday Activity Underpins Market Bulls

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