Nikkei Slumps, Gold Regains the 1,500 mark

Nikkei 225 slumps and its benchmark in Tokyo is trading 2.01% lower at 21,340 after President Trump announced the United States will impose tariffs on $7.5 billion of goods from the EU. Traders increased their bets that the Fed will slash interest rates at its next meeting on October to protect the economy from slowing growth abroad and the effects of the trade war. The Hang Seng index is trading 0.52% lower at 25,906. The ASX 200 in Australia has had its worst day in seven weeks, trading 2.09% lower at 6,501.

European indices started lower the day, CAC40 is 0.75 per cent higher at 5,463 while the FTSE MIB in Milan is 0.95 per cent higher at 21,718. In London, FTSE 100 is trading 0.45% lower at 7,090. The UK is scheduled to leave the EU on October 31.

nikkei 225 slumps
XAUUSD Daily Chart

In commodities markets, crude oil trades 0.23 per cent higher at $52.76 as global growth worries weigh on crude. Brent oil is trading 0.09% lower at $57,64 per barrel as oil world supply will be affected by the global slowdown. Gold trades higher at 1,498, as the momentum turns neutral after the price trades around the 50-day moving average. On the upside, strong resistance will be met at 1,555.13 recent high while support is at 1,458 the recent low.       

In cryptocurrencies, Bitcoin (BTCUSD) momentum is neutral now as BTC trades higher at 8,300, hitting the daily low at 8,137 and the daily high at 8,408. Bitcoin short term momentum is neutral now as it trades at the 50 and 100-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, strong resistance now stands at 8,412 high and then at 9,000 round figure. Ethereum (ETHUSD) trades higher at 177,83 with capitalisation now to 19.36 billion, and 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 55.53. The crypto market cap capitalization now stands above $221.82 billion.

On the Lookout: During Asian trading session the Australia Commonwealth Bank Services PMI came in at 52.4 below expectations of 52.5 in September. 

New Zealand ANZ Commodity Price came in at 0%, below expectations of 0.4% in September. 

Trading Perspective: In forex markets, USD index trades 0.07 per cent higher at 99.08, the Aussie dollar trades 0.12 per cent higher at 0.6713, while Kiwi trades 0.04% higher at 0.6270.

GBPUSD trades 0.10% higher at 1.2306 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 1.2447 the 100-day moving average while more offers will emerge at 1.2729 the 200-day moving average.

In Pound futures markets open interest increased by 965 contracts, volume decreased by around 47.400 futures contracts.

EURUSD trades 0.03% lower at 1.0955, as the pair trapped in the descending channel that might drive the price lower. Immediate resistance for the pair stands at 1.1067 the 50-day moving average and then at 1.1154 the 100-day moving average. On the downside, immediate support stands at 1.0940 today’s low and then at 1.0835 the low from 2017.

In euro futures markets open interest increased by 1.300 contracts, volume decreased by around 55.000 futures contracts.

USDJPY is trading 0.05% higher at 107.22 having hit the daily low at 106.95 and the daily high at 107.29. USDJPY pair will find support at 104.44 the low from August 23rd. On the upside, immediate resistance for the pair now stands at 108.46 the high from September 19th, and then at 109.16 the 200-day moving average. 

In Yen futures markets open interest decreased by 5,800 contracts, volume decreased by around 10,400 futures contracts.

nikkei 225
USDJPY Daily Chart

USDCAD is trading 0.02% lower at 1.3320 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.