07 Dec 2018

FOREX Newsletter

FOREX Newsletter

December 07, 2018

 

Pulse of the Market

·      The U.S Dollar weakened against major peers yesterday as U.S Treasury yields tumbled

·      Market sentiment was dampened by disappointing ADP payrolls data and higher jobless claims

·      Bank of Canada Governor Stephen Poloz said the economy was weaker than forecast

·      The Australian Dollar slipped for a third straight day on fears of renewed US-China trade tensions

The U.S Dollar was lower yesterday as the arrest of a Huawei executive spooked investors and disappointing jobs data dampened sentiment. The U.S Dollar index, which measures the greenback’s strength against a basket of six major currencies, fell 0.46% to 96.56. Meng Wanzhou, the chief financial officer at the Chinese smartphone company Huawei was arrested in Canada on an extradition request by the U.S, which had been investigating whether or not she violated sanctions against Iran. The arrest happened just one week after President Donald Trump and his Chinese counterpart Xi Jinping agreed to a 90-day trade truce. Investors fear it could derail any potential trade talks between the two countries. Japanese Yen gained after the news as the Yen tends to benefit during geopolitical or financial stress as Japan is the world’s biggest creditor nation and there is an assumption that Japanese investors will repatriate funds should a crisis materialize. Market sentiment was also dampened by disappointing ADP payrolls data and higher than expected jobless claims. Data showed private employers hired fewer workers than expected in November, pointing to a moderation in the pace of job growth. The U.S trade deficit jumped to a 10-year high in October as soybean exports dropped further and imports of consumer goods rose to a record high, suggesting the Trump administration’s tariff-related measures to shrink the trade gap likely have been ineffective. Sterling was 0.42 percent higher on the day even as worry over how a British Parliament vote on Prime Minister Theresa May’s Brexit deal next week remained in focus. The Canadian dollar fell against its U.S counterpart to a nearly 18-month low, as Bank of Canada Governor Stephen Poloz said the economy was weaker than forecast and predicted low oil prices would cut growth. Poloz, speaking a day after the central bank kept interest rates on hold, repeated that more tightening would be needed.

 

Time(GMT)   Economic Release IMP Actual Forecast Prior
00:00 Japan Labor Cash Earnings (YoY) (OCT) Medium   1.0% 1.1%
05:00 Japan Leading Index CI (OCT) Medium   104.9 104.3
07:00 German Industrial Production n.s.a. and w.d.a. (YoY) (OCT) Medium   2.1% 0.8%
09:30 U.K BoE/TNS Inflation Next 12 Mths (NOV) High     3.0%
10:00 Euro-Zone Government Expenditure (QoQ) (3Q) Medium   0.3% 0.4%
10:00 Euro-Zone Gross Domestic Product s.a. (YoY) (3Q) Medium   1.7% 1.7%
13:30 Canada Unemployment Rate (NOV) High   5.8% 5.8%
13:30 Canada Net Change in Employment (NOV) High   10.0k 11.2k
13:30 U.S Change in Non-farm Payrolls (NOV) High   198k 250k
13:30 U.S Change in Private Payrolls (NOV) Medium   200k 246k
13:30 U.S Unemployment Rate (NOV) High   3.7% 3.7%
13:30 U.S Average Hourly Earnings (YoY) (NOV) Medium   3.1% 3.1%
15:00 U.S U. of Mich. Sentiment (DEC) High   97 97.5
18:00 Baker Hughes U.S Rig Count (DEC 7) Medium     1076
20:00 U.S Consumer Credit (OCT) Medium   $15.000b $10.923b

Euro

The single currency gained yesterday against the U.S Dollar as the European Commission has adopted a recommendation to promote the wider use of the euro in international energy agreements and transactions. The aim is to strengthen the role of the single currency on the international financial system. Overall, the EUR/USD traded with a low of 1.1319 and a high of 1.1411 before closing the day around 1.1376 in the New York session.

 

Yen

The Japanese Yen pair weakened yesterday as U.S Treasury yields tumbled and traders scaled back expectations on the number of rate hikes the Federal Reserve would implement amid weakening economic data and heightened market volatility. The benchmark 10-year Treasury yield hit a three-month trough of 2.845 percent. Overall, the USD/JPY traded with a low of 112.21 and a high of 113.18 before closing the day around 112.65 in the U.S session.

 

British Pound

The British Pound posted gains in yesterday’s session. There were no major indicators in the U.K. In the U.S, job employment numbers were soft. ADP nonfarm payrolls plunged to 179 thousand, well off the estimate of 196 thousand. This was the lowest level since May. Unemployment claims edged lower to 231 thousand. Overall, the GBP/USD traded with a low of 1.2697 and a high of 1.2808 before closing the day at 1.2780 in the New York session.

 

Canadian Dollar

The Canadian Dollar fell against its U.S counterpart yesterday to a nearly 18-month low, as Bank of Canada Governor Stephen Poloz said the economy was weaker than forecast and predicted low oil prices would cut growth. Poloz’s comments were likely to reinforce market expectations that the pace of future rate hikes will ease off.  Overall, USD/CAD traded with a low of 1.3352 and a high of 1.3442 before closing the day at 1.3380 in the New York session.

 

Australian Dollar

The Australian Dollar slipped for a third straight session as fears of renewed US-China trade tensions spooked stock markets, while investors toyed with the idea of possible rate cuts at home. Australian two-year bond yields dived to their lowest in nine months at 1.93 per cent. Yesterday’s helping of domestic data did nothing to alter the mood Overall, AUD/USD traded with a low of 0.7189 and a high of 0.7272 before closing the day at 0.7221 in the New York session.

Euro-Yen

EUR/JPY is trading below 14, 50 and 100 days moving average. Fast stochastic is giving a bearish tone and MACD is issuing a bullish stance. The Relative Strength Index is above 45 and lies below the neutral zone. In general, the pair has lost 0.19%.

 

Sterling-Yen

Currently, GBP/JPY is trading below 14, 50 and 100 days moving average. Fast stochastic is issuing a bearish tone and MACD is also indicating a bearish stance. The Relative Strength Index is above 41 reading and lies below the neutral zone. On the whole, the pair has lost 0.06%.

 

Aussie-Yen

Currently, the cross is trading above 14, 50 and 100 days moving average. Fast stochastic is giving a bearish tone and MACD is indicating a bullish stance. The Relative Strength Index is above 44 reading and lies below the neutral region. In general, the pair has lost 0.91%.

  

Euro-Sterling

This cross is currently trading above 14, 50 and below 100 days moving average. Fast stochastic is indicating a bearish tone and MACD is issuing a bullish signal. The Relative Strength Index is above 57 and lies above the neutral region. On the whole, the pair has lost 0.13%.

 

Sterling-Swiss

This cross is trading below 14, 50 and 100 days moving average. Fast stochastic is issuing a bearish stance and MACD is also indicating a bearish tone. The Relative Strength Index is above 38 and lies below the neutral region. In general, the pair has lost 0.10%.

 

Appendix

  

FOREX Closing Prices for December 06, 2018
Currency Open High Low Close Net Chg
EUR/USD 1.13428 1.14112 1.13196 1.13761 0.0033
USD/JPY 113.183 113.189 112.213 112.655 -0.5200
GBP/USD 1.27316 1.28084 1.26977 1.27802 0.0049
USD/CHF 0.99751 0.99882 0.98927 0.99262 -0.0049
USD/CAD 1.33545 1.34423 1.3352 1.33802 0.0028
EUR/JPY 128.386 128.422 127.649 128.15 -0.2430
GBP/JPY 144.126 144.144 143.225 144.022 -0.0870
CHF/JPY 113.434 113.481 112.872 113.457 0.0350
AUD/JPY 82.24 82.285 80.899 81.492 -0.7490
EUR/GBP 0.89069 0.89259 0.88849 0.88958 -0.0012
EUR/CHF 1.13147 1.13199 1.12786 1.12929 -0.0023
GBP/CHF 1.27011 1.2718 1.26481 1.2689 -0.0013

 

 

 

Daily Pivot Points
  Trading Range  
Contract S3 S2 S1 Pivot R1 R2 R3
EUR/USD 1.1235 1.1277 1.1327 1.1369 1.1418 1.1461 1.1510
USD/JPY 111.21 111.71 112.18 112.69 113.16 113.66 114.13
GBP/USD 1.2605 1.2651 1.2716 1.2762 1.2827 1.2873 1.2937
USD/CHF 0.9788 0.9840 0.9883 0.9936 0.9979 1.0031 1.0074
USD/CAD 1.3250 1.3301 1.3341 1.3392 1.3431 1.3482 1.3521
EUR/JPY 126.95 127.30 127.73 128.07 128.50 128.85 129.27
GBP/JPY 142.53 142.88 143.45 143.80 144.37 144.72 145.29
CHF/JPY 112.45 112.66 113.06 113.27 113.67 113.88 114.28
AUD/JPY 79.45 80.17 80.83 81.56 82.22 82.94 83.60
EUR/GBP 0.8838 0.8861 0.8879 0.8902 0.8920 0.8943 0.8961
EUR/CHF 1.1233 1.1256 1.1274 1.1297 1.1316 1.1338 1.1357
GBP/CHF 1.2582 1.2615 1.2652 1.2685 1.2722 1.2755 1.2792

 

 

Sources:  News, Charts & Quotes (Courtesy: Reuters, US Department Of Treasury)

 

 

Disclaimer

This information has been prepared for information only and does not constitute an offer or commitment. This information does not constitute investment advice as defined by the rules of the FCA.

The firm or its staff members may trade on their own account and may from time to time hold or act as market makers in investments mentioned in this document. Please note that the firm makes no warranty, expressed or implied, as to the accuracy or completeness of the information and opinions herein. All parties are advised to seek independent professional advice as to the suitability of any products and to their tax, accounting, legal or regulatory implications. City Credit Capital (UK) Ltd is authorized and regulated by the Financial Conduct Authority, reg 232015.

 

 

07 Dec 2018

Daily Market View

Daily Market View

Friday, December 07, 2018
          U.S Stock Market

 

DJIA S & P 500 NASDAQ
24907 2691.50 6825.75
-1.57% -1.41% -0.61%

A rout on Wall Street deepened yesterday after news of the arrest of a top executive at Chinese telecommunications giant Huawei stoked fears it could hinder progress in U.S.-China trade talks. The Dow dropped more than 600 points, or 2.4 percent, in early trading. The decline represents a continuation of Tuesday’s 800-point plunge in the blue-chip index before trading was closed Wednesday in observance of a national day of mourning for former President George H.W. Bush. Other indices also lost ground yesterday. The S&P 500 index fell more than 1 percent, while the tech-heavy NASDAQ index slipped 0.8 percent. The news of Huawei CFO Meng Wanzhou’s arrest sent shares sharply lower on fears of rising tensions between China and the U.S. The incident heightens concerns that the trade truce between President Donald Trump and his Chinese counterpart Xi Jinping won’t hold, pushing the two economic powers into a trade war. Meanwhile, oil prices dropped as OPEC countries gathered yesterday for a two-day meeting.

 

 

Major Economic Releases for Today
Period Event GMT Forecast Previous

nov

BoE/TNS Inflation Next 12 Mths 09:30   3.0%

3Q

Euro-Zone Gross Domestic Product s.a. (YoY) 10:00 1.7% 1.7%

nov

Canada Unemployment Rate 13:30 5.8% 5.8%

nov

Canada Net Change in Employment 13:30 10.0k 11.2k

nov

U.S Change in Non-farm Payrolls 13:30 198k 250k

nov

U.S Unemployment Rate 13:30 3.7% 3.7%

nov

U.S Average Hourly Earnings (YoY) 13:30 3.1% 3.1%

dec

U.S U. of Mich. Sentiment 15:00 97 97.5

oct

U.S Consumer Credit 20:00 $15.000b $10.923b
Dow Jones Industrial Average

The Dow Jones Industrial Average declined 0.32%. The best performers of the session on the Dow Jones Industrial Average were Cisco Systems Inc., which rose 2.20% or 1.04 points to trade at 48.39 at the close. Meanwhile, International Business Machines added 1.90% or 2.31 points to end at 123.91 and Visa Inc. was up 1.74% or 2.41 points to 141.05 in late trade. The worst performers of the session were Boeing Co, which fell 3.09% or 10.60 points to trade at 331.90 at the close. JPMorgan Chase & Co declined 1.90% or 2.04 points to end at 105.19 and Exxon Mobil Corp was down 1.31% or 1.04 points to 78.39.

NASDAQ 100

The NASDAQ index gained 0.42%. The top performers on the NASDAQ were TheStreet Inc. which rose 35.53% to 2.060, Uxin Ltd which was up 31.47% to settle at 3.76 and Remark Holdings Inc. which gained 31.39% to close at 1.800. The worst performers were Conatus Pharmaceuticals Inc. which was down 56.89% to 1.940 in late trade, Tonix Pharmaceuticals Holding Corp which lost 25.36% to settle at 3.150 and Hexindai Inc. which was down 25.33% to 2.24 at the close.

Oil

Oil prices tumbled about 3 percent yesterday as OPEC reportedly agreed to cut production, but ended its closely-watched meeting without a decision on how much crude the cartel will take off the market. OPEC agreed in principle to cut production during a meeting at its headquarters in Vienna, Austria yesterday, two sources told Reuters. However, the cartel delayed a decision on specific quotas until it consults Russia today. OPEC began capping supply in partnership with Russia and several other nations last year in order to end a punishing downturn in oil prices. However, Moscow has not yet specified how much it will cut production during the fresh round of supply caps that is now under consideration. U.S crude oil ended yesterday’s session down $1.40, or 2.7 percent, at $51.49, bouncing from a session low of $50.08. Oil prices briefly pared losses after government data showed U.S crude stockpiles fell by 7.3 million barrels in the week through Nov. 30. Oil prices have fallen more than 30 percent over the last two months.

 

 

Precious and Base Metals

Gold prices edged lower yesterday in range-bound trade as investors booked profits and the dollar strengthened, while palladium fell from a record high hit in the previous session. Spot gold fell 0.2 percent to $1,235.57 per ounce, while U.S gold futures were 0.1 percent lower at $1,240.8 per ounce. Gold has been near key levels of $1,240, so there might be some technical-level profit-taking. A meeting of the Organization of the Petroleum Exporting Countries (OPEC) and U.S nonfarm payroll data expected on Friday are keeping gold investors on guard. U.S Federal Reserve policymakers are to gather at a Dec. 18-19 meeting, at which the central bank is widely expected to raise interest rates. Although a rate hike is already priced in, markets will be closely watching the meeting for clues on rate-hike timings in 2019. The dollar held steady as a spike in risk aversion pressured equities and U.S. Treasury yields. The spread between the two-year and five-year Treasury yields inverted this week and the two-year/10-year spread was at its flattest in more than a decade amid a sharp fall in long-term rates. A yield curve inversion indicates higher borrowing cost in short term, so for safe-haven assets in the longer run it’s going to be very positive. Meanwhile, palladium prices stayed near gold’s after outshining the yellow metal for the first time since 2002 on Wednesday, with prices soaring by around 50 percent in less than four months to record levels. Spot palladium dropped 2.3 percent to $1,215.43 per ounce, still hovering near its record high hit in the previous session. The market now awaits today’s U.S nonfarm payrolls data for November, which is expected to show unemployment remains at 3.7 percent. Investors are seen adopting a cautious stance ahead of the U.S jobs report which could offer insight over the health of the U.S labor force. Amongst other metals, silver fell 0.9 percent to $14.37 per ounce.

 

Traditional Agricultures

Soybean futures fell for the first time in five sessions yesterday. Corn followed soybeans lower, although declines were largely offset by solid export demand. Wheat was pressured by muted export demand as rival suppliers such as Russia continue to challenge U.S grain in global markets.

 

Futures Settlement Price Thursday, December 06, 2018
Instrument Contract Open High Low Settlement Net Change
DJIA DJM18 25132 25135 24253 24907 -249
S & P 500 SPM18 2713 2713.75 2621 2691.5 -26.25
NASDAQ 100 NDM18 6834.25 6853.75 6629.75 6825.75 -22.5
Hang Seng HSH18 26487 26487 26001 26154 -605
Nikkei 225 NKH18 21740 21745 21220 21390 -490
FTSE 100 FTH18 6859 6879 6669.5 6783 -132
Gold GCJ18 1243.5 1249.6 1239.8 1242.8 0.4
Silver SIK18 1457 1457.5 1440.5 1452.5 -3.5
Copper HGK18 277.05 277.15 270.8 274.8 -2.4
Crude Oil CLK18 52.9 53.26 50.05 51.68 -1.21
Wheat WK18 517.75 517.75 509.75 515.25 -2.25
Soybeans SK18 910.25 911.75 896.5 909 -4.25
Corn CK18 383.75 384.25 379.75 382.5 -1.5

 

Daily Swings  (The Pivot Levels)
  Trading Range  
Contract S3 S2 S1 Pivot R1 R2 R3
DJM18 23513 23883 24395 24765 25277 25647 26159
SPM18 2544.33 2582.67 2637.08 2675.42 2729.83 2768.17 2822.58
NDM18 6461.75 6545.75 6685.75 6769.75 6909.75 6993.75 7133.75
HSH18 25455 25728 25941 26214 26427 26700 26913
NKH18 20633 20927 21158 21452 21683 21977 22208
FTH18 6465.83 6567.67 6675.33 6777.17 6884.83 6986.67 7094.33
GCJ18 1228.73 1234.27 1238.53 1244.07 1248.33 1253.87 1258.13
SIK18 1425.83 1433.17 1442.83 1450.17 1459.83 1467.17 1476.83
HGK18 265.00 267.90 271.35 274.25 277.70 280.60 284.05
CLK18 46.86 48.45 50.07 51.66 53.28 54.87 56.49
WK18 502.75 506.25 510.75 514.25 518.75 522.25 526.75
SK18 884.50 890.50 899.75 905.75 915.00 921.00 930.25
CK18 375.58 377.67 380.08 382.17 384.58 386.67 389.08

 

 Source: – News & Quotes (Courtesy:  Reuters)                                                                    

Disclaimer

This information has been prepared for information only and does not constitute an offer or commitment. This information does not constitute investment advice as defined by the rules of the FCA.

The firm or its staff members may trade on their own account and may from time to time hold or act as market makers in investments mentioned in this document. Please note that the firm makes no warranty, expressed or implied, as to the accuracy or completeness of the information and opinions herein. All parties are advised to seek independent professional advice as to the suitability of any products and to their tax, accounting, legal or regulatory implications. City Credit Capital (UK) Ltd is authorized and regulated by the Financial Conduct Authority, reg 232015.

 

 

 

 

 

 

06 Dec 2018

FOREX Newsletter

FOREX Newsletter

December 06, 2018

 

Pulse of the Market

·      Resurgent fears over the U.S-China trade war sapped demand for riskier assets

·      The Pound remained on the back foot as debate on the government’s Brexit plan continued

·      The Canadian dollar weakened to one-and-a-half-year low against its U.S counterpart

·      Australia’s Q/Q growth fell to 0.3% while domestic demand came in weak

The Dollar was little changed against a currency basket yesterday as resurgent fears over the U.S-China trade war sapped demand for riskier assets, while the pound remained on the back foot as a parliamentary debate on the government’s Brexit plan continued. Wall Street slumped on Tuesday after a series of tweets by U.S President Donald Trump dented investor confidence that a full resolution to the U.S.-China trade conflict will be reached during a 90-day trade truce. Trump threatened to impose higher tariffs on China soon unless they make concessions, exacerbating fears over the outlook for global growth. Worries about U.S bond markets signaling an impending recession also weighed on market sentiment. The U.S dollar index, which measures the greenback’s strength against a basket of six major currencies, was at 96.93. Trading volumes were low, with U.S markets closed for a national day of mourning for President George H. W. Bush. Major currencies retraced some of Tuesday’s action today, as investors processed President Donald Trump’s latest comments on China trade. Meanwhile, the Canadian dollar dropped to a six-month low versus its U.S rival, following a Bank of Canada policy update. While it was expected for the BOC to keep its benchmark interest rates unchanged — with the overnight rate at 1.75% — the central bank’s comments on an anticipated loss of economic momentum in the fourth quarter, as well as weaker oil prices threw the Canadian dollar also referred to colloquially as the loonie, into a tailspin. Reduced business investment on the back of trade tensions over the summer, impacted the outlook for the last three months of the year, the BOC said. U.S-China trade relations remained front and center today after tweets by President Donald Trump on Tuesday caused some turbulence. The Australian dollar fell significantly, after recent ABS figures revealed Australia’s Gross Domestic Product slowed in September, missing expectations.

 

Time(GMT)   Economic Release IMP Actual Forecast Prior
00:30 Australia Trade Balance (OCT) Medium   A$3000m A$3017m
07:00 German Factory Orders n.s.a. (YoY) (OCT) Medium   -3.1% -2.2%
12:30 U.S Challenger Job Cuts (YoY) (NOV) Low     153.6%
13:15 U.S ADP Employment Change (NOV) Medium   195k 227k
13:30 U.S Trade Balance (OCT) Medium   -$55.0b -$54.0b
13:30 U.S Initial Jobless Claims (DEC 1) Medium   225k 234k
13:30 U.S Continuing Claims (NOV 24) Medium   1695k 1710k
15:00 Canada Ivey Purchasing Managers Index s.a. (NOV) Low     61.8
15:00 U.S ISM Non-Manufacturing/Services Composite (NOV) High   59 60.3
15:00 U.S Factory Orders (OCT) Medium   -2.0% 0.7%
15:00 U.S Durable Goods Orders (OCT) Medium   -2.4% -4.4%
16:00 DOE U.S. Crude Oil Inventories (NOV 30) Medium     3577k
23:30 Japan Overall Household Spending (YoY) (OCT) Medium   1.1% -1.6%
23:45 U.S Powell Gives Brief Welcome Remarks at Housing Conference High      

Euro

The single currency ended the day almost unchanged after falling earlier in the session. The EU commission presented its plan to reduce the dollar’s overwhelming dominance of the global economy and to strengthen the role of the euro, particularly for energy transactions. European capitals are increasingly frustrated with the global dominance of the dollar. Overall, the EUR/USD traded with a low of 1.1309 and a high of 1.1359 before closing the day around 1.1343 in the New York session.

 

Yen

The Japanese Yen lost ground yesterday. There were no data indicators in Japan or the U.S. Today, the focus will be on employment data will be in focus, with the release of ADP nonfarm payrolls and unemployment claims. We’ll also get a look at ISM Non-Manufacturing PMI. Japan will release household spending and average cash earnings. Overall, the USD/JPY traded with a low of 112.96 and a high of 113.22 before closing the day around 113.17 in the U.S session.

 

British Pound

The British Pound rose against the Dollar and the euro yesterday as traders priced in an increased chance of the UK staying in the EU following a disastrous day for the prime minister. An unprecedented string of three defeats for the government and a key decision on Brexit from Europe’s top court sent sterling up. Overall, the GBP/USD traded with a low of 1.2670 and a high of 1.2796 before closing the day at 1.2731 in the New York session.

 

Canadian Dollar

The Canadian Dollar weakened to one-and-a-half-year low against its U.S counterpart yesterday as investors slashed expectations for further interest rate hikes from the Bank of Canada after a dovish interest rate announcement from the central bank. The Bank of Canada kept its benchmark interest rate on hold at 1.75 per cent. Overall, USD/CAD traded with a low of 1.3250 and a high of 1.3397 before closing the day at 1.3352 in the New York session.

 

Australian Dollar

The Australian Dollar fell significantly, after recent ABS figures revealed Australia’s Gross Domestic Product slowed in September, missing expectations. Q/Q growth fell to 0.3%, and was expected to come in at 0.6%, while domestic demand came in weak. The Australian dollar against the greenback crashed upon the news. Overall, AUD/USD traded with a low of 0.7258 and a high of 0.7354 before closing the day at 0.7273 in the New York session.

 

Euro-Yen

EUR/JPY is trading below 14, 50 and 100 days moving average. Fast stochastic is giving a bearish tone and MACD is issuing a bullish stance. The Relative Strength Index is above 47 and lies below the neutral zone. In general, the pair has gained 0.38%.

 

Sterling-Yen

Currently, GBP/JPY is trading below 14, 50 and 100 days moving average. Fast stochastic is issuing a bearish tone and MACD is also indicating a bearish stance. The Relative Strength Index is above 43 reading and lies below the neutral zone. On the whole, the pair has gained 0.51%.

  

Aussie-Yen

Currently, the cross is trading above 14, 50 and 100 days moving average. Fast stochastic is giving a bearish tone and MACD is indicating a bullish stance. The Relative Strength Index is above 52 reading and lies above the neutral region. In general, the pair has lost 0.58%.

  

Euro-Sterling

This cross is currently trading above 14, 50 and below 100 days moving average. Fast stochastic is indicating a bullish tone and MACD is also issuing a bullish signal. The Relative Strength Index is above 56 and lies above the neutral region. On the whole, the pair has lost 0.10%.

  

Sterling-Swiss

This cross is trading below 14, 50 and 100 days moving average. Fast stochastic is issuing a bearish stance and MACD is also indicating a bearish tone. The Relative Strength Index is above 40 and lies below the neutral region. In general, the pair has gained 0.16%.

 

Appendix

  

FOREX Closing Prices for December 05, 2018
Currency Open High Low Close Net Chg
EUR/USD 1.1341 1.13599 1.13095 1.13432 0.0002
USD/JPY 112.75 113.223 112.963 113.175 0.4150
GBP/USD 1.27151 1.27964 1.26703 1.27317 0.0017
USD/CHF 0.99718 1.00066 0.99686 0.99752 0.0003
USD/CAD 1.32612 1.3397 1.32504 1.33527 0.0093
EUR/JPY 127.887 128.468 127.766 128.393 0.4850
GBP/JPY 143.385 144.515 143.244 144.109 0.7280
CHF/JPY 113.037 113.469 112.915 113.422 0.3860
AUD/JPY 82.72 82.961 82.14 82.241 -0.4830
EUR/GBP 0.8921 0.893 0.88728 0.89077 -0.0009
EUR/CHF 1.13108 1.1329 1.13092 1.13162 0.0004
GBP/CHF 1.26791 1.27601 1.26702 1.27016 0.0020

 

 

Daily Pivot Points
  Trading Range  
Contract S3 S2 S1 Pivot R1 R2 R3
EUR/USD 1.1265 1.1287 1.1315 1.1338 1.1366 1.1388 1.1416
USD/JPY 112.76 112.86 113.02 113.12 113.28 113.38 113.54
GBP/USD 1.2543 1.2607 1.2669 1.2733 1.2795 1.2859 1.2921
USD/CHF 0.9922 0.9945 0.9960 0.9983 0.9998 1.0021 1.0036
USD/CAD 1.3123 1.3187 1.3270 1.3333 1.3416 1.3480 1.3563
EUR/JPY 127.25 127.51 127.95 128.21 128.65 128.91 129.35
GBP/JPY 142.13 142.69 143.40 143.96 144.67 145.23 145.94
CHF/JPY 112.51 112.71 113.07 113.27 113.62 113.82 114.18
AUD/JPY 81.11 81.63 81.93 82.45 82.75 83.27 83.58
EUR/GBP 0.8820 0.8846 0.8877 0.8904 0.8934 0.8961 0.8991
EUR/CHF 1.1287 1.1298 1.1307 1.1318 1.1327 1.1338 1.1347
GBP/CHF 1.2571 1.2621 1.2661 1.2711 1.2751 1.2801 1.2841

 

Sources:  News, Charts & Quotes (Courtesy: Reuters, US Department Of Treasury)

 

Disclaimer

This information has been prepared for information only and does not constitute an offer or commitment. This information does not constitute investment advice as defined by the rules of the FCA.

The firm or its staff members may trade on their own account and may from time to time hold or act as market makers in investments mentioned in this document. Please note that the firm makes no warranty, expressed or implied, as to the accuracy or completeness of the information and opinions herein. All parties are advised to seek independent professional advice as to the suitability of any products and to their tax, accounting, legal or regulatory implications. City Credit Capital (UK) Ltd is authorized and regulated by the Financial Conduct Authority, reg 232015.

 

 

06 Dec 2018

Daily Market View

Daily Market View

Thursday, December 06, 2018
          U.S Stock Market

 

DJIA S & P 500 NASDAQ
25156 2717.75 6848.25
+0.10% +0.24% +0.40%

U.S stock futures closed higher yesterday, pointing to a slight rebound from the steep losses seen in regular trading. Dow Jones Industrial Average futures climbed 110 points, indicating a gain of 113.93 points. S&P 500 and NASDAQ 100 futures also pointed to slight gains. U.S stock futures closed earlier on Tuesday out of respect for former President George H.W. Bush’s funeral. The U.S stock market was also closed yesterday. The Dow Jones Industrial Average plunged 799.36 points on Tuesday, while the S&P 500 dropped more than 3 percent. The NASDAQA, meanwhile, fell 3.8 percent to close in correction territory. The yield on the three-year Treasury note surpassed its five-year counterpart on Monday. When a so-called yield curve inversion happens — short-term yields trading above longer-term rates — a recession could follow, though it is often years away after the signal triggers. Stocks began falling to their lows of the day after Jeffrey Gundlach, CEO of Doubleline Capital, told Reuters this inversion signals that the economy “is poised to weaken.”

 

 

Major Economic Releases for Today
Period Event GMT Forecast Previous

nov

U.S Challenger Job Cuts (YoY) 12:30   153.6%

oct

U.S Trade Balance 13:30 -$55.0b -$54.0b

dec

U.S Initial Jobless Claims 13:30 225k 234k

nov

U.S Continuing Claims 13:30 1695k 1710k

nov

U.S ISM Non-Manufacturing/Services Composite 15:00 59 60.3

oct

U.S Factory Orders 15:00 -2.0% 0.7%

oct

U.S Durable Goods Orders 15:00 -2.4% -4.4%

nov

DOE U.S. Crude Oil Inventories 16:00   3577k

 

U.S Powell Gives Brief Welcome Remarks at Housing Conference 23:45    
Dow Jones Industrial Average

Dow Jones futures fell earlier in the session, after the arrest of the CFO of Chinese telecom gear giant Huawei. Canada’s arrest, at the behest of the U.S, enraged China. Investors can find parallels to the current choppy stock market rally from this past spring and summer. But there are key differences that aren’t encouraging. Long-term support lines are acting as resistance. Stock market rallies are short-lived, while the stock market struggles to make higher highs. Apple and FANG stocks Facebook, Amazon.com, Netflix and Google parent Alphabet are all in worse shape than earlier this year.

 

NASDAQ 100

The tech-heavy NASDAQ index fell nearly 4 percent on Tuesday, with tech stocks like Apple, Amazon, Alphabet and Facebook weighing most heavily. The losses extend pain periods for Apple, which has seen downturn in recent weeks, and Facebook, which is suffering a down year on the heels of several scandals.

Oil

Oil prices edged higher yesterday as global investors’ awaited clarity on a possible, but far-from-assured, output cut by major producers gathering in Vienna. The Joint OPEC-Non-OPEC Ministerial Monitoring Committee, or JMMC, which includes the Organization of the Petroleum Exporting Countries member Saudi Arabia and nonmember Russia, met yesterday. It recommended a production cut from the September-October output levels, Oman’s oil minister told reporters, according to Dow Jones. The minister also said Russia agreed on the need for an output cut. OPEC will hold its official meeting today, with another key meeting between the group’s members and nonmember allies to be held Friday. Saudi Arabia’s oil minister had cast fresh doubt on whether that production-cut agreement would be reached by OPEC, plus Russia and other producers, in Vienna today, the Wall Street Journal reported, citing news reports from the region. West Texas Intermediate crude for January delivery tacked on 15 cents, or 0.3%, at $53.40 a barrel on the New York Mercantile Exchange. The contract tumbled 22% in November, the biggest monthly fall since October 2008.

 

 

Precious and Base Metals

Gold prices edged lower yesterday, a day after hitting their highest level in more than five weeks, as comments from a Federal Reserve official kept alive the prospect of gradually rising U.S interest rates. Meanwhile, palladium hit a new record high of $1,263.44 an ounce, widening its premium over gold to around $25, helped by a sustained supply deficit and increased speculative interest. It was 2.1 percent higher at $1,259.05 per ounce. Spot gold was down 0.1 percent at $1,237.31 per ounce, after hitting its highest since Oct. 26 at $1,241.86 on Tuesday. U.S gold futures were down 0.3 percent at $1,243.20 per ounce. The U.S Federal Reserve talking about the gradual increase in rates is going against some of the expectations that have been building up recently. The U.S central bank has increased interest rates three times this year but concerns about weaker growth have stoked bets that the Fed will end its tightening campaign sooner than previously thought. However, New York Fed President John Williams on Tuesday said the Federal Reserve should expect to continue raising interest rates “over the next year or so” even while it pays close attention to possible risks highlighted by financial markets. The central bank is widely expected to raise rates at its policy meeting on Dec. 18-19 and investors are keeping a close eye on signals for the future path of interest rates next year. Higher interest rates increase the opportunity cost of holding non-yielding bullion. World stocks tumbled to one-week lows yesterday, as declines by long-dated U.S. bond yields and a renewal of trade concerns stoked fears of a downturn in the United States, the world’s biggest economy, and pressured the dollar. Gold prices have recovered about 7 percent from 19-month lows hit in mid-August. The momentum certainly appears to be with the bulls at the moment, especially if the dollar remains under pressure in the aftermath of the trade war truce. Spot silver was steady at$14.52 per ounce.

 

 

Traditional Agricultures

Soybeans inched lower, consolidating after multi-month highs this week as investors sought clues as to whether a truce between Washington and Beijing in their trade dispute would revive U.S soybean sales to China.

 

 

 

Futures Settlement Price Wednesday, December 05, 2018
Instrument Contract Open High Low Settlement Net Change
DJIA DJM18 25023 25188 25003 25156 110
S & P 500 SPM18 2699.5 2720.5 2698 2717.75 16
NASDAQ 100 NDM18 6795.5 6861.25 6791.75 6848.25 45.75
Hang Seng HSH18 26784 26942 26720 26759 -507
Nikkei 225 NKH18 21645 21975 21630 21880 -155
FTSE 100 FTH18 6965.5 6978 6908.5 6915 -25
Gold GCJ18 1243.8 1244.6 1238.75 1242.4 -1.2
Silver SIK18 1459.5 1461 1448 1456 -3
Copper HGK18 275.85 277.7 274.5 277.2 1.35
Crude Oil CLK18 52.56 54.4 52.12 52.89 0.33
Wheat WK18 521.25 521.75 513.25 517.5 -4.5
Soybeans SK18 909.75 916.25 908 913.25 2
Corn CK18 383 386.25 382.25 384 -0.25

 

 

Daily Swings  (The Pivot Levels)
  Trading Range  
Contract S3 S2 S1 Pivot R1 R2 R3
DJM18 24858 24931 25043 25116 25228 25301 25413
SPM18 2681.17 2689.58 2703.67 2712.08 2726.17 2734.58 2748.67
NDM18 6736.75 6764.25 6806.25 6833.75 6875.75 6903.25 6945.25
HSH18 26450 26585 26672 26807 26894 27029 27116
NKH18 21337 21483 21682 21828 22027 22173 22372
FTH18 6820.17 6864.33 6889.67 6933.83 6959.17 7003.33 7028.67
GCJ18 1233.38 1236.07 1239.23 1241.92 1245.08 1247.77 1250.93
SIK18 1436.00 1442.00 1449.00 1455.00 1462.00 1468.00 1475.00
HGK18 272.03 273.27 275.23 276.47 278.43 279.67 281.63
CLK18 49.59 50.86 51.87 53.14 54.15 55.42 56.43
WK18 504.75 509.00 513.25 517.50 521.75 526.00 530.25
SK18 900.50 904.25 908.75 912.50 917.00 920.75 925.25
CK18 378.08 380.17 382.08 384.17 386.08 388.17 390.08

 

 Source: – News & Quotes (Courtesy:  Reuters)                                                                    

Disclaimer

This information has been prepared for information only and does not constitute an offer or commitment. This information does not constitute investment advice as defined by the rules of the FCA.

The firm or its staff members may trade on their own account and may from time to time hold or act as market makers in investments mentioned in this document. Please note that the firm makes no warranty, expressed or implied, as to the accuracy or completeness of the information and opinions herein. All parties are advised to seek independent professional advice as to the suitability of any products and to their tax, accounting, legal or regulatory implications. City Credit Capital (UK) Ltd is authorized and regulated by the Financial Conduct Authority, reg 232015.

 

 

 

 

 

 

05 Dec 2018

FOREX Newsletter

FOREX Newsletter

December 05, 2018

 

Pulse of the Market

·      Safe-haven buying emerged after President Trump’s tweet raised fears that trade war was not over

·      Falling Treasuries were blamed for the leg lower in the greenback earlier in the session

·      The Pound Fell as Prime Minister Theresa May’s government was found in contempt of parliament

·      Goldman Sachs said it continued to recommend investors position for a “tactical bounce in USD/CAD

The U.S Dollar rose from lows against its rivals yesterday after the plunge in U.S Treasury yields stalled. Safe-haven buying emerged after President Donald Trump’s tweets raised fears that the trade war was not over. The U.S dollar index, which measures the greenback against a trade-weighted basket of six major currencies, fell by 0.11% to 96.86, but was above a session low of 96.31. Trump said in a tweet he was “Tariff Man,” reminding investors that he was not afraid to re-escalate trade tensions with China, scaling back optimism from a day earlier, prompting support for Treasuries and helping the greenback move off lows. Falling Treasuries were blamed for the leg lower in the greenback earlier in the session, as fears of an economic recession grew after short-dated Treasury rates rose above longer-dated rates, referred to as an inversion of the Treasury yield curve, a signal of a potential economic recession. Yields on two maturities at the front of the Treasury curve rose above longer-dated 5-year notes overnight Tuesday for the first time in more than a decade. The pound, meanwhile, reversed its gains from earlier after Prime Minister Theresa May’s government was found in contempt of parliament for refusing to release its full legal advice on Brexit. GBP/USD fell from a session high of $1.2839, which had followed hopes that Brexit could be canceled after a top European Officer said that UK should be able to unilaterally cancel its withdrawal from the EU. USD/CAD rose 0.45% to $1.3256 a day ahead of Bank of Canada’s interest rate decision, widely expected to remain unchanged at 1.75%. Ahead of the rate decision, Goldman Sachs said it continued to recommend investors position for a “tactical bounce in CAD vs. USD going into year-end,” citing expectations the Bank of Canada will continue to keep a January rate hike on the table. The markets were delighted with the results of a weekend meeting between President Trump and Chinese President Xi Jinping at the G-20 summit.

 

Time(GMT)   Economic Release IMP Actual Forecast Prior
00:30 Nikkei Japan PMI Services (NOV) Medium     52.4
00:30 Australia Gross Domestic Product (YoY) (3Q) High   3.3% 3.4%
01:45 Caixin China PMI Services (NOV) Medium   50.8 50.8
08:55 Markit Germany Services PMI (NOV) Low   53.3 53.3
09:00 Markit Eurozone Services PMI (NOV) Low   53.1 53.1
09:30 Markit/CIPS UK Services PMI (NOV) Medium   52.5 52.2
10:00 Euro-Zone Retail Sales (YoY) (OCT) Medium   2.0% 0.8%
12:00 U.S MBA Mortgage Applications (NOV 30) Medium     5.5%
13:15 U.S ADP Employment Change (NOV) Medium   195k 227k
14:45 Markit US Services PMI (NOV) Low   54.4 54.4
15:00 Bank of Canada Rate Decision (DEC 5) High   1.75% 1.75%
15:00 U.S ISM Non-Manufacturing/Services Composite (NOV) High   59 60.3
15:30 DOE U.S Crude Oil Inventories (NOV 30) Medium     3577k
19:00 U.S Federal Reserve Releases Beige Book Medium      

 

Euro

The single currency traded sharply higher earlier in yesterday’s session but ended the day slightly lower. EU finance ministers agreed yesterday to give the euro zone ESM bailout fund new responsibilities, but delayed decisions on a euro zone budget and a deposit guarantee scheme after failing to reach an agreement. Overall, the EUR/USD traded with a low of 1.1317 and a high of 1.1417 before closing the day around 1.1341 in the New York session.

 

Yen

The Japanese Yen traded higher yesterday. The markets were delighted with the results of meeting between President Trump and Chinese President Xi Jinping at the G-20 summit. Trump had threatened to raise tariffs on all Chinese products from 10 percent to 25 percent on December 1, but the Chinese convinced Trump to hold off on the tariffs until March 1. Overall, the USD/JPY traded with a low of 112.55 and a high of 113.64 before closing the day around 112.76 in the U.S session.

 

British Pound

The British Pound traded higher at the start of the session following an unexpected piece of legal advice. The advocate general of the European Court of Justice said earlier today that the British government has the unilateral right to withdraw its notice of intent to leave the European Union. However, GBP ended the day lower against the U.S Dollar. Overall, the GBP/USD traded with a low of 1.2656 and a high of 1.2837 before closing the day at 1.2714 in the New York session.

 

Canadian Dollar

The Canadian Dollar edged higher in yesterday’s Asian trading hours, after sharp gains at the start of the week. On the release front today, the Bank of Canada is expected to maintain the benchmark rate at 1.75%. The Canadian dollar started the week with sharp gains after the U.S and China agreed to a truce in the tariff war. Overall, USD/CAD traded with a low of 1.3161 and a high of 1.3264 before closing the day at 1.3259 in the New York session.

 

Australian Dollar

The Australian Dollar has touched a multi-month peak in a knee jerk reaction to a pause in the Sino-US trade dispute, though there was plenty of caution about the prospects of a lasting peace. The White House said President Donald Trump told Chinese President Xi Jinping that he would not boost tariffs on US$200 billion of Chinese goods on January 1 if Beijing agreed to buy an unspecified amount of US goods. Overall, AUD/USD traded with a low of 0.7324 and a high of 0.7391 before closing the day at 0.7334 in the New York session.

 

Euro-Yen

EUR/JPY is trading below 14, 50 and 100 days moving average. Fast stochastic is giving a bearish tone and MACD is issuing a bullish stance. The Relative Strength Index is above 43 and lies below the neutral zone. In general, the pair has lost 0.86%.

 

Sterling-Yen

Currently, GBP/JPY is trading below 14, 50 and 100 days moving average. Fast stochastic is issuing a bearish tone and MACD is also indicating a bearish stance. The Relative Strength Index is above 38 reading and lies below the neutral zone. On the whole, the pair has lost 0.83%.

  

Aussie-Yen

Currently, the cross is trading above 14, 50 and 100 days moving average. Fast stochastic is giving a bearish tone and MACD is indicating a bullish stance. The Relative Strength Index is above 56 reading and lies above the neutral region. In general, the pair has lost 1.03%.

 

Euro-Sterling

This cross is currently trading above 14, 50 and below 100 days moving average. Fast stochastic is indicating a bullish tone and MACD is also issuing a bullish signal. The Relative Strength Index is above 59 and lies above the neutral region. On the whole, the pair has lost 0.05%.

 

Sterling-Swiss

This cross is trading below 14, 50 and 100 days moving average. Fast stochastic is issuing a bearish stance and MACD is also indicating a bearish tone. The Relative Strength Index is above 37 and lies below the neutral region. In general, the pair has lost 0.09%.

 

Appendix

  

FOREX Closing Prices for December 04, 2018
Currency Open High Low Close Net Chg
EUR/USD 1.13523 1.14173 1.13171 1.13417 -0.0010
USD/JPY 113.626 113.642 112.557 112.76 -0.8790
GBP/USD 1.2723 1.28378 1.26566 1.27147 -0.0007
USD/CHF 0.99773 0.9989 0.99285 0.99726 -0.0005
USD/CAD 1.31966 1.32644 1.31616 1.32598 0.0064
EUR/JPY 128.992 129.018 127.596 127.908 -1.1080
GBP/JPY 144.58 144.734 142.817 143.381 -1.1960
CHF/JPY 113.833 113.859 112.838 113.036 -0.8210
AUD/JPY 83.606 83.635 82.536 82.724 -0.8620
EUR/GBP 0.89201 0.8943 0.88878 0.89165 -0.0004
EUR/CHF 1.13278 1.13462 1.13037 1.1312 -0.0015
GBP/CHF 1.26958 1.27546 1.2644 1.26816 -0.0012

 

 

Daily Pivot Points
  Trading Range  
Contract S3 S2 S1 Pivot R1 R2 R3
EUR/USD 1.1200 1.1259 1.1300 1.1359 1.1400 1.1459 1.1501
USD/JPY 111.25 111.90 112.33 112.99 113.42 114.07 114.50
GBP/USD 1.2454 1.2555 1.2635 1.2736 1.2816 1.2918 1.2997
USD/CHF 0.9877 0.9903 0.9938 0.9963 0.9998 1.0024 1.0059
USD/CAD 1.3090 1.3126 1.3193 1.3229 1.3296 1.3331 1.3398
EUR/JPY 125.91 126.75 127.33 128.17 128.75 129.60 130.17
GBP/JPY 140.64 141.73 142.55 143.64 144.47 145.56 146.39
CHF/JPY 111.61 112.22 112.63 113.24 113.65 114.27 114.67
AUD/JPY 81.20 81.87 82.30 82.97 83.39 84.06 84.49
EUR/GBP 0.8833 0.8861 0.8889 0.8916 0.8944 0.8971 0.8999
EUR/CHF 1.1253 1.1278 1.1295 1.1321 1.1338 1.1363 1.1380
GBP/CHF 1.2522 1.2583 1.2632 1.2693 1.2743 1.2804 1.2853

 

Sources:  News, Charts & Quotes (Courtesy: Reuters, US Department Of Treasury)

 

Disclaimer

This information has been prepared for information only and does not constitute an offer or commitment. This information does not constitute investment advice as defined by the rules of the FCA.

The firm or its staff members may trade on their own account and may from time to time hold or act as market makers in investments mentioned in this document. Please note that the firm makes no warranty, expressed or implied, as to the accuracy or completeness of the information and opinions herein. All parties are advised to seek independent professional advice as to the suitability of any products and to their tax, accounting, legal or regulatory implications. City Credit Capital (UK) Ltd is authorized and regulated by the Financial Conduct Authority, reg 232015.

 

 

05 Dec 2018

Daily Market View

Daily Market View

Wednesday, December 05, 2018
          U.S Stock Market

 

DJIA S & P 500 NASDAQ
25046 2701.75 6802.50
-3.10% -3.24% -3.80%

U.S stocks plunged, with the Dow Jones Industrial Average tumbling almost 800 points, as a litany of concerns wiped out the rally in risk assets. Trade-sensitive shares sank as angst mounted that the U.S and China made no meaningful progress on the trade front this weekend. Financial shares got hammered as the yield curve continued to flatten, with the latest nudge from a hawkish comment by a Federal Reserve official. Losses accelerated and trading volumes in S&P 500 futures spiked after contracts for broke below their 200-day moving average. Adding to the risk aversion was news that U.K. Prime Minister Theresa May’s push to avoid a so-called “hard Brexit” may be at risk. President Donald Trump suggested Tuesday that he could extend a 90-day truce in his trade war with China, while his top White House economic adviser backtracked from the president’s announcement that Beijing had agreed to reduce tariffs on U.S.-made cars. Traders are even starting to bet that the Fed will cut interest rates as soon as 2020.

 

Major Economic Releases for Today
Period Event GMT Forecast Previous

nov

Nikkei Japan PMI Services 00:30 52.4

3Q

Australia Gross Domestic Product (YoY) 00:30 3.3% 3.4%

nov

Caixin China PMI Services 01:45 50.8 50.8

oct

Euro-Zone Retail Sales (YoY) 10:00 2.0% 0.8%

nov

U.S MBA Mortgage Applications 12:00 5.5%

nov

U.S ADP Employment Change 13:15 195k 227k

dec

Bank of Canada Rate Decision 15:00 1.75% 1.75%

nov

U.S ISM Non-Manufacturing/Services Composite 15:00 59 60.3

nov

DOE U.S Crude Oil Inventories 15:30 3577k
Dow Jones Industrial Average

The Dow Jones Industrial Average declined 3.10%. The best performers of the session on the Dow Jones Industrial Average were Procter & Gamble Company, which fell 0.01% or 0.01 points to trade at 93.31 at the close. Meanwhile, Verizon Communications Inc. fell 0.12% or 0.07 points to end at 58.09 and Johnson & Johnson was down 0.12% or 0.18 points to 146.03 in late trade. The worst performers of the session were Caterpillar Inc., which fell 6.93% or 9.63 points to trade at 129.32 at the close. Boeing Co declined 4.85% or 17.46 points to end at 342.50 and Intel Corporation was down 4.75% or 2.38 points to 47.75.

 

NASDAQ 100

The NASDAQ index lost 3.80%. The top performers on the NASDAQ Composite were Pernix Therapeutics Holdings Inc. which rose 41.63% to 0.575, American Electric Technologies Inc. which was up 37.96% to settle at 1.490 and Novelion Therapeutics Inc. which gained 32.65% to close at 1.300. The worst performers were Determine Inc. which was down 25.04% to 0.494 in late trade, ConforMIS Inc. which lost 22.46% to settle at 0.56 and Smaaash Entertainment Inc. which was down 19.64% to 2.67 at the close.

Oil

Oil prices pared gains in a volatile trade yesterday as fears flared that demand would stall due to a trade war between the U.S and China, and as Russia remained a stumbling block to a deal to cut global crude supply. U.S President made clear he would revert to tariffs on China if the two sides could not resolve their differences. The comments put a damper on market enthusiasm that drove oil about 4 percent higher on Monday after Trump and Chinese counterpart Xi Jinping agreed at a meeting of the Group of 20 industrialized nations to pause an escalating trade dispute. In Monday’s session, expectations of a production cut by the OPEC and its allies, when they meet on Thursday and Friday in Vienna, had also supported prices. OPEC and its allies are working towards a deal to reduce oil output by at least 1.3 million barrels per day, four sources said yesterday, adding that Russia’s resistance to a significant production cut was so far the main stumbling block.

 

Precious and Base Metals

Gold rose to its highest in more than five weeks yesterday as the dollar sagged after the United States and China agreed a 90-day pause on fresh trade tariffs, while palladium hit a record high, leaving it about $4 short of parity with bullion. Palladium rose more than 2 percent to $1,231.50 per ounce, after scaling an all-time high of $1,235. The market is structurally in a significant deficit, so there are clearly concerns about that. We’ve got a lot momentum and positive investor sentiment flowing into the market at the moment. The metal, used mainly used in emissions-reducing auto catalysts for vehicles, has gained about 48 percent since mid-August, but not all analysts think the price is justified. The high price premium on palladium is not justified in our opinion because car sales have been fairly weak on all key markets of late. U.S. tariffs have been threatened on imports of cars and car parts from the European Union. Meanwhile, spot gold rose for the second straight session, up 0.6 percent at $1,238.90. Prices touched $1,241.10 earlier in the session, their highest since Oct. 26. U.S. gold futures were up 0.4 percent at $1,244.70 per ounce. The dollar weakened against its major peers, pressured by a thaw in trade tensions between Washington and Beijing, making gold cheaper for holders of other currencies. Primarily it is the weaker dollar that is providing assistance and that will be the key driver in the short term. However, it is going to find it difficult to sustain the current rally unless there is even more dollar weakness, simply because the overall investor sentiment for riskier assets has improved and that would prove to be a drag in the short term. The temporary freeze on further hostilities in the trade war sparked a global rally in equity markets on Monday. Global trade tensions over the past few months have seen investors opt for the safety of the U.S currency rather than bullion, a traditional safe haven asset. Among other precious metals, spot silver rose 1 percent to $14.52 per ounce.

 

 

Traditional Agricultures

Soybeans were little changed yesterday as dealers awaited concrete indications that China will resume its huge imports of U.S soy halted by the trade war between the two countries. Corn and wheat are being undermined by the lack of strength in soybeans.

 

Futures Settlement Price Tuesday, December 04, 2018
Instrument Contract Open High Low Settlement Net Change
DJIA DJM18 25835 25837 25016 25046 -800
S & P 500 SPM18 2789.75 2790.25 2697 2701.75 -89.25
NASDAQ 100 NDM18 7054.25 7055 6788 6802.5 -256
Hang Seng HSH18 27108 27292 27037 27266 -15
Nikkei 225 NKH18 22590 22600 22015 22035 -570
FTSE 100 FTH18 7055 7098.5 6924.5 6940 -153
Gold GCJ18 1243.8 1244.4 1239.2 1240.2 -3.4
Silver SIK18 1459.5 1461 1449 1452 -7
Copper HGK18 275.85 276.95 275.5 276.1 0.25
Crude Oil CLK18 53.1 54.52 52.41 52.56 -0.49
Wheat WK18 521.25 521.75 519.5 520.25 -1.75
Soybeans SK18 903.25 912.5 899.25 911.25 5.75
Corn CK18 383 383.75 382.5 383.5 -0.75

 

Daily Swings  (The Pivot Levels)
  Trading Range  
Contract S3 S2 S1 Pivot R1 R2
DJM18 23941 24479 24762 25300 25583 26121 26404
SPM18 2575.83 2636.42 2669.08 2729.67 2762.33 2822.92 2855.58
NDM18 6441.67 6614.83 6708.67 6881.83 6975.67 7148.83 7242.67
HSH18 26850 26943 27105 27198 27360 27453 27615
NKH18 21248 21632 21833 22217 22418 22802 23003
FTH18 6702.83 6813.67 6876.83 6987.67 7050.83 7161.67 7224.83
GCJ18 1232.93 1236.07 1238.13 1241.27 1243.33 1246.47 1248.53
SIK18 1435.00 1442.00 1447.00 1454.00 1459.00 1466.00 1471.00
HGK18 273.97 274.73 275.42 276.18 276.87 277.63 278.32
CLK18 49.70 51.05 51.81 53.16 53.92 55.27 56.03
WK18 517.00 518.25 519.25 520.50 521.50 522.75 523.75
SK18 889.58 894.42 902.83 907.67 916.08 920.92 929.33
CK18 381.50 382.00 382.75 383.25 384.00 384.50 385.25

 

 Source: – News & Quotes (Courtesy:  Reuters)                                                                    

Disclaimer

This information has been prepared for information only and does not constitute an offer or commitment. This information does not constitute investment advice as defined by the rules of the FCA.

The firm or its staff members may trade on their own account and may from time to time hold or act as market makers in investments mentioned in this document. Please note that the firm makes no warranty, expressed or implied, as to the accuracy or completeness of the information and opinions herein. All parties are advised to seek independent professional advice as to the suitability of any products and to their tax, accounting, legal or regulatory implications. City Credit Capital (UK) Ltd is authorized and regulated by the Financial Conduct Authority, reg 232015.