Indices and Nikkei 225 benchmark in Tokyo ended higher today on trade talks optimism as trades talks resumed in Washington on positive tones. Fed Chair Jerome Powell signalled further interest rate cuts and the resumption of bond purchases. US-China relations are set to be the key driver of sentiment over the coming days. Traders increased their bets the Fed will slash interest rates at its next meeting on October to protect the economy from slowing growth and the effects of the trade tensions.
The Nikkei is trading 1.15% higher at 21,798, the Hang Seng index is trading 2.34% higher at 26,312. The Shanghai Composite is 0.88% higher at 2,974, while in Singapore, the FTSE Straits Times is 0.69% higher at 3,110. The ASX 200 in Australia ended 0.91% higher at 6,606.
European indices started higher the day. DAX trading 1.0 higher at 12,9, CAC40 is 0.31 per cent higher at 5,586 while the FTSE MIB in Milan is 0.38 per cent higher at 21,833. In London, FTSE 100 is trading 0.51% lower at 7,19. The UK is scheduled to leave the EU on October 31.
In commodities markets, crude oil trades 1.92 per cent higher at $55.58 as global growth worries weigh on crude. Brent oil is trading 2.05% higher at $60,31 per barrel as the world’s oil supply will be affected by the global slowdown. Gold trades lower at 1,499, as the momentum turns neutral after the price trades below 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 bullish now as BTC trades lower at 8,406, hitting the daily low at 8,341 and the daily high at 8,801. Bitcoin short term momentum is bullish now as it trades above the 200-day moving average. Immediate support for BTC stands now at $7,686 recent low, while the next support stands at 7,406 the low from June 2nd. On the upside, strong resistance now stands at 8,801 daily high and then at 9,000 round figure. Ethereum (ETHUSD) trades lower at 185,08 with capitalisation now to 19.67 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 lower at 55.96. The crypto market cap capitalization now stands above $225.93 billion.
On the Lookout: Moody’s Investors Service expects India’s gross domestic product growth to drop to 5.8% in the fiscal year ending in March 2020 from 6.8% in fiscal 2018.
The central bank of China set the Yuan rate (USDCNY) at 7.0727 versus yesterday’s settlement at 7.0730.
Trading Perspective: In forex markets, USD index trades 0.05 per cent lower at 98.64, the Aussie dollar trades 0.34 per cent higher at 0.6783, while Kiwi trades 0.13% higher at 0.6327.
GBPUSD trades 0.19% higher at 1.2456 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 1.2466 the daily high while more offers will emerge at 1.2711 the 200-day moving average.
In Pound futures markets open interest decreased by 640 contracts, volume increased by around 112.000 futures contracts.
EURUSD trades 0.05% higher at 1.1010, as the pair trades for the second day out of the descending channel. Immediate resistance for the pair stands at 1.1047 the 50-day moving average and then at 1.1141 the 100-day moving average. On the downside, immediate support stands at 1.1003 today’s low and then at 1.0835 the low from 2017.
In euro futures markets open interest increased by 5.400 contracts, volume increased by around 84.000 futures contracts.
USDJPY is trading 0.05% higher at 107.99 having hit the daily low at 107.84 and the daily high at 108.12. 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 109.06 the 200-day moving average.
In Yen futures markets open interest increased by 3.100 contracts, volume increased by around 60,00 futures contracts.
USDCAD is trading 0.08% lower at 1.3275 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.