29 Jun 2018

Daily  Market View

             

   Daily  Market View

  Friday, June 29, 2018
          U.S Stock Market

 

DJIA S & P 500 NASDAQ
24225 2719.50 7060.50
+0.41% +0.62% +0.79%

U.S stock-market indexes closed higher yesterday, with broad-based gains led by a rally in financials and technology sectors. The S&P 500 financials sector rose nearly 1% and snapped a 13-day slump, its longest losing streak ever. The S&P 500 index rose 16.68 points, a rise of 0.6%. The NASDAQ added 58.60 points, or 0.8%. The Dow Jones Industrial Average rose 98.46 points, a gain of 0.4%. The blue-chip average remained below its 200-day moving average as it came off its lowest close since early May. Equities have been volatile, with major indexes seeing big swings in both directions, often in the same session, and usually in response to changing headlines about trade policy. However, they remain in the fairly tight trading range that indexes have been mired in for months. Thus far this week, the Dow is off 1.4%, the S&P has lost 1.6%, and the NASDAQ has lost 2.5%. For the second quarter, the Dow is up 0.5%, the S&P has gained 2.9%, and the NASDAQ is up 6.2%. For 2018, the Dow has lost 2%, the S&P has gained 1.6%, and the NASDAQ has surged 8.7%.

 

Major Economic Releases for Today
Period Event GMT Forecast Previous

may

German Retail Sales (YoY) 06:00 1.8% 1.2%

jun

German Unemployment Change (000’s) 07:55 -8k -11k

jun

German Unemployment Claims Rate s.a. 07:55 5.2% 5.2%

1Q

U.K Gross Domestic Product (YoY) 08:30 1.2% 1.2%

jun

Euro-Zone Consumer Price Index Core (YoY) 09:00 1.0% 1.1%

apr

Canada Gross Domestic Product (YoY) 12:30 2.6% 2.9%

may

U.S Personal Spending 12:30 0.4% 0.6%

may

U.S PCE Core (YoY) 12:30 1.9% 1.8%

jun

U.S Chicago Purchasing Manager 13:45 60.0 62.7
Dow Jones Industrial Average

The Dow Jones Industrial Average rose 0.41% yesterday. The best performers of the session on the Dow Jones Industrial Average were Verizon Communications Inc., which rose 3.14% or 1.55 points to trade at 50.86 at the close. Meanwhile, International Business Machines added 1.86% or 2.56 points to end at 140.04 and JPMorgan Chase & Co was up 1.64% or 1.69 points to 104.93 in late trade. The worst performers of the session were UnitedHealth Group Incorporated, which fell 1.32% or 3.27 points to trade at 244.90 at the close. Walmart Inc. declined 1.19% or 1.03 points to end at 85.86 and General Electric Company was down 0.93% or 0.13 points to 13.83.

 

 

NASDAQ 100

The tech heavy NASDAQ index added 0.79% yesterday. The top performers on the NASDAQ Composite were MagneGas Corp which rose 51.92% to 0.562, VivoPower International PLC which was up 61.38% to settle at 2.34 and Leading Brands Inc. which gained 28.07% to close at 1.460. The worst performers were Arsanis Inc. which was down 78.01% to 4.00 in late trade, China Advanced Construction Materials which lost 29.79% to settle at 4.950 and Differential Brands Group Inc. which was down 26.61% to 4.000 at the close.

 

Oil

Oil prices climbed yesterday, with U.S. crude hitting a three-and-a-half year high, bolstered by supply concerns due to U.S sanctions that could cause a large drop in crude exports from Iran. Crude futures rose 69 cents, nearly 1 percent, to settle at $73.45 a barrel. It reached $74.03 earlier in the session, the highest since Nov. 26, 2014. The United States this week demanded countries halt imports of Iranian oil from November; a hardline position the Trump administration hopes will cut off funding to Tehran. Yesterday, officials said they would work with countries on a case-by-case basis. China, the biggest importer of Iran’s oil, has not committed to the U.S. position. The U.S. demands follow a decision by the Organization of the Petroleum Exporting Countries last week to increase production to try to moderate oil prices that have rallied more than 40 percent over the last year.

 

Precious and Base Metals

Gold fell to its lowest in more than six months yesterday as the dollar held near a one-year high, propelled by mounting pressure from a U.S.-driven trade dispute that has led investors to dump equities. Global equities slipped to their lowest in almost three months, buffeted again after U.S. President Donald Trump and White House economic adviser Larry Kudlow outlined plans to clamp down on Chinese acquisitions of sensitive American technologies. The trade tensions pushed the dollar to test a one-year high against a currency basket. A strong dollar makes dollar-priced gold costlier for non U.S. investors and while falling equities, seen as risky assets, usually help safe-haven gold, they have failed to do so this time. There is some safe-haven demand going into gold but not as much as is going elsewhere, like the dollar or treasuries or safe-haven currencies like the franc. Spot gold was flat at $1,250.80 an ounce. Earlier, it touched $1,248.21, its lowest since mid-December.  U.S. gold futures for August delivery dropped 0.3 percent at $1,252.70 an ounce. Investors are positioning for a potentially fraught meeting of European Union leaders to discuss issues such as migration, Brexit and trade. They are also looking for indications on the survival prospects for the fractious new German coalition. Nowadays, there is no safe-haven appeal for gold; people are tracking other assets as safe havens. In a nod to dollar bulls, Boston Federal Reserve President Eric Rosengren on Wednesday said the central bank should continue to raise interest rates gradually to lower the risk of a major policy error. The dollar index’s strength is mainly powered by hopes for higher rates and rising yields and there seems to be no change in this any time soon.  Indicating falling demand for gold, holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, dropped 0.36 percent to 821.69 tonnes on Wednesday. In other precious metals, spot silver was 0.3 percent higher at $16.10 an ounce. In the prior session, it touched its lowest since mid-December at $15.94.

 

 

 

Wheat, Corn, and Soybeans

Wheat futures edged lower falling for four in five sessions as ample global supplies and pressure from harvest of the U.S winter crop weighed on the market.

 

 

 

Futures Settlement Price Thursday, June 28, 2018
Instrument Contract Open High Low Settlement Net Change
DJIA DJM18 24135 24292 23976 24225 81
S & P 500 SPM18 2705 2726.25 2693 2719.5 13.5
NASDAQ 100 NDM18 6988.25 7075.5 6955.75 7060.5 59.5
Hang Seng HSH18 28184 28383 27959 28265 95
Nikkei 225 NKH18 22175 22275 22015 22245 0
FTSE 100 FTH18 7530 7594.5 7512 7585.5 74
Gold GCJ18 1253.5 1255.5 1247 1249.8 -4.3
Silver SIK18 1603 1608 1586.5 1597.5 -7
Copper HGK18 297.8 298.1 292.95 295.65 -2.45
Crude Oil CLK18 72.23 73.99 72.17 73.35 0.98
Wheat WK18 487.5 492.25 482.5 484 -4.75
Soybeans SK18 871.5 874.75 864.75 867.25 -6.25
Corn CK18 360.75 361.25 353.75 `355.00 -7.25

 

Daily Swings  (The Pivot Levels)
  Trading Range  
Contract S3 S2 S1 Pivot R1 R2 R3
DJM18 23721 23848 24037 24164 24353 24480 24669
SPM18 2666.33 2679.67 2699.58 2712.92 2732.83 2746.17 2766.08
NDM18 6865.92 6910.83 6985.67 7030.58 7105.42 7150.33 7225.17
HSH18 27598 27778 28022 28202 28446 28626 28870
NKH18 21822 21918 22082 22178 22342 22438 22602
FTH18 7451.00 7481.50 7533.50 7564.00 7616.00 7646.50 7698.50
GCJ18 1237.53 1242.27 1246.03 1250.77 1254.53 1259.27 1263.03
SIK18 1565.17 1575.83 1586.67 1597.33 1608.17 1618.83 1629.67
HGK18 287.88 290.42 293.03 295.57 298.18 300.72 303.33
CLK18 70.53 71.35 72.35 73.17 74.17 74.99 75.99
WK18 470.50 476.50 480.25 486.25 490.00 496.00 499.75
SK18 853.08 858.92 863.08 868.92 873.08 878.92 883.08
CK18 344.58 349.17 352.08 356.67 359.58 364.17 367.08

 

  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.

 

 

 

29 Jun 2018

FOREX Newsletter

    

FOREX Newsletter

June 29, 2018

Pulse of the Market

·      The U.S dollar rose against the yen as an absence of any fresh escalation in trade-related tensions

·      U.S gross domestic product grew at a 2.0 percent annual rate in the January-March period

·      German inflation data surpassed the target set by the ECB for the euro zone in June

·      The Canadian dollar strengthened against the greenback, supported by a recent increase in oil prices

The U.S Dollar’s recent run higher against its rivals yesterday was held back by weaker U.S economic data showing the economy expanded at a slower-than-expected rate in the first quarter of the year. The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose by 0.14% to 94.89. U.S. gross domestic product slowed to a 2% annual rate in the January to March period, the Commerce Department said in its final estimate on Thursday, missing economists’ forecast of 2.2%. The U.S. Department of Labor reported that initial jobless claims rose by 9,000 to a seasonally adjusted 227,000 for the week ended June 23. That was well above economists’ estimate for rise to 220,000. A rampant euro, meanwhile, also weighed on upside in the greenback as traders piled into the single currency amid data showing inflation in some German regions was above the ECB’s target rate. EUR/USD bounced from a session low of $1.1527 to trade 0.24% higher at $1.1581. GBP/USD, meanwhile, moved off seven-month lows, and last traded at $1.3089, down 0.19%, as potential Brexit-related headline risks from the European Summit have been limited as the EU’s migrant crisis dominated discussions. Safe-haven currencies struggled to pare back losses from a day earlier as USD/JPY rose 0.08% to Y110.34, while USD/CHF rose 0.04% 0.9975. USD/CAD fell 0.68% to C$1.3250 as oil prices gave up some of their gains, stifling the loonie, amid reports the White House was considering easing its tough stance on nations that import Iranian crude. The shifting perception of July rate hike chances whipsawed the CAD to a one-year low at $1.3386 before it recovered ground.
 

 

Time(GMT)   Economic Release IMP Actual Forecast Prior
01:30 Australia Private Sector Credit (YoY) (MAY) Medium   5.0% 5.1%
05:00 Japan Housing Starts (YoY) (MAY) Medium   -6.2% 0.3%
05:00 Japan Consumer Confidence Index (JUN) Medium   43.8 43.8
06:00 German Retail Sales (YoY) (MAY) Medium   1.8% 1.2%
07:00 Switzerland KOF Leading Indicator (JUN) Medium   99.8 100
07:55 German Unemployment Change (000’s) (JUN) High   -8k -11k
07:55 German Unemployment Claims Rate s.a. (JUN) High   5.2% 5.2%
08:30 U.K Net Consumer Credit (MAY) Medium   1.5b 1.8b
08:30 U.K Gross Domestic Product (YoY) (1Q) Medium   1.2% 1.2%
09:00 Euro-Zone Consumer Price Index Core (YoY) (JUN) High   1.0% 1.1%
12:30 Canada Gross Domestic Product (YoY) (APR) High   2.6% 2.9%
12:30 U.S Personal Spending (MAY) Medium   0.4% 0.6%
12:30 U.S Personal Income (MAY) Medium   0.4% 0.3%
12:30 U.S PCE Core (YoY) (MAY) High   1.9% 1.8%
13:45 U.S Chicago Purchasing Manager (JUN) Medium   60.0 62.7
14:00 U.S U. of Mich. Sentiment (JUN) Medium   99.2 99.3
17:00 Baker Hughes U.S Rig Count (JUN 29) Medium     1052

 

Euro

The single currency gained as rising inflation in some German regions prompted some traders to buy the euro, though rebalancing flows for the half year checked sharp losses. Currencies remained range bound as mixed signals on the trade dispute between Washington and its trading partners kept sentiment subdued.  Overall, the EUR/USD traded with a low of 1.1525 and a high of 1.1599 before closing the day around 1.1569 in the New York session.

 

Yen

The Japanese Yen pair rose in yesterday’s trading session, as an absence of any fresh escalation in trade-related tensions between the United States and its major trading partners capped demand for the Japanese currency. The yen tends to benefit during geopolitical or financial stress as Japan is the world’s biggest creditor nation. Overall, the USD/JPY traded with a low of 109.94 and a high of 110.63 before closing the day around 110.50 in the U.S session.

 

British Pound

The British Pound slumped to its lowest level against the US dollar since November, with pressure mounting on Prime Minister Theresa May over slow Brexit progress as she took part in an EU summit in Brussels. That was the lowest level for the pound in seven months. Mrs. May was facing pressure from her EU counterparts over the slow pace of Brexit negotiations. Overall, the GBP/USD traded with a low of 1.3047 and a high of 1.3121 before closing the day at 1.3078 in the New York session.

 

Canadian Dollar

The Canadian Dollar strengthened against its U.S counterpart yesterday, bolstered by a 3-1/2-year high for oil prices and as investors added to bets for a Bank of Canada interest rate hike next month. Chances of a rate increase at the July 11 announcement have climbed to 65 per cent from less than 50 per cent before a news conference by BOC Governor. Overall, USD/CAD traded with a low of 1.3239 and a high of 1.3349 before closing the day at 1.3251 in the New York session.

 

Australian Dollar

The Australian Dollar gained slightly in yesterday’s trading session as the U.S Dollar yesterday put in a mixed performance against other currencies, in an up-and-down session. Yesterday, the dollar gauge was 0.1% lower at 95.317, stalling after a rally on Wednesday when the White House walked away from harsh measures to curb Chinese investment in the U.S. Overall, AUD/USD traded with a low of 0.7345 and a high of 0.7354 before closing the day at 0.7347 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 also issuing a bearish stance. The Relative Strength Index is above 43 and lies below the neutral zone. In general, the pair has gained 0.32%.

 

 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 35 reading and lies below the neutral zone. On the whole, the pair has lost 0.06%.

 

 Aussie-Yen

 

Currently, the cross is trading below 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 40 reading and lies below the neutral region. In general, the pair has gained 0.40%.

  

Euro-Sterling

This cross is currently trading above 14, 50 and 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 58 and lies above the neutral region. On the whole, the pair has gained 0.38%.

  

Sterling-Swiss

This cross is trading below 14, 50 and 100 days moving average. Fast stochastic is issuing a bearish stance and MACD is indicating a bullish tone. The Relative Strength Index is above 32 and lies below the neutral region. In general, the pair has lost 0.23%.

 

Appendix

  

FOREX Closing Prices for June 28, 2018
Currency Open High Low Close Net Chg
EUR/USD 1.15524 1.15993 1.15258 1.15696 0.0014
USD/JPY 110.217 110.63 109.947 110.507 0.2350
GBP/USD 1.31111 1.31213 1.30477 1.30785 -0.0036
USD/CHF 0.99715 0.99907 0.99579 0.99764 0.0003
USD/CAD 1.3336 1.33491 1.32392 1.32511 -0.0093
EUR/JPY 127.334 127.9 127.123 127.837 0.4130
GBP/JPY 144.526 144.656 143.747 144.525 -0.0830
CHF/JPY 110.519 110.821 110.276 110.791 0.1980
AUD/JPY 80.89 81.269 80.661 81.268 0.3210
EUR/GBP 0.8809 0.88686 0.88066 0.88463 0.0033
EUR/CHF 1.15216 1.15626 1.15112 1.15413 0.0018
GBP/CHF 1.30754 1.30826 1.33029 1.30482 -0.0030

 

 

 

Daily Pivot Points
  Trading Range  
Contract S3 S2 S1 Pivot R1 R2 R3
EUR/USD 1.1457 1.1491 1.1531 1.1565 1.1604 1.1638 1.1678
USD/JPY 109.41 109.68 110.09 110.36 110.78 111.04 111.46
GBP/USD 1.2970 1.3009 1.3044 1.3083 1.3117 1.3156 1.3191
USD/CHF 0.9927 0.9942 0.9959 0.9975 0.9992 1.0008 1.0025
USD/CAD 1.3101 1.3170 1.3211 1.3280 1.3320 1.3390 1.3430
EUR/JPY 126.56 126.84 127.34 127.62 128.12 128.40 128.89
GBP/JPY 143.05 143.40 143.96 144.31 144.87 145.22 145.78
CHF/JPY 109.89 110.08 110.44 110.63 110.98 111.17 111.53
AUD/JPY 80.26 80.46 80.86 81.07 81.47 81.67 82.08
EUR/GBP 0.8750 0.8779 0.8812 0.8841 0.8874 0.8903 0.8936
EUR/CHF 1.1463 1.1487 1.1514 1.1538 1.1566 1.1590 1.1617
GBP/CHF 1.3427 1.3365 1.3207 1.3145 1.2986 1.2924 1.2766

 

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.

 

 

28 Jun 2018

FOREX Newsletter

      

FOREX Newsletter

June 28, 2018

 

     
Pulse of the Market

·      The U.S Dollar rose broadly yesterday, including against the Swiss franc and Japanese yen

·      Sterling weakened as imminent Brexit talks and doubts the BOE will raise interest rates this year

·      The euro fell from the threat of a political crisis in Germany and uncertainty over EU summit

·      Despite easing in trade tensions, the trade-sensitive Australian dollar remained under pressure

 

The U.S dollar rose sharply against its rivals yesterday, as a rout of safe-haven currencies prompted traders to pile into the greenback after the White House softened its stance on restricting foreign investment. The U.S dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose by 0.48% to 94.81. U.S President Donald Trump said he would back Congress’ passage of the Foreign Investment Risk Review Modernization Act (FIRRMA), which would expand the powers of the Committee on Foreign Investment in the United States (CFIUS), helping it combat alleged theft of U.S. intellectual property by China. The decision to back CFIUS not the somewhat harsher International Emergency Economic Powers Act of 1977 – which would have allowed Trump to unilaterally impose restrictions – sparked risk appetite, sending safe-haven currencies like the yen and Swiss franc sharply lower against the greenback. USD/JPY rose 0.25% to Y110.34, while USD/CHF rose 0.50% 0.9962. Mixed U.S. economic data showing an unexpected narrowing of the U.S. trade deficit and weaker durable goods orders did little to curb demand for the dollar. The Commerce Department said yesterday Core Durable Goods Orders fell 0.3% last month, missing economist forecast for a 0.5% rise. The US trade deficit narrowed to $64.85 billion, well below economists’ forecasts of $68.9 billion, from a revised $67.34 billion. The dollar’s move higher was also supported by a slump in both the euro and sterling as the latter was weighed down by Brexit angst, and uncertainty as to whether the Bank of England would hike interest rates this year. USD/CAD rose 0.02% to C$1.3309 as rallying oil prices continued to support the loonie, limiting gains in the currency pair, after the Energy Information Administration’s weekly report showed a massive draw in domestic crude supplies.

 

 

Time(GMT)   Economic Release IMP Actual Forecast Prior
06:00 German GfK Consumer Confidence (JUL) Medium   10.6 10.7
08:00 ECB Publishes Economic Bulletin Medium      
09:00 Euro-Zone Economic Confidence (JUN) Low   112 112.5
09:00 Euro-Zone Consumer Confidence (JUN) Low   -0.5 -0.5
10:00 BOE’s Bailey Speaks on the Future of Payments in London Low      
12:00 German Consumer Price Index (YoY) (JUN) High   2.2% 2.2%
12:30 U.S Initial Jobless Claims (JUN 23) Medium   220k 218k
12:30 U.S Continuing Claims (JUN 16) Medium   1718k 1723k
12:30 U.S Gross Domestic Product Annualized (QoQ) (1Q) High   2.2% 2.2%
12:30 U.S Personal Consumption (1Q) Medium   1.0% 1.0%
12:30 U.S Core PCE (QoQ) (1Q) Medium     2.3%
13:30 BOE Chief Economist Andy Haldane Speaks in London Medium      
22:45 New Zealand Building Permits (MoM) (MAY) Medium     -3.7%
23:01 U.K GfK Consumer Confidence (JUN) Medium   -7 -7
23:30 Japan Jobless Rate (MAY) Medium   2.5% 2.5%

 

Euro

The single currency was under pressure from worries about the trade conflict, the threat of a political crisis in Germany, and uncertainty over a European Union summit dealing with immigration. The U.S. dollar index which measures the greenback against a basket of six currencies was up 0.65 percent at 95.274, on pace for its second day of gains. Overall, the EUR/USD traded with a low of 1.1539 and a high of 1.1670 before closing the day around 1.1555 in the New York session.

 

Yen

The Japanese Yen pair rallied after a moderation in the U.S administration’s approach to Chinese investment. The dollar was up 0.15 percent against the yen at 110.21 yen and advanced 0.64 percent against the franc. The Japanese and Swiss units tend to benefit at the dollar’s expense in times of geopolitical and financial tensions. Overall, the USD/JPY traded with a low of 109.66 and a high of 110.47 before closing the day around 110.27 in the U.S session.

 

British Pound

The British Pound hit lows of $1.31 against the US dollar as investors digested recent dovish comments from MPC member-in-waiting Johnathan Haskel. Investors haven’t had much in the form of significant UK data releases to assess this week, but Sterling has seen some movement as markets reacted to a range of combative statements from the Bank of England (BoE). Overall, the GBP/USD traded with a low of 1.3104 and a high of 1.3231 before closing the day at 1.3114 in the New York session.

 

Canadian Dollar

The Canadian Dollar continues to have an uneventful week. Yesterday Canadian Dollar fell on the release front; the sole Canadian event was a speech from BoC Governor Stephen Poloz. In the U.S, the focus was on durable goods orders. Today, the U.S will publish Final GDP for the first quarter and unemployment claims. Overall, USD/CAD traded with a low of 1.3274 and a high of 1.3384 before closing the day at 1.3344 in the New York session.

 

Australian Dollar

The Australian Dollar continued to edge lower yesterday Despite the slight easing in trade policy tensions, the Australian and New Zealand Dollars, which are dependent on trade with China, remained under pressure. If you look at the broader trade policy backdrop it is still fluid and still uncertain. Overall, AUD/USD traded with a low of 0.7321 and a high of 0.7405 before closing the day at 0.7337 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 also issuing a bearish stance. The Relative Strength Index is above 41 and lies below the neutral zone. In general, the pair has lost 0.57%.

 

 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 35 reading and lies below the neutral zone. On the whole, the pair has gained 0.08%.

 

 

Aussie-Yen

Currently, the cross is trading below 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 37 reading and lies below the neutral region. In general, the pair has lost 0.48%.

 

 Euro-Sterling

 

This cross is currently trading above 14, 50 and 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 54 and lies above the neutral region. On the whole, the pair has gained 0.07%.

  

 Sterling-Swiss

This cross is trading below 14, 50 and 100 days moving average. Fast stochastic is issuing a bearish stance and MACD is indicating a bullish tone. The Relative Strength Index is above 35 and lies below the neutral region. In general, the pair has lost 0.18%.

 

 Appendix

 

FOREX Closing Prices for June 27, 2018
Currency Open High Low Close Net Chg
EUR/USD 1.1645 1.16708 1.15392 1.15559 -0.0090
USD/JPY 110.028 110.471 109.667 110.272 0.2560
GBP/USD 1.32205 1.32319 1.31047 1.31144 -0.0107
USD/CHF 0.99076 0.99746 0.98895 0.99734 0.0069
USD/CAD 1.32991 1.3384 1.32748 1.33445 0.0040
EUR/JPY 128.144 128.322 127.236 127.424 -0.7340
GBP/JPY 110.519 110.634 110.342 110.589 0.0860
CHF/JPY 110.998 111.118 110.494 110.593 -0.4250
AUD/JPY 81.312 81.608 80.722 80.947 -0.3900
EUR/GBP 0.88054 0.88261 0.87952 0.88132 0.0006
EUR/CHF 1.15391 1.15528 1.15074 1.15237 -0.0013
GBP/CHF 1.31037 1.31114 1.30581 1.3078 -0.0023

 

 

 

Daily Pivot Points
  Trading Range  
Contract S3 S2 S1 Pivot R1 R2 R3
EUR/USD 1.1375 1.1457 1.1506 1.1589 1.1638 1.1720 1.1770
USD/JPY 109.00 109.33 109.80 110.14 110.61 110.94 111.41
GBP/USD 1.2942 1.3023 1.3069 1.3150 1.3196 1.3278 1.3323
USD/CHF 0.9832 0.9861 0.9917 0.9946 1.0002 1.0031 1.0087
USD/CAD 1.3176 1.3225 1.3285 1.3334 1.3394 1.3444 1.3503
EUR/JPY 125.91 126.57 127.00 127.66 128.09 128.75 129.17
GBP/JPY 110.12 110.23 110.41 110.52 110.70 110.81 110.99
CHF/JPY 109.73 110.11 110.35 110.74 110.98 111.36 111.60
AUD/JPY 79.69 80.21 80.58 81.09 81.46 81.98 82.35
EUR/GBP 0.8766 0.8781 0.8797 0.8812 0.8828 0.8842 0.8859
EUR/CHF 1.1458 1.1483 1.1503 1.1528 1.1549 1.1573 1.1594
GBP/CHF 1.3000 1.3029 1.3054 1.3083 1.3107 1.3136 1.3160

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.

 

 

28 Jun 2018

Daily Market View

Daily Market View

Thursday, June 28, 2018
          U.S Stock Market

 

DJIA S & P 500 NASDAQ
24144 2706.00 7001.00
-0.68% -0.86% -1.54%

U.S stock index futures slid yesterday on concerns that a worsening U.S-China trade relationship could disrupt businesses and hurt corporate profits. Futures pointed to a 0.4 percent opening loss for the S&P 500, while China’s Shenzhen-listed blue-chip index dropped 2.05 percent, adding to a 20 percent loss from its peak, venturing further into ‘bear territory’. An escalating trade dispute and tit-for-tat tariffs between the two largest economies have roiled global financial markets since early March, with the recent U.S. move to restrict Chinese investments in U.S. technology firms pushing the S&P 500 and NASDAQ on Monday to their biggest percentage declines in over two months. President Donald Trump on Tuesday endorsed a measured approach to limiting Chinese investments, saying a strengthened merger security review committee could protect sensitive American technologies. The rules are set to be unveiled on Friday. China’s commerce ministry said on Wednesday it would assess the potential impact of the action on Chinese companies.

 

 

Major Economic Releases for Today
Period Event GMT Forecast Previous

jul

German GfK Consumer Confidence 06:00 10.6 10.7

 

ECB Publishes Economic Bulletin 08:00    

jun

Euro-Zone Consumer Confidence 09:00 -0.5 -0.5

jun

German Consumer Price Index (YoY) 12:00 2.2% 2.2%

jun

U.S Initial Jobless Claims 12:30 220k 218k

jun

U.S Continuing Claims 12:30 1718k 1723k

1Q

U.S Gross Domestic Product Annualized (QoQ) 12:30 2.2% 2.2%

1Q

U.S Personal Consumption 12:30 1.0% 1.0%

jun

U.K GfK Consumer Confidence 23:01 -7 -7
Dow Jones Industrial Average

The Dow Jones Industrial Average declined 0.68% to hit a new 1-month low yesterday. The best performers of the session on the Dow Jones Industrial Average were General Electric Company, which rose 1.60% or 0.22 points to trade at 13.96 at the close. Meanwhile, Chevron Corp added 1.48% or 1.84 points to end at 126.00 and Exxon Mobil Corp was up 1.33% or 1.07 points to 81.71 in late trade. The worst performers of the session were McDonald’s Corporation, which fell 2.17% or 3.49 points to trade at 157.42 at the close. Intel Corporation declined 1.83% or 0.91 points to end at 48.76 and Nike Inc. was down 1.67% or 1.21 points to 71.35.

 

NASDAQ 100

The tech heavy NASDAQ index fell 1.54% yesterday. The top performers on the NASDAQ Composite were Differential Brands Group Inc. which rose 512.36% to 5.450, Medigus Ltd ADR which was up 27.68% to settle at 1.430 and Spi Energy Co Ltd which gained 19.14% to close at 0.43. The worst performers were Aquinox Pha which was down 84.72% to 2.34 in late trade, Summit Therapeutics PLC which lost 79.84% to settle at 2.55 and Pain Therapeutics Inc. which was down 71.45% to 2.435 at the close.

Oil

Oil prices jumped yesterday as plunging U.S crude stockpiles compounded supply worries in a market already uncertain about Libyan exports, a production disruption in Canada and Washington’s demands that importers stop buying Iranian crude from November. Little spare capacity remains to offset any further production disruptions, said John Kilduff, a partner at Again Capital Management. U.S. crude futures rose $2.23, or 3.16 percent, to settle at $72.76 a barrel. The contract touched $73.06 a barrel, the highest since Nov. 28, 2014. Brent crude rose $1.31, or 1.7 percent, to settle at $77.62 a barrel. U.S crude stocks fell nearly 10 million barrels last week, the most since Sept. 2016, while gasoline and distillate inventories rose less than expected, the Energy Information Administration said. Crude stocks at the Cushing, Oklahoma delivery hub for the NYMEX futures contract fell 2.7 million barrels, EIA said.

 
Precious and Base Metals

Gold prices dipped to a fresh six-month low yesterday as the U.S. dollar strengthened, making bullion more expensive for buyers using other currencies. Platinum also hit its lowest level since February 2016. Gold prices have shed more than 3 percent this month – the biggest monthly loss since September – driven by a dollar rally, a large decline in gold held by exchange-traded funds and a sharp fall in speculative bets. Spot gold declined 0.3 percent at $1,255.17 per ounce, after hitting its lowest since mid-December at $1,252.04. U.S. gold futures for August delivery settled down $3.80, or 0.3 percent, at $1,256.10 per ounce. Platinum lost 0.9 percent to trade at $857.40 per ounce after touching a more than one-year low at $848.50. The main focal point of the day will be the dollar and its pressure on gold. Technical indicators suggest gold will continue to fall, with support at the psychologically-important level of $1,250 then at $1,236.60, gold’s December low. An escalating trade dispute between the United States and China has hit global stock markets, but has so far not triggered demand for gold, usually seen as a safe haven to invest during times of uncertainty. The greenback is near 2018 highs against other currencies, in part due to expectations that the U.S. Federal Reserve will hike interest rates again after raising them in June for the second time this year. Higher rates typically lift the dollar and U.S. bond yields, pressuring gold, which is priced in dollars and does not offer a yield. The head of the Dallas Federal Reserve said the U.S. central bank could raise rates at least twice more before its monetary policy stopped being accommodative, while the chief at the Atlanta Fed said he might rule out a fourth rate hike this year if the U.S.-China trade dispute worsens. A fall in holdings by gold-backed exchange traded funds tracked by Reuters also pressured gold. Meanwhile, spot silver dropped 0.5 percent to $16.17 an ounce, while palladium declined 0.9 percent at $948.40.

 

 

 

Wheat, Corn, and Soybeans

Soybeans edged up yesterday to extend gains into a second session, but concerns about trade tensions between the United States and China kept a lid on prices. The USDA rated 73 percent of the U.S soybean crop in good-to-excellent condition.

 

 

Futures Settlement Price Wednesday, June 27, 2018
Instrument Contract Open High Low Settlement Net Change
DJIA DJM18 24277 24562 24076 24144 -156
S & P 500 SPM18 2726.5 2747.75 2700.75 2706 -22.5
NASDAQ 100 NDM18 7098 7151 6987.75 7001 -103
Hang Seng HSH18 28993 29042 28270 28379 -561
Nikkei 225 NKH18 22285 22335 22185 22245 -85
FTSE 100 FTH18 7488 7573.5 7446 7511.5 11.5
Gold GCJ18 1260 1261.6 1252 1254.1 -6.4
Silver SIK18 1626 1628.5 1593.5 1604.5 -22.5
Copper HGK18 299.6 300.45 296.05 298.1 -1.25
Crude Oil CLK18 70.65 73.02 70.53 72.37 1.73
Wheat WK18 469.75 481.5 468.5 479.5 10
Soybeans SK18 868 877.25 865.5 868 1.25
Corn CK18 352 356 351.25 353 0.75

 

 

Daily Swings  (The Pivot Levels)
  Trading Range  
Contract S3 S2 S1 Pivot R1 R2 R3
DJM18 23473 23775 23959 24261 24445 24747 24931
SPM18 2641.58 2671.17 2688.58 2718.17 2735.58 2765.17 2782.58
NDM18 6778.92 6883.33 6942.17 7046.58 7105.42 7209.83 7268.67
HSH18 27313 27792 28085 28564 28857 29336 29629
NKH18 22025 22105 22175 22255 22325 22405 22475
FTH18 7319.67 7382.83 7447.17 7510.33 7574.67 7637.83 7702.17
GCJ18 1240.60 1246.30 1250.20 1255.90 1259.80 1265.50 1269.40
SIK18 1554.17 1573.83 1589.17 1608.83 1624.17 1643.83 1659.17
HGK18 291.55 293.80 295.95 298.20 300.35 302.60 304.75
CLK18 68.44 69.48 70.93 71.97 73.42 74.46 75.91
WK18 458.50 463.50 471.50 476.50 484.50 489.50 497.50
SK18 851.50 858.50 863.25 870.25 875.00 882.00 886.75
CK18 346.08 348.67 350.83 353.42 355.58 358.17 360.33

  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.

 

 

 

 

 

 

27 Jun 2018

FOREX Newsletter

      

  FOREX Newsletter

  June 27, 2018

  Pulse of the Market

·      Markets regained composure after remarks by White House trade adviser Peter Navarro

·      The Treasury Department is due to announce restrictions on Chinese investment in the U.S by Friday

·      Incoming BOE policymaker Jonathan Haskel said that there may be slacker in the UK economy

·      Trade tensions and NAFTA tape bombs are the fastest growing risks , leaving the loonie sensitive

The U.S Dollar rose to the day’s highs against a currency basket yesterday as market sentiment recovered a day after mounting trade tensions sparked a selloff in risky assets. The U.S dollar index, which measures the greenback’s strength against a basket of six major currencies, was up 0.32% to 94.25 after ending the previous session down 0.24%. The greenback had been pressured lower as long-term U.S. Treasury yields slid amid heightened risk aversion in financial markets. Markets regained composure after remarks by White House trade adviser Peter Navarro Monday helped ease some investor concerns about U.S. trade policy. Navarro indicated that plans to bar Chinese companies from investing in U.S. technology firms won’t be as damaging to the economy as markets are anticipating. The Treasury Department is due to announce restrictions on Chinese investment in the U.S by Friday. Such a move would counter a Chinese initiative to be a global leader in technology and mark another escalation in the trade conflict between Washington and Beijing, following the threat of tit-for-tat tariffs. Besides the trade dispute with China, U.S. President Donald Trump has ratcheted up trade tensions with the European Union by threatening tariffs on cars imported from the bloc. The dollar was still a touch lower against the yen, with USD/JPY last at 109.72, having fallen to a two-week low of 109.36 on Monday. The safe haven yen is often sought by investors in times of geopolitical tensions and market turmoil. The euro fell to the day’s lows, with EUR/USD down 0.38% to 1.1658 after edging up to a two-week high. Sterling was also lower against the firmer dollar, with GBP/USD sliding 0.35%. The pound came under pressure after incoming Bank of England policymaker Jonathan Haskel said that there may be slacker in the UK economy, which would weaken the case for interest rate hikes. He added that the central bank has scope to cut rates slightly lower in case of an economic downturn. The Canadian Dollar is on the verge of another leg down that could see it reach fresh multi-year lows against the US Dollar in the weeks ahead.

 

  
Time(GMT)   Economic Release IMP Actual Forecast Prior
01:00 New Zealand ANZ Activity Outlook (JUN) Medium     13.6
08:30 BOE’s Carney Speaks About Financial Stability Report High      
11:00 U.S MBA Mortgage Applications (JUN 22) Medium     5.1%
12:30 U.S Wholesale Inventories (MoM) (MAY) Medium   0.2% 0.1%
12:30 U.S Advance Goods Trade Balance (MAY) High   -$69.0b -$68.2b
12:30 U.S Durable Goods Orders (MAY) High   -0.9% -1.6%
12:30 U.S Durables Ex Transportation (MAY) Medium   0.5% 0.9%
14:00 U.S Pending Home Sales (YoY) (MAY) Medium     0.4%
14:30 DOE U.S. Crude Oil Inventories (JUN 22) Medium     -5914k
16:15 U.S Fed’s Rosengren Speaks on Ethics and Economics Low      
19:00 Bank of Canada Governor Stephen Poloz Gives Speech in Victoria High      
21:00 RBNZ Official Cash Rate (JUN 28) High   1.75% 1.75%

 

Euro

The single currency ended yesterday’s trading session lower. EU summit that was supposed to be dominated by unity on a common problem has instead turned into discord. As of a month ago, this week’s gathering of EU heads of government in Brussels was set to focus on Brexit. The UK was expected to finally present its plans for the future relationship. Overall, the EUR/USD traded with a low of 1.1633 and a high of 1.1719 before closing the day around 1.1646 in the New York session.

 

Yen

The Japanese Yen pair built on its intraday recovery from two-week lows and is now looking to build on its momentum back above the key 110.00 psychological mark. Against the backdrop of a goodish pickup in the US Dollar demand, a positive opening across the US equity markets weighed on the Japanese Yen’s safe-haven appeal. Overall, the USD/JPY traded with a low of 109.35 and a high of 110.19 before closing the day around 110.01 in the U.S session.

 

British Pound

The British Pound fell after comments by John Haskel, an incoming member of the Monetary Policy Committee of the Bank of England. Haskel was a relatively unknown voice until now, and his dovish commentary and the concerns he voiced for the possible impact on the British economy after the Brexit resulted in a swift sell off for the Pound. Overall, the GBP/USD traded with a low of 1.3190 and a high of 1.3290 before closing the day at 1.3221 in the New York session.

 

Canadian Dollar

The Canadian Dollar continues to have a quiet week. Yesterday North American session, USD/CAD is traded up 0.19% on the day. On the release front, there were no Canadian events until Thursday, so U.S indicators will have an added impact on the movement of USD/CAD. The Bank of Canada has dropped hints that it is ready to raise rates in the second half of 2018. Overall, USD/CAD traded with a low of 1.3278 and a high of 1.3327 before closing the day at 1.3304 in the New York session.

 

Australian Dollar

The Australian Dollar continued to struggle through yesterday as a lack of any meaningful data for release to start of the week hindered any chance of movements higher. The Aussie dollar was dragged down once again by ongoing trade tensions and a drop-in equity prices. Aussie was one of the worst performing currencies of the day. Overall, AUD/USD traded with a low of 0.7378 and a high of 0.7421 before closing the day at 0.7388 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 also issuing a bearish stance. The Relative Strength Index is above 42 and lies below the neutral zone. In general, the pair has lost 0.28%.

 

 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 0.18%.

  

Aussie-Yen

 

 

Currently, the cross is trading below 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 40 reading and lies below the neutral region. In general, the pair has lost 0.08%.

 

 Euro-Sterling

 

 

This cross is currently trading above 14, 50 and 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 53 and lies above the neutral region. On the whole, the pair has lost 0.07%.

 

 Sterling-Swiss

This cross is trading below 14, 50 and 100 days moving average. Fast stochastic is issuing a bearish stance and MACD is indicating a bullish tone. The Relative Strength Index is above 37 and lies below the neutral region. In general, the pair has lost 0.06%.

 

 

Appendix

 

FOREX Closing Prices for June 26, 2018
Currency Open High Low Close Net Chg
EUR/USD 1.17018 1.1719 1.16335 1.16461 -0.0059
USD/JPY 109.751 110.197 109.35 110.016 0.2420
GBP/USD 1.32777 1.32901 1.31906 1.32211 -0.0060
USD/CHF 0.98675 0.99213 0.98565 0.99047 0.0034
USD/CAD 1.32925 1.3327 1.32785 1.33048 0.0006
EUR/JPY 128.46 128.481 127.777 128.158 -0.3550
GBP/JPY 145.752 145.778 144.948 145.503 -0.2690
CHF/JPY 111.182 111.231 110.74 111.018 -0.2230
AUD/JPY 81.339 81.425 80.935 81.337 -0.0650
EUR/GBP 0.88103 0.88207 0.87965 0.88073 -0.0006
EUR/CHF 1.15515 1.15626 1.15226 1.15365 -0.0017
GBP/CHF 1.31045 1.31266 1.30648 1.31014 -0.0008

  

 

Daily Pivot Points
  Trading Range  
Contract S3 S2 S1 Pivot R1 R2 R3
EUR/USD 1.1528 1.1581 1.1613 1.1666 1.1699 1.1752 1.1784
USD/JPY 108.66 109.01 109.51 109.85 110.36 110.70 111.21
GBP/USD 1.3078 1.3134 1.3178 1.3234 1.3277 1.3333 1.3377
USD/CHF 0.9802 0.9829 0.9867 0.9894 0.9932 0.9959 0.9997
USD/CAD 1.3231 1.3255 1.3280 1.3303 1.3328 1.3352 1.3377
EUR/JPY 127.09 127.43 127.80 128.14 128.50 128.84 129.20
GBP/JPY 144.21 144.58 145.04 145.41 145.87 146.24 146.70
CHF/JPY 110.27 110.51 110.76 111.00 111.25 111.49 111.74
AUD/JPY 80.55 80.74 81.04 81.23 81.53 81.72 82.02
EUR/GBP 0.8771 0.8784 0.8796 0.8808 0.8820 0.8832 0.8844
EUR/CHF 1.1479 1.1501 1.1519 1.1541 1.1559 1.1581 1.1599
GBP/CHF 1.3007 1.3036 1.3069 1.3098 1.3130 1.3159 1.3192

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.

 

 

27 Jun 2018

 Daily Market View

 

 

     Daily Market View

   Wednesday, June 27, 2018
          U.S Stock Market

 

DJIA S & P 500 NASDAQ
24300 2728.50 7104.00
+0.12% +0.22% +0.39%

U.S stocks bobbed higher yesterday as technology and consumer-focused companies regained a sliver of their losses from the day before. Oil prices and energy companies jumped as the U.S. pressed its allies to stop importing oil from Iran. Coming off their worst loss since early April, stocks were on track for hefty gains Tuesday afternoon but weakened late in the day. Technology companies like Apple bounced back after abrupt losses on Monday. General Electric led industrial companies higher after it said it would shrink even further by spinning off its health care business and its oil service unit. Banks and other financial companies took losses as bond yields and interest rates remained well off their highs from last month. Household goods makers also slipped. The S&P 500 index gained 5.99 points, or 0.2 percent. It fell 1.4 percent Monday. The Dow Jones Industrial Average gained 30.31 points, or 0.1 percent. The NASDAQ composite added 29.62 points, or 0.4 percent after it plunged 2.1 percent a day ago. In commodities trading, gold lost 0.7 percent to $1,259.90.

 

Major Economic Releases for Today
Period Event GMT Forecast Previous

jun

New Zealand ANZ Activity Outlook 01:00   13.6

 

BOE’s Carney Speaks About Financial Stability Report 08:30    

jun

U.S MBA Mortgage Applications 11:00   5.1%

may

U.S Wholesale Inventories (MoM) 12:30 0.2% 0.1%

may

U.S Advance Goods Trade Balance 12:30 -$69.0b -$68.2b

may

U.S Durable Goods Orders 12:30 -0.9% -1.6%

may

U.S Pending Home Sales (YoY) 14:00   0.4%

jun

DOE U.S. Crude Oil Inventories 14:30   -5914k

 

BOC Governor Stephen Poloz Gives Speech in Victoria 19:00    
Dow Jones Industrial Average

The Dow Jones Industrial Average gained 0.12% yesterday. The best performers of the session on the Dow Jones Industrial Average were General Electric Company, which rose 7.76% or 0.99 points to trade at 13.74 at the close. Meanwhile, Chevron Corp added 1.26% or 1.55 points to end at 124.16 and Apple Inc. was up 1.24% or 2.26 points to 184.43 in late trade. The worst performers of the session were Intel Corporation, which fell 2.05% or 1.04 points to trade at 49.67 at the close. The Travelers Companies Inc. declined 0.89% or 1.10 points to end at 122.62 and Caterpillar Inc. was down 0.76% or 1.04 points to 135.54.

 

 

NASDAQ 100

The tech heavy NASDAQ index gained 0.39% yesterday. The top performers on the NASDAQ Composite were China Lending Corp which rose 145.55% to 4.69, Ascent Capital Group Inc. which was up 44.23% to settle at 3.75 and Sophiris Bio Inc. which gained 34.82% to close at 3.020. The worst performers were Gevo Inc. which was down 23.35% to 7.6500 in late trade, Achaogen Inc. which lost 20.22% to settle at 9.590 and Sellas Life Sciences Group Inc. which was down 18.22% to 3.7700 at the close.

Oil

Crude prices surged by more than 3 percent yesterday after the U.S State Department said it will require companies to cut all oil imports from Iran to zero by November. The announcement exacerbates concerns about a shortage of oil at a time when Venezuela’s production is in terminal decline and the market is grappling with short-term supply disruptions from Canada and Libya. Last week, OPEC and other producers including Russia agreed to raise output to prevent price spikes. U.S. West Texas Intermediate crude futures ended Tuesday’s session up $2.45 a barrel, or 3.6 percent, to $70.53, erasing earlier losses and breaking above $70 for the first time since May 25. Oil prices rose further in late electronic trading after API data showed a large decline in oil inventories of 9.2 million barrels in the latest week. Government supply data is expected today. The U.S is continuing its decision to completely isolate Iran.

 

 

Precious and Base Metals

Gold hit its lowest in over six months yesterday as a selloff in global risk assets eased and the precious metal remained under pressure from the prospect that rising U.S. interest rates will further support the dollar. Modest gains from Europe’s main bourses relieved nervy investors after the latest escalation in an increasingly global trade dispute pummeled Wall Street and sent China into bear market territory. Rising equities tend to weigh on gold, which is widely seen as a safe-haven asset compared with higher-risk stocks. Spot gold dropped 0.6 percent at $1,257.53 per ounce, having hit its weakest since mid-December at $1,254.16. U.S gold futures for August delivery settled down $9, or 0.7 percent, at $1,259.90 per ounce. The dollar rose against its rivals as the escalating concerns of a trade conflict between the world’s two biggest economies pushed markets to unwind their bets in high-yielding currencies. A stronger dollar makes dollar-denominated gold costlier for non-U.S. investors. The dollar has been a lot stronger, that’s the main driver here. Also, gold hasn’t seemed to benefit from the trade turmoil. Gold is being driven by some capitulation in investors, rather than being primarily driven by the dollar. Gold-backed exchange-traded funds tracked by Thomson Reuters were headed for their weakest month since July 2017, as investors covered losses in equities, commodities and other markets caused by tariff disputes. Trade tensions aren’t helping gold at all, there is only one clear trend which is skewed to the downside. Enhancing tensions, U.S. Treasury Secretary Steven Mnuchin said forthcoming investment restrictions from the department will not be specific to China, but would apply “to all countries that are trying to steal our technology. Helping the dollar, Fed Chairman Jerome Powell last week said the U.S. central bank should continue with a gradual pace of interest rate rises. Meanwhile, silver lost 0.3 percent at $16.26 an ounce, slipping to $16.10, its lowest since May 1.

 

 

Wheat, Corn and Soybeans

Wheat futures sagged, with the K.C. hard red winter wheat market hitting its lowest in nearly five months on fund-driven long liquidation and pressure from the harvest in the southern Plains.

 

 

Futures Settlement Price Tuesday, June 26, 2018
Instrument Contract Open High Low Settlement Net Change
DJIA DJM18 24269 24372 24215 24300 19
S & P 500 SPM18 2721.5 2735 2714.75 2728.5 6.25
NASDAQ 100 NDM18 7066.5 7129.5 7040 7104 31
Hang Seng HSH18 28888 29027 28471 28940 -18
Nikkei 225 NKH18 22150 22335 22050 22330 5
FTSE 100 FTH18 7460 7515.5 7446 7500 68
Gold GCJ18 1267.8 1269.1 1256.1 1260.5 -7
Silver SIK18 1632 1634 1613 1627 -7
Copper HGK18 298.4 299.8 297.45 299.35 0.5
Crude Oil CLK18 68.16 70.86 67.7 70.64 2.36
Wheat WK18 478.25 481.5 466.25 469.5 -8
Soybeans SK18 875.75 880.5 862 866.75 -8.25
Corn CK18 350.5 355 347.75 352.25 1

 

 

Daily Swings  (The Pivot Levels)
  Trading Range  
Contract S3 S2 S1 Pivot R1 R2 R3
DJM18 24062 24139 24219 24296 24376 24453 24533
SPM18 2696.92 2705.83 2717.17 2726.08 2737.42 2746.33 2757.67
NDM18 6963.33 7001.67 7052.83 7091.17 7142.33 7180.67 7231.83
HSH18 28042 28257 28598 28813 29154 29369 29710
NKH18 21857 21953 22142 22238 22427 22523 22712
FTH18 7389.33 7417.67 7458.83 7487.17 7528.33 7556.67 7597.83
GCJ18 1241.70 1248.90 1254.70 1261.90 1267.70 1274.90 1280.70
SIK18 1594.33 1603.67 1615.33 1624.67 1636.33 1645.67 1657.33
HGK18 295.58 296.52 297.93 298.87 300.28 301.22 302.63
CLK18 65.45 66.57 68.61 69.73 71.77 72.89 74.93
WK18 448.08 457.17 463.33 472.42 478.58 487.67 493.83
SK18 840.50 851.25 859.00 869.75 877.50 888.25 896.00
CK18 341.08 344.42 348.33 351.67 355.58 358.92 362.83

 

Daily Swings  (The Pivot Levels)
  Trading Range  
Contract S3 S2 S1 Pivot R1 R2 R3

 

 

 

 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.

 

 

26 Jun 2018

FOREX Newsletter

      

FOREX Newsletter

June 26, 2018

 

Pulse of the Market

·      The U.S Dollar fell to two-week lows against the safe-haven yen in yesterday’s trading session

·      A fresh escalation in tensions between the U.S. and its trading partners sparked a flight to safety

·      Euro gained shrugging off Ifo survey data out of Germany that undershot economists’ forecasts

·      The Canadian Dollar was broadly lower yesterday as oil prices gave back some of Friday’s gains

The Greenback pulled back against all of the major currencies except for the loonie. The move had little to do with US data. Instead few positive developments abroad triggered profit-taking on long US dollar positions. Although their recoveries were muted by the beginning of the week losses the best performing currencies last week were the Swiss Franc and the Japanese Yen. The worst performers were the Canadian and New Zealand dollars. There are a number of forces pressuring the US dollar lower from profit taking, the drop in US stocks, and the slide in the US yields to President Trump’s relationship with the rest of the world. The US’ trade war also puts pressure on the markets and the US Supreme Court’s ruling that state sales tax can be collected from online retailers is bad news for stocks. Yet one very strong reason why investors won’t stop buying US dollars is the upward trajectory in US rates. Reports suggesting the U.S. was drawing up plans to block firms with at least 25% Chinese ownership from buying U.S. companies with industry changing technology, sent markets into risk-off mode, prompting a bid in safe haven currencies like the yen and Swiss franc, stifling the greenback. The yen and the Swissy are often sought in times of geopolitical tension or market turbulence because both countries have large current account surpluses. Positive U.S. economic data, showing New Home Sales topped expectations, drew a limited turnaround in risk sentiment. EUR/USD, meanwhile, rose 0.33% to $1.1692 shrugging off Ifo survey data out of Germany that undershot economists’ forecasts. The pound was a touch higher, with GBP/USD edging up 0.11% to 1.3276. The commodity linked currencies were broadly lower as oil prices gave back some of Friday’s strong gains as trade worries weighed. Oil prices had risen on Friday after major oil exporters agreed to a modest increase in production. The Australian dollar was lower in yesterday’s trading session, with AUD/USD down 0.52% to 0.7406. The Aussie had fallen to 13-month lows last week amid fears over the U.S. – China trade spat. The Canadian dollar was also weaker, with USD/CAD climbing 0.32% to 1.3310. The loonie hit a one-year low on Friday amid volatility in oil prices.

 

   

 

 

Time(GMT)   Economic Release IMP Actual Forecast Prior
08:30 U.K BBA Loans for House Purchase (MAY) Medium   38250 38049
10:00 U.K CBI Reported Sales (JUN) Low   11 11
12:00 ECB Vice President De Guindos Speaks in Frankfurt Low      
13:00 S&P CoreLogic CS 20-City (MoM) SA (APR) Medium   0.4% 0.53%
13:00 S&P/Case-Shiller Composite-20 (YoY) (APR) Medium   6.8% 6.79%
13:00 S&P/Case-Shiller US Home Price Index (YoY) (APR) Medium     6.53%
14:00 U.S Richmond Fed Manufact. Index (JUN) Low   15 16
14:00 U.S Consumer Confidence Index (JUN) High   128 128
14:00 U.S Conf. Board Present Situation (JUN) Medium     161.7
14:00 U.S Conf. Board Expectations (JUN) Low     105.6
22:45 New Zealand Trade Balance (MAY) Medium   100m 263m

 

Euro

The single currency continued to hold a choppy range, largely unaffected by sub-forecast Ifo survey data out of Germany. The Ifo dropped to 101.8 from 102.3 in June, with the headline reading in line with Bloomberg consensus. The May number was revised up to 102.3, which means the reading actually improved marginally in the previous month. Overall, the EUR/USD traded with a low of 1.1627 and a high of 1.1711 before closing the day around 1.1705 in the New York session.

 

Yen

The Japanese Yen pair fell yesterday as worries about escalating trade tensions between the U.S and other leading economies kept risk appetite in check. The greenback was down 0.28 percent at 109.65 yen. The yen tends to benefit during geopolitical or financial stress as Japan is the world’s biggest creditor nation.  Overall, the USD/JPY traded with a low of 109.34 and a high of 110.02 before closing the day around 109.77 in the U.S session.

 

British Pound

The British Pound staged its 3rd straight day of gains after a bullish statement by the BOE last week regarding interest rates but some say the big picture, namely the actions surrounding Brexit will keep the currency from sustaining any meaningful rally. The European Union summit due to take place this week is seen as crucial to the pounds direction. Overall, the GBP/USD traded with a low of 1.3219 and a high of 1.3289 before closing the day at 1.3281 in the New York session.

 

Canadian Dollar

The Canadian Dollar weakened against its U.S counterpart yesterday as worries over an escalating trade dispute between the United States and other leading economies weighed on stocks. Canada exports many commodities, including oil, and runs a current account deficit so its economy could also be hurt if the flow of trade or capital slows. Overall, USD/CAD traded with a low of 1.3267 and a high of 1.3322 before closing the day at 1.3298 in the New York session.

 

Australian Dollar

The Australian Dollar has been under pressure this year, losing close to 9% against the greenback since late January. Divergent monetary policy settings between the Reserve Bank of Australia (RBA) and the US Federal Reserve, along with ongoing trade tensions between the United States and its other major trading partners, has weighed on the Aussie despite a solid bounce on Friday. Overall, AUD/USD traded with a low of 0.7394 and a high of 0.7440 before closing the day at 0.7406 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 also issuing a bearish stance. The Relative Strength Index is above 45 and lies below the neutral zone. In general, the pair has gained 0.23%.

 

 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 40 reading and lies below the neutral zone. On the whole, the pair has lost 0.06%.

 

 

Aussie-Yen

Currently, the cross is trading below 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 38 reading and lies below the neutral region. In general, the pair has lost 0.51%.

 

 Euro-Sterling

 

This cross is currently trading above 14, 50 and 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 55 and lies above the neutral region. On the whole, the pair has gained 0.25%.

 

  Sterling-Swiss

This cross is trading below 14, 50 and 100 days moving average. Fast stochastic is issuing a bearish stance and MACD is indicating a bullish tone. The Relative Strength Index is above 38 and lies below the neutral region. In general, the pair has gained 0.08%.

 

 Appendix

  

FOREX Closing Prices for June 25, 2018
Currency Open High Low Close Net Chg
EUR/USD 1.16654 1.17116 1.1627 1.17054 0.0045
USD/JPY 109.903 110.027 109.349 109.774 -0.1970
GBP/USD 1.32671 1.32891 1.32192 1.32812 0.0017
USD/CHF 0.98764 0.98883 0.9854 0.98708 -0.0006
USD/CAD 1.32714 1.33224 1.32679 1.32989 0.0028
EUR/JPY 128.222 128.821 127.262 128.513 0.2970
GBP/JPY 145.829 146.162 144.669 145.772 -0.0850
CHF/JPY 111.246 111.465 110.645 111.241 -0.1210
AUD/JPY 81.74 81.767 80.953 81.402 -0.4200
EUR/GBP 0.87907 0.88173 0.87791 0.88137 0.0022
EUR/CHF 1.15225 1.15551 1.14876 1.15531 0.0038
GBP/CHF 1.3105 1.31887 1.30565 1.31095 0.0010

   

Daily Pivot Points
  Trading Range  
Contract S3 S2 S1 Pivot R1 R2 R3
EUR/USD 1.1566 1.1597 1.1651 1.1681 1.1736 1.1766 1.1820
USD/JPY 108.73 109.04 109.41 109.72 110.08 110.39 110.76
GBP/USD 1.3167 1.3193 1.3237 1.3263 1.3307 1.3333 1.3377
USD/CHF 0.9819 0.9837 0.9854 0.9871 0.9888 0.9905 0.9922
USD/CAD 1.3216 1.3242 1.3270 1.3296 1.3325 1.3351 1.3379
EUR/JPY 126.02 126.64 127.58 128.20 129.14 129.76 130.69
GBP/JPY 143.41 144.04 144.91 145.53 146.40 147.03 147.89
CHF/JPY 109.95 110.30 110.77 111.12 111.59 111.94 112.41
AUD/JPY 80.17 80.56 80.98 81.37 81.80 82.19 82.61
EUR/GBP 0.8751 0.8765 0.8789 0.8803 0.8828 0.8842 0.8866
EUR/CHF 1.1441 1.1464 1.1509 1.1532 1.1576 1.1599 1.1644
GBP/CHF 1.2916 1.2986 1.3048 1.3118 1.3180 1.3250 1.3312

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.

 

 

26 Jun 2018

Daily  Market View

    Daily Market View

  Tuesday, June 26, 2018

 

          U.S Stock Market

 

DJIA S & P 500 NASDAQ
24281 2722.25 7073.00
-1.33% -1.37% -2.09%

U.S stocks plummeted yesterday, with major indexes seeing their biggest one-day drop in months and the Dow set to close below a closely watched level as fresh threats from President Donald Trump against the U.S.’s trading partners undercut investor sentiment. The day’s losses were widespread, with 26 of the Dow’s 30 components trading lower, along with nine of the 11 primary S&P 500 sectors. Tech was the biggest decliner of the day, however, dropping 3% in its biggest one-day decline since March. The Dow Jones Industrial Average tumbled 420 points, or 1.7%. The blue-chip average was on track for its biggest one-day drop since April 6, and the day’s decline put it on track to at its lowest level since May 3. The Dow is also set to end below its 200-day moving average for the first time in about two years. The moving average is a closely watched gauge of an asset’s long-term momentum trends, and while the Dow has dipped below it on an intraday basis two other times in 2018, it rebounded above it both times. Finishing below it could be a sign that more selling is in store.

 

 

Major Economic Releases for Today
Period Event GMT Forecast Previous

may

U.K BBA Loans for House Purchase 08:30 38250 38049

jun

U.K CBI Reported Sales 10:00 11 11

 

ECB Vice President De Guindos Speaks in Frankfurt 12:00

apr

S&P CoreLogic CS 20-City (MoM) SA 13:00 0.4% 0.53%

apr

S&P/Case-Shiller Composite-20 (YoY) 13:00 6.8% 6.79%

apr

S&P/Case-Shiller US Home Price Index (YoY) 13:00 6.53%

jun

U.S Richmond Fed Manufact. Index 14:00 15 16

jun

U.S Consumer Confidence Index 14:00 128 128

jun

U.S Conf. Board Present Situation 14:00 161.7
Dow Jones Industrial Average

The Dow Jones Industrial Average fell 1.33% to hit a new 1-month low yesterday. The best performers of the session on the Dow Jones Industrial Average were Walmart Inc., which rose 1.95% or 1.65 points to trade at 86.47 at the close. Meanwhile, American Express Company added 1.35% or 1.31 points to end at 98.54 and Coca-Cola Company was up 0.76% or 0.33 points to 43.58 in late trade. The worst performers of the session were Intel Corporation, which fell 3.41% or 1.79 points to trade at 50.71 at the close. Visa Inc. declined 3.25% or 4.40 points to end at 130.93 and McDonald’s Corporation was down 2.88% or 4.74 points to 159.81.

 

NASDAQ 100

The NASDAQ index lost 2.09% yesterday. The top performers on the NASDAQ were Xenetic Biosciences Inc. which rose 103.90% to 5.750, Ability Inc. which was up 98.41% to settle at 10.00 and Innovate Biopharmaceuticals Inc. which gained 39.48% to close at 18.76. The worst performers were Merrimack Pharmaceuticals Inc. which was down 43.83% to 5.140 in late trade, Sophiris Bio Inc. which lost 40.27% to settle at 2.240 and Erytech Pharma SA ADR which was down 28.97% to 12.75 at the close.

Oil

Oil fell yesterday as investors prepared for an extra 1 million barrels per day (bpd) of oil to hit the markets after OPEC agreed to raise production and as U.S equity markets slipped on trade war fears. U.S. light crude retreated after an early rise to trade down 41 cents to $68.17 a barrel. Losses in U.S. crude prices were limited by the likelihood that an outage at Syncrude Canada’s 360,000 barrel per day oil sands facility would last through July. The outage is expected to limit crude arriving at Cushing, Oklahoma, delivery point of the U.S. futures contract.  This helped further shrink U.S. crude’s discount to global benchmark Brent to as small as $4.78. The spread had widened to as much as $11.57 on June 1, but had been contracting ahead of OPEC’s expected supply increase, analysts said. The slide on Wall Street pressured oil, analysts said. All three major stock indexes were down on escalating U.S.-China trade tensions.

Precious and Base Metals

Gold hovered near last week’s six-month low yesterday as investors flocked to U.S Treasuries rather than bullion, amid concerns over a global trade war ratcheting higher after a report said the United States plans to bar Chinese companies from investing in its technology firms. Spot gold was down 0.2 percent at $1,266.29 per ounce. U.S. gold futures for August delivery settled down $1.80, or 0.1 percent, at $1,268.90 per ounce. The U.S. Treasury Department is crafting rules that would block firms with at least 25 percent Chinese ownership from buying U.S. companies involved in “industrially significant technology,” The Wall Street Journal reported on Sunday. Gold, which is traditionally seen as a safe haven in times of geopolitical uncertainty, has failed to benefit as investors poured into U.S. Treasury debt. Right now, the flight-to-quality money is going into the bonds. Commodities on a whole are being pulled back with the threat of tariffs. The U.S. Treasury yield curve flattened to its lowest level in over 10 years as concerns about trade wars and divisions within the euro zone boosted demand for longer-dated, safe-haven debt. Higher U.S. bond yields make gold a less attractive investment since it does not bear interest. But some analysts say the standoff between the world’s two largest economies, which threatens to limit global economic growth, could eventually benefit gold. Today on a relative basis, gold is performing better than commodities and equities. Global shares fell on escalating trade tensions and the dollar index turned softer against a basket of currencies. The fundamental dynamics suggest gold will remain under pressure until there is a discernible reversal in dollar sentiment. We are seeing some support lining up at the $1,265 level, with upward momentum capped at the $1,278 area. Meanwhile, silver fell 0.8 percent at $16.31 an ounce. Copper prices fell to the lowest close in almost three months as tension between the U.S. and China continued to unsettle investors.

 

 

Wheat, Corn, and Soybeans

Wheat slid 2 percent yesterday as rain expected in parched growing belts in Australia tempered concerns about global supply risks and shifted attention to broader worries about trade tensions.

 

 

 

 

Futures Settlement Price Monday, June 25, 2018
Instrument Contract Open High Low Settlement Net Change
DJIA DJM18 24595 24612 24075 24281 -326
S & P 500 SPM18 2756.75 2757.75 2700.5 2722.25 -37.75
NASDAQ 100 NDM18 7222 7222.25 6995.25 7073 -151
Hang Seng HSH18 29410 29447 28860 28958 -388
Nikkei 225 NKH18 22475 22520 22260 22325 -145
FTSE 100 FTH18 7576 7599.5 7420 7432 -172
Gold GCJ18 1272.2 1273.2 1265.6 1267.5 -3.5
Silver SIK18 1640.5 1643 1627.5 1634 -14
Copper HGK18 303.55 304.45 296.8 298.85 -4.3
Crude Oil CLK18 68.62 69.4 67.75 68.28 -0.37
Wheat WK18 486.75 487.75 473.25 477.5 -14
Soybeans SK18 894.5 896 871.25 875 -20
Corn CK18 357.75 358.5 349.25 351.25 -6.75

 

 

 

 

                                              Daily Swings  (The Pivot Levels)
  Trading Range  
Contract S3 S2 S1 Pivot R1 R2 R3

 

DJM18 23496 23786 24033 24323 24570 24860 25107
SPM18 2638.67 2669.58 2695.92 2726.83 2753.17 2784.08 2810.42
NDM18 6744.42 6869.83 6971.42 7096.83 7198.42 7323.83 7425.42
HSH18 28143 28501 28730 29088 29317 29675 29904
NKH18 21957 22108 22217 22368 22477 22628 22737
FTH18 7188.67 7304.33 7368.17 7483.83 7547.67 7663.33 7727.17
GCJ18 1256.73 1261.17 1264.33 1268.77 1271.93 1276.37 1279.53
SIK18 1611.17 1619.33 1626.67 1634.83 1642.17 1650.33 1657.67
HGK18 287.97 292.38 295.62 300.03 303.27 307.68 310.92
CLK18 65.90 66.83 67.55 68.48 69.20 70.13 70.85
WK18 456.75 465.00 471.25 479.50 485.75 494.00 500.25
SK18 840.75 856.00 865.50 880.75 890.25 905.50 915.00
CK18 338.25 343.75 347.50 353.00 356.75 362.25 366.00

 

  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.

 

 

 

 

 

 

25 Jun 2018

FOREX Newsletter

     

    FOREX Newsletter

  June 25, 2018

 

   Pulse of the Market

·      On Friday, U.S President Trump threatened to impose a 20% tariff on car imports from the EU

·      The Euro rose buoyed by data showing that second-quarter growth is likely to have been solid

·      The Pound rose to one-week highs after BOE revived expectations for an August rate hike

·      Chances of a Bank of Canada hike at the July 11 announcement fell to 54 percent from 70 percent

 

U.S inflation data will be in focus this week with the Federal Reserve has already flagged four interest rate hikes this year. The Fed’s preferred inflation measure; the core PCE price index is due on Friday. The third reading on first quarter U.S. GDP is due the day before and there will also be data on durable goods orders and consumer sentiment. The euro zone is to release a preliminary inflation estimate on Friday, while EU leaders are to hold a two-day summit in Brussels, which gets underway on Thursday. The euro rose on Friday, buoyed by data showing that second quarter growth is likely to have been solid and by fresh assurances from Italy’s new government that the country would not leave the euro area. The single currency received an additional boost after Greece secured debt relief and a cash infusion from the euro zone. EUR/USD was up 0.44% to 1.1654 in late trade, for a weekly gain of 0.39%. The gains in the euro pressured the dollar lower. The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was down 0.37% at 94.19 late Friday. For the week, the index was down 0.63%. Despite its gains, the euro still remains vulnerable to political instability in the euro area and ongoing trade tensions. On Friday, U.S. President Donald Trump threatened to impose a 20% tariff on car imports from the EU. Trump’s threat came after the EU imposed tariffs on a range of U.S. imports in response to steel and aluminum tariffs from the White House. The dollar was almost unchanged against the yen late Friday, with USD/JPY at 109.96. For the week, the pair was down 0.61%. The pound rose to one-week highs on Friday, a day after a more hawkish Bank of England revived expectations for an August rate hike, but fears over a fresh period of uncertainty in Brexit negotiations checked gains. GBP/USD hit a high of 1.3315 before pulling back to 1.3263 in late trade. Elsewhere, the commodity-linked currencies strengthened on Friday following a modest increase in oil production by OPEC.  The Australian dollar bounced higher, with AUD/USD rising 0.92% to 0.7445, rebounding from the previous session’s 13-month lows of 0.7344. The Canadian dollar steadied against its U.S. counterpart on Friday after hitting an earlier one-year low, as investors pared bets on a Bank of Canada interest hike next month after weaker-than-expected domestic inflation and retail sales data. Canada’s annual inflation rate stayed unchanged at 2.2 percent in May, Statistics Canada data indicated, less than the 2.5 percent forecast by analysts.

 

Time(GMT)   Economic Release IMP Actual Forecast Prior
05:00 Japan Leading Index CI (APR) Low     105.6
05:00 Japan Coincident Index (APR) Low     117.7
08:00 German IFO Business Climate (JUN) Medium     102.2
08:00 German IFO Expectations (JUN) Medium     98.5
08:00 German IFO Current Assessment (JUN) Medium     106
12:30 U.S Chicago Fed Nat Activity Index (MAY) Low     0.34
14:00 U.S New Home Sales (MoM) (MAY) Medium   0.5% -1.5%
14:30 U.S Dallas Fed Manufacturing Activity (JUN) Low     26.8

 

Euro

The single currency had a very bullish session on Friday, breaking above the 1.16 level significantly, and it looks as if the market continues to trying to recover from the mass selloff that we have seen after the ECB suggested that it was at least a year away from hiking interest rates. The market should continue to be driven by several different factors. Overall, the EUR/USD traded with a low of 1.1599 and a high of 1.1673 before closing the day around 1.1660 in the New York session.

 

Yen

The Japanese Yen held its gains versus a basket of currencies, as another weekly drop in U.S jobless claims was offset by a surprise fall in the Philadelphia Federal Reserve’s index on U.S Mid-Atlantic business activity. An index that gauges the greenback against the euro, yen, sterling and three other currencies was up 0.08 percent at 95.129.  Overall, the USD/JPY traded with a low of 109.78 and a high of 110.19 before closing the day around 109.97 in the U.S session.

 

British Pound

The British Pound rallied quite nicely against the US dollar during the day on Friday, breaking above the 1.3250 level. By making a fresh, new high, it is a good sign, but at this point there is a significant amount of resistance above as well. Ultimately, we have a lot of work to do if we are going to turn things around. Overall, the GBP/USD traded with a low of 1.3237 and a high of 1.3313 before closing the day at 1.3263 in the New York session.

 

Canadian Dollar

The Canadian Dollar held on to its positive tone, albeit seemed lacking any strong follow-through buying interest, however, price action remains supportive of positive momentum in US dollar’s favor. US Dollar Index is trading near one-year’s high in the 95.00 area. The downside remained cushioned amid a weaker tone surrounding crude oil prices. Overall, USD/CAD traded with a low of 1.3260 and a high of 1.3380 before closing the day at 1.3270 in the New York session.

 

Australian Dollar

The Australian Dollar has rallied rather significantly against the US dollar during trading on Friday, slicing above the 0.74 level. The Australian dollar is showing more resiliency than many other currencies, so it’ll be interesting to see how far this can run. Overall, I think short-term buyers will run the show, but eventually, bearishness will return. Overall, AUD/USD traded with a low of 0.7371 and a high of 0.7441 before closing the day at 0.7441 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 also issuing a bearish stance. The Relative Strength Index is above 45 and lies below the neutral zone. In general, the pair has gained 0.46%.

 

 

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 0.19%.

 

 

Aussie-Yen

 

Currently, the cross is trading below 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 43 reading and lies below the neutral region. In general, the pair has gained 0.87%.

 

  

Euro-Sterling

 

This cross is currently trading above 14, 50 and 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 52 and lies above the neutral region. On the whole, the pair has gained 0.37%.

 

  

 

Sterling-Swiss

 

This cross is trading below 14, 50 and 100 days moving average. Fast stochastic is issuing a bearish stance and MACD is indicating a bullish tone. The Relative Strength Index is above 36 and lies below the neutral region. In general, the pair has lost 0.25%.

 

 

 

 

 Appendix

 

FOREX Closing Prices for June 22, 2018
Currency Open High Low Close Net Chg
EUR/USD 1.16019 1.16736 1.15992 1.16603 0.0058
USD/JPY 109.967 110.199 109.783 109.971 0.0040
GBP/USD 1.32393 1.33131 1.32374 1.32639 0.0023
USD/CHF 0.99155 0.99236 0.98715 0.98766 -0.0040
USD/CAD 1.3314 1.338 1.32605 1.32706 -0.0042
EUR/JPY 127.612 128.582 127.479 128.216 0.5870
GBP/JPY 145.646 146.624 145.464 145.857 0.2830
CHF/JPY 110.886 111.397 110.769 111.362 0.5100
AUD/JPY 81.106 81.9 80.988 81.822 0.7040
EUR/GBP 0.87586 0.88035 0.87499 0.87918 0.0033
EUR/CHF 1.15064 1.15485 1.14962 1.15156 0.0009
GBP/CHF 1.31292 1.31751 1.30832 1.30991 -0.0033

 

 

 

Daily Pivot Points
  Trading Range  
Contract S3 S2 S1 Pivot R1 R2 R3
EUR/USD 1.1541 1.1570 1.1615 1.1644 1.1690 1.1719 1.1764
USD/JPY 109.35 109.57 109.77 109.98 110.19 110.40 110.60
GBP/USD 1.3154 1.3196 1.3230 1.3271 1.3306 1.3347 1.3381
USD/CHF 0.9805 0.9838 0.9858 0.9891 0.9910 0.9943 0.9962
USD/CAD 1.3108 1.3184 1.3227 1.3304 1.3347 1.3423 1.3466
EUR/JPY 126.50 126.99 127.60 128.09 128.71 129.20 129.81
GBP/JPY 144.18 144.82 145.34 145.98 146.50 147.14 147.66
CHF/JPY 110.33 110.55 110.96 111.18 111.58 111.80 112.21
AUD/JPY 80.33 80.66 81.24 81.57 82.15 82.48 83.06
EUR/GBP 0.8706 0.8728 0.8760 0.8782 0.8814 0.8835 0.8867
EUR/CHF 1.1439 1.1468 1.1492 1.1520 1.1544 1.1572 1.1596
GBP/CHF 1.2971 1.3027 1.3063 1.3119 1.3155 1.3211 1.3247

 

 

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.

 

 

25 Jun 2018

 Daily  Market View

    Daily  Market View

  Monday, June 25, 2018
          U.S Stock Market

 

DJIA S & P 500 NASDAQ
24607 2760.00 7224.00
+0.49% +0.19% -0.26%

U.S stocks rose on Friday with the Dow Jones Industrial Average looking to snap its 8-day losing streak, powered by a surge in oil prices, but losses in technology stocks curbed some gains. The benchmark Brent crude jumped $1.83 to $74.88 a barrel, following three days of losses, after OPEC agreed to modest crude output increases to compensate for losses in production at a time of rising global demand. A recent rally in oil prices due to an OPEC decision to restrict supply in an effort to drain global inventories has helped S&P energy be the best performing S&P sector in the last three months. U.S President Donald Trump, in his latest move, threatened to impose a 20 percent tariff on all European Union car imports, a month after the administration launched a probe into whether auto imports pose a threat to national security. The gains were broad-based with 10 of the 11 main S&P sectors higher. The technology sector was the only one in the red, down 0.3 percent. Leading the decliners among tech was open source software provider Red Hat Inc, which slumped 11.9 percent.

 

 

 

Major Economic Releases for Today
Period Event GMT Forecast Previous

apr

Japan Leading Index CI 05:00   105.6

apr

Japan Coincident Index 05:00   117.7

jun

German IFO Business Climate 08:00   102.2

jun

German IFO Expectations 08:00   98.5

jun

German IFO Current Assessment 08:00   106

may

U.S Chicago Fed Nat Activity Index 12:30   0.34

may

U.S New Home Sales (MoM) 14:00 0.5% -1.5%

jun

U.S Dallas Fed Manufacturing Activity 14:30   26.8

may

Japan Corporate Service Price (YoY) 23:50   0.9%
Dow Jones Industrial Average

The Dow Jones Industrial Average added 0.49% on Friday. The biggest gainers of the session on the Dow Jones Industrial Average were Dow DuPont Inc., which rose 2.63% or 1.72 points to trade at 67.00 at the close. McDonald’s Corporation added 2.50% or 4.02 points to end at 164.55 and Verizon Communications Inc. was up 2.32% or 1.13 points to 49.76 in late trade. Biggest losers included JPMorgan Chase & Co, which lost 1.64% or 1.76 points to trade at 105.75 in late trade. Home Depot Inc. declined 1.45% or 2.90 points to end at 197.41 and Microsoft Corporation shed 0.72% or 0.73 points to 100.41.

NASDAQ 100

The tech-heavy NASDAQ index fell 0.26% on Friday. The top performers on the NASDAQ Composite were Apollo Medical Holdings Inc. which rose 50.60% to 30.00, Restoration Robotics Inc. which was up 33.33% to settle at 3.64 and Soleno Therapeutics Inc. which gained 33.05% to close at 3.100. The worst performers were Inpixon which was down 33.07% to 0.1941 in late trade, Research Frontiers Incorporated which lost 27.44% to settle at 0.595 and Xenetic Biosciences Inc. which was down 21.67% to 2.820 at the close.

Oil

Oil prices soared on Friday after oil producers agreed to modest crude output increases to compensate for losses in production at a time of rising global demand. The OPEC and other top crude producers, meeting in Vienna, agreed to raise output from July by about 1 million barrels per day (bpd). The real increase, however, will be around 770,000 bpd, according to Iraq, because several countries that recently suffered production declines will struggle to reach full quotas, while other producers may not be able to fill the gap. The actual output increases set a bullish tone, as they came in below some of the highest figures that had been discussed prior to the meeting. U.S. crude rose $3.04, or 4.6 percent, to $68.58 a barrel, getting an additional boost after a surprisingly large drawdown at the storage hub at Cushing, Oklahoma. For about three weeks ahead of the OPEC meeting, prices had retreated from 3-1/2-year highs.

Precious and Base Metals

Gold prices rose from six-month lows on Friday as the dollar slipped, but the modest nature of the recovery suggested speculators might still be poised to punish the metal further. Spot gold gained 0.2 percent at $1,268.76 per ounce, headed for a 0.8 percent weekly drop. In the prior session, bullion touched $1,260.84, its lowest since Dec. 19, 2017. U.S gold futures for August delivery settled up 20 cents, 0.02 percent, at $1,270.70 per ounce. Gold is up with the dollar being a little weak. A weaker greenback makes dollar-denominated gold cheaper for holders of other currencies. Subdued gold reaction shows there’s more downside risk. People think since gold failed at the $1,300 level, they are seeing how far they can push it down and then move it up again. I would say it should bottom out anywhere between $1,250 and $1,200. Gold tumbled last Friday after repeatedly failing to surmount the $1,300 level as speculators rushed to liquidate long positions and others added bearish positions. The dollar dropped from an 11-month peak against a currency basket as the euro strengthened after a survey showed Euro zone private business growth recovered in June. Commerzbank agreed gold was unlikely to recover in the near-term. If gold is not even in demand as a result of the escalating trade dispute between the U.S. and China, we do not believe that the other upcoming events will do much to sway the opinion of market participants. In Asia, gold demand picked up in most centers this week, with bullion selling at a premium in India for the first time in seven weeks. Platinum increased 1 percent at $870.24 per ounce, poised for a weekly drop of over 1 percent. Silver was up 0.8 percent at $16.44 an ounce after falling to its lowest since May 2 at $16.16 in the previous session, headed for a 0.3 percent weekly drop.

Wheat, Corn , and Soybeans

Soybean and corn futures posted losses for the fourth straight week on worries about the escalating trade dispute between the U.S and China, although prices rose for the day on Friday as some traders covered short positions. Soybeans ended 1.2 per cent lower on the week, after plunging to their lowest price in nearly a decade on Tuesday.

 

 

Futures Settlement Price Friday, June 22, 2018
Instrument Contract Open High Low Settlement Net Change
DJIA DJM18 24454 24662 24443 24607 140
S & P 500 SPM18 2750.25 2768.25 2749 2760 8
NASDAQ 100 NDM18 7225.5 7273.75 7198.25 7224 -12.5
Hang Seng HSH18 29042 29422 29041 29346 49
Nikkei 225 NKH18 22370 22485 22360 22470 -125
FTSE 100 FTH18 7502 7631 7496.5 7604 120.5
Gold GCJ18 1269.4 1272.7 1268.2 1271 2.2
Silver SIK18 1631 1648 1630 1648 18
Copper HGK18 302.7 304.5 301.3 303.15 0.35
Crude Oil CLK18 65.89 68.78 65.69 68.65 2.89
Wheat WK18 496.5 497 486.75 491.5 -3.5
Soybeans SK18 882.5 895.75 879.75 895 15.25
Corn CK18 358 359.25 354.75 358 1

 

 

Daily Swings  (The Pivot Levels)
  Trading Range  
Contract S3 S2 S1 Pivot R1 R2 R3

 

DJM18 24260 24352 24479 24571 24698 24790 24917
SPM18 2730.67 2739.83 2749.92 2759.08 2769.17 2778.33 2788.42
NDM18 7114.75 7156.50 7190.25 7232.00 7265.75 7307.50 7341.25
HSH18 28736 28889 29117 29270 29498 29651 29879
NKH18 22267 22313 22392 22438 22517 22563 22642
FTH18 7388.83 7442.67 7523.33 7577.17 7657.83 7711.67 7792.33
GCJ18 1264.07 1266.13 1268.57 1270.63 1273.07 1275.13 1277.57
SIK18 1618.00 1624.00 1636.00 1642.00 1654.00 1660.00 1672.00
HGK18 298.27 299.78 301.47 302.98 304.67 306.18 307.87
CLK18 63.54 64.62 66.63 67.71 69.72 70.80 72.81
WK18 476.25 481.50 486.50 491.75 496.75 502.00 507.00
SK18 868.58 874.17 884.58 890.17 900.58 906.17 916.58
CK18 350.92 352.83 355.42 357.33 359.92 361.83 364.42

 

 

 Source: – News & Quotes (Courtesy:  Reuters)                                                                    

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