Asian Indices ended higher today as investors turn cautious amid a new Brexit deal delay and positive Brexit developments.
Meanwhile, for one more week, the focus will be on the US and China’s partial trade deal. Chinese Government wants to proceed with further discussions before signing the phase one trade deal.
Last week, Fed Chair Jerome Powell signalled further interest rate cuts and the resumption of bond purchases. Investors increased their bets that the FOMC will cut interest rates at its next meeting on October to protect the economy from slowing growth and the effects of the trade tensions. The Hang Seng index is trading 0.09% higher at 26,742. The Shanghai Composite is 0.05% higher at 2,939, while in Singapore, the FTSE Straits Times is 0.95% higher at 3,143. The ASX 200 in Australia ended flat at 6,652.
European indices started higher the day, DAX trading 0.41 higher at 12,688, CAC40 is 0.08 per cent lower at 5,640 while the FTSE MIB in Milan is 0.43 per cent higher at 22,416. In London, FTSE 100 is trading 0.47% higher at 7,184. The UK is scheduled to leave the EU on October 31.
In commodities markets, WTI crude oil trades 0.39 per cent lower at $53.66 as global growth worries weigh on crude. Brent oil is trading 0.77% lower at $58,96 per barrel as oil world supply will be affected by the global slowdown. Gold trades lower at 1,491, as the short term momentum turns bearish after the price trades below the 50-day moving average. On the upside, strong resistance will be met at 1,555.13 yearly high while support is at 1,458 the recent low.
In cryptocurrencies, Bitcoin (BTCUSD) momentum is neutral as Bitcoin trades higher at 8,204, hitting the daily low at 8,176 and the daily high at 8,262. Bitcoin short term momentum is neutral now as it trades above the 200-day moving average ut below the 50-day moving average. Immediate support for BTC stands now at $7,686 recent low, while next support stands at 7,406 the low from June 2nd. On the upside, resistance now stands at 8,801 recent high and then at 9,000 round figure. Ethereum (ETHUSD) trades higher at 173,15 with capitalisation now to 18.92 billion, on the upside, the immediate resistance stands at 317 high while the support stands at 136 the low from May 6th, Litecoin (LTCUSD) trades flat at 53.66. The crypto market cap capitalization now stands above $222.54 billion.
On the Lookout: Germany Producer Price Index (YoY) came in at -0.1% above forecasts of -0.3% in September. Germany Producer Price Index (MoM) came in at 0.1% above expectations of -0.1% in September.
Japan All Industry Activity Index (MoM) came in at 0% topping expectations of -0.1% in August.
The central bank of China set the Yuan rate (USDCNH) at 7.0680 versus yesterday settlement at 7.0769.
Trading Perspective: In forex markets, USD index trades 0.08 per cent higher at 97.22, the Aussie dollar trades 0.31 per cent higher at 0.6878, while NZDUSD trades 0.42% higher at 0.6410.
GBPUSD trades 0.10% lower at 1.2987 as we are getting closer to the Brexit deadline. Major support now stands at 1.2078 recent low which if broken, might accelerate the slide further towards 1.20. On the upside, immediate resistance now stands at 1.3010 recent high while more offers will emerge at 1.3050 round figure.
In Sterling futures markets open interest decreased by 2,800 contracts, volume decreased by around 123.000 futures contracts.
EURUSD trades 0.04% lower at 1.1165 as the pair momentum now turns bullish. Immediate resistance for the pair stands at 1.1179 the daily high. On the downside, immediate support stands at 1.1149 today’s low and then at 1.1003 the previous week low.
In euro futures markets open interest increased by 890 contracts, the volume also decreased by around 92.000 futures contracts.
USDJPY is trading 0.17% higher at 108.56 having hit the daily low at 108.28 and the daily high at 108.65. USDJPY pair will find support at 104.44 the low from August 23rd. On the upside, immediate resistance for the pair now stands at 108.93 yesterday’s high, and then at 109.06 the 200-day moving average.
In Yen futures markets open interest decreased by 2.200 contracts, volume decreased by around 30,600 futures contracts.
USDCAD is trading 0.13% lower at 1.3105 the pair will find immediate support at 1.3017 the YTD low while extra support stands at 1.30 round figure. On the upside, immediate resistance now stands at the 1.3356 high from September 3rd before an attempt to 1.3450 high from 31st May.