21 Jun 2018

Daily  Market View

Daily  Market View

Thursday, June 21, 2018

 

         

 U.S Stock Market

 

DJIA S & P 500 NASDAQ
24667 2771.50 7312.00
+0.01% +0.31% +0.85%

U.S stocks stabilized yesterday after escalating worries about U.S.-China trade relations triggered a selloff in the previous session. Investors this week have been more seriously considering the chance that the world’s two largest economies could embark on a growth-hindering trade war, although many still expect the two countries to ultimately dial down their plans. Stocks, commodities and bond yields fell Tuesday after President Donald Trump called for his administration to identify $200 billion in Chinese goods for a fresh round of tariffs. The Dow Jones Industrial Average was recently up 7 points, or less than 0.1% after entering the day on a six-session losing streak—its longest since March 2017. The S&P 500 was up 0.4%, and the tech-heavy NASDAQ rose 1%. Some investors aren’t sure that trade tensions will escalate, and major indexes have tended to stabilize following initial drops as the trade fights have escalated. Despite recent trade fears and anxiety about higher interest rates, some investors think steady earnings growth will boost stocks moving forward.

 

Major Economic Releases for Today
Period Event GMT Forecast Previous

jun

SNB Sight Deposit Interest Rate 07:30 -0.75% -0.75%

jun

SNB 3-Month Libor Upper Target Range 07:30 -0.25% -0.25%

jun

Bank of England Bank Rate 11:00 0.50% 0.50%

jun

BOE Asset Purchase Target 11:00 435b 435b

jun

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

jun

U.S Philadelphia Fed Business Outlook 12:30 29.0 34.4

apr

U.S House Price Index (MoM) 13:00 0.5% 0.1%

jun

Euro-Zone Consumer Confidence 14:00 0.0 0.2

 

BOE Governor Mark Carney Delivers Mansion House Speech 20:15
Dow Jones Industrial Average

The Dow Jones Industrial Average declined 0.17%. The best performers of the session on the Dow Jones Industrial Average were Microsoft Corporation, which rose 1.00% or 1.01 points to trade at 101.87 at the close. Meanwhile, Intel Corporation added 1.04% or 0.55 points to end at 53.48 and Walt Disney Company was up 0.99% or 1.05 points to 107.15 in late trade. The worst performers of the session were The Travelers Companies Inc., which fell 2.47% or 3.17 points to trade at 124.99 at the close. McDonald’s Corporation declined 1.46% or 2.41 points to end at 162.56 and International Business Machines was down 0.88% or 1.27 points to 142.63.

NASDAQ 100

The NASDAQ index climbed 0.72%. The top performers on the NASDAQ Composite were Naked Brand Group Inc. which rose 434.59% to 8.500, CLPS Inc. which was up 55.67% to settle at 16.75 and Forward Industries Inc. which gained 54.93% to close at 2.200. The worst performers were Anika Therapeutics Inc. which was down 37.62% to 28.77 in late trade, Gevo Inc. which lost 37.13% to settle at 12.2600 and Helios and Matheson Analytics Inc. which was down 30.65% to 0.312 at the close.

Oil

Prices for U.S benchmark oil futures settled with a gain yesterday, at a nearly one-week high, after U.S government data revealed the biggest weekly decline in U.S crude supplies since January. Global benchmark Brent crude prices, however, finished lower as traders monitored comments from major oil producers gathering for the much-anticipated Organization of the Petroleum Exporting Countries meeting at the end of the week. July West Texas Intermediate crude which expired at the end of the trading session, added $1.15, or 1.8%, to settle at $66.22 a barrel on the New York Mercantile Exchange, the highest finish for the contract since June 14. August WTI crude which is now the front-month contract, tacked on 81 cents, or nearly 1.3%, to $65.71. The U.S EIA reported yesterday that crude supplies dropped by 5.9 million barrels for the week ended June 15, while the API on Tuesday reported a decline of 3 million barrels.

 

Precious and Base Metals

Gold prices dropped, remaining near a six-month low yesterday as the U.S. dollar hovered around 11 month peaks but was offset by festering global trade tensions, while platinum hit a 2-1/2-year trough. Rising U.S. interest rates also pressured bullion. Spot gold lost 0.2 percent at $1,272.44. U.S. gold futures for August delivery settled down $4.10, or 0.3 percent, at $1,274.50 per ounce. Trade tensions between the United States and China are showing no signs of easing. On Tuesday, a White House trade adviser said Beijing had underestimated the U.S. president’s resolve to impose more tariffs.  That followed Washington threatening to impose tariffs on $200 billion of Chinese goods and Beijing saying it was raising tariffs on $50 billion of U.S goods. Gold, seen as a safe haven asset, usually gains from geopolitical or economic tensions but has struggled this time around because the dollar has risen strongly, making dollar-priced gold costlier for non-U.S. investors. This environment we’ve had with interest higher rates and a higher U.S. dollar has kind of halted the rise of gold at least for the short term. Higher U.S. interest rates make gold a less attractive investment since it does not bear interest. However, the reason it hasn’t fallen as much as you’d expect is that safe-haven demand has sustained the price. The U.S. dollar was little changed, hovering near an 11-month peak against a basket of major currencies as China’s signal of a tolerance of a stronger yuan offset anxiety about the global trade conflict. World markets recovered from a recent selloff on the trade tensions, while Treasury yields rose after the Federal Reserve chairman said the U.S. central bank should continue with a gradual pace of interest rate increases. Fed Chairman Jerome Powell said the pace should stay the same given that the labor market does not seem to be overly tight. Silver gained 0.3 percent at $16.31 an ounce.

Wheat, Corn, and Soybeans

Soybean futures lost ground for a second day yesterday after hitting their lowest in almost a decade in the last session with prices pressured by escalating U.S.-China trade war. Corn slid for a sixth session, while wheat was unmoved after dropping to its lowest since late April on Tuesday.

 

 

Futures Settlement Price Wednesday, June 20, 2018
Instrument Contract Open High Low Settlement Net Change
DJIA DJM18 24717 24856 24629 24667 -53
S & P 500 SPM18 2765.25 2778.25 2757 2771.5 5
NASDAQ 100 NDM18 7254.25 7335.75 7226.5 7312 59
Hang Seng HSH18 29473 29964 29339 29662 290
Nikkei 225 NKH18 22245 22530 22115 22455 250
FTSE 100 FTH18 7584.5 7636.5 7556 7573.5 3.5
Gold GCJ18 1277.3 1278.3 1269.4 1269.6 -7.6
Silver SIK18 1630 1635.5 1624 1626.5 -5.5
Copper HGK18 303.45 306.65 302.05 303.9 -0.4
Crude Oil CLK18 64.9 66.32 64.76 65.3 0.33
Wheat WK18 478.5 489.5 474.5 487 7
Soybeans SK18 894.25 895.25 876.5 888.25 -1.75
Corn CK18 354.25 356.75 347.25 353.5 -1.25

 

 

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

 

DJM18 24352 24490 24579 24717 24806 24944 25033
SPM18 2738.33 2747.67 2759.58 2768.92 2780.83 2790.17 2802.08
NDM18 7137.83 7182.17 7247.08 7291.42 7356.33 7400.67 7465.58
HSH18 28721 29030 29346 29655 29971 30280 30596
NKH18 21788 21952 22203 22367 22618 22782 23033
FTH18 7460.33 7508.17 7540.83 7588.67 7621.33 7669.17 7701.83
GCJ18 1257.67 1263.53 1266.57 1272.43 1275.47 1281.33 1284.37
SIK18 1610.33 1617.17 1621.83 1628.67 1633.33 1640.17 1644.83
HGK18 297.15 299.60 301.75 304.20 306.35 308.80 310.95
CLK18 63.04 63.90 64.60 65.46 66.16 67.02 67.72
WK18 462.83 468.67 477.83 483.67 492.83 498.67 507.83
SK18 859.33 867.92 878.08 886.67 896.83 905.42 915.58
CK18 338.75 343.00 348.25 352.50 357.75 362.00 367.25

 

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.

 

 

 

 

 

 

21 Jun 2018

FOREX Newsletter

      

  FOREX Newsletter

   June 21, 2018

 

 

Pulse of the Market

·      The U.S Dollar saw muted action yesterday, as major currency trading calms somewhat

·      Fears of a trade war between China and the U.S. sparked fresh haven-currency buying

·      In focus for currency investors was the European Central Bank’s forum in Sintra, Portugal

·      The Canadian Dollar steadied against its U.S counterpart yesterday as oil prices rose

 

The U.S Dollar was little changed on Wednesday, hovering near an 11-month peak against a basket of major currencies as China’s signal of a tolerance of a stronger Yuan offset anxiety about the global trade conflict. The greenback, as well as the yen and Swiss franc, remained well supported as traders braced for possibly another round of tariffs. The market is holding its breath on what is the next development. Before Wednesday’s market open, the People’s Bank of China cut the yuan’s midpoint rate to 6.4586 per dollar, the weakest level since Jan. 12 and much stronger than market models had suggested. The move is seen as a bid to stabilize investor sentiment and avert the yuan from sagging further. Yesterday, the Chinese currency fell a five-month low of 6.4948 yuan in the offshore market following U.S. President Donald Trump’s threat of a 10 percent tariff on $200 billion of Chinese imports. U.S. Commerce Secretary Wilbur Ross said the White House will likely keep up pressure on Beijing in an attempt to reach a deal on greater American access to Chinese markets and narrow its trade surplus with the United States. In this climate of rising trade tensions, heads of major central banks spoke of this risk in their economic outlook at a conference in Sintra, Portugal. U.S. Federal Reserve President Jerome Powell said “in principle changes in trade policy could cause us to have to question the outlook. Still Powell and his peers at the European Central Bank and Bank of Japan, Mario Draghi and Haruhiko Kuroda, offered no fresh views on their policy stance. The greenback was steady against the Japanese currency at 110.11 yen. Many emerging currencies steadied after yesterday’s losses due to trade fears. The Canadian dollar steadied against its U.S. counterpart yesterday as oil prices rose but the currency held near its weakest level in nearly one year amid uncertainty about the outlook for global trade.

 

 

Time(GMT)   Economic Release IMP Actual Forecast Prior
01:30 RBA Foreign Exchange Transaction (Australian dollar) (MAY) Low     A$538m
05:00 Japan Supermarket Sales (YoY) (MAY) Low     -1.2%
07:30 SNB Sight Deposit Interest Rate (JUN 21) High   -0.75% -0.75%
07:30 SNB 3-Month Libor Lower Target Range (JUN 21) High   -1.25% -1.25%
07:30 SNB 3-Month Libor Upper Target Range (JUN 21) High   -0.25% -0.25%
08:30 U.K Public Finances (PSNCR) (Pounds) (MAY) Medium     -9.7b
08:30 U.K Central Government NCR (MAY) Medium     -6.1b
08:30 U.K Public Sector Net Borrowing (MAY) Medium   5.0b 6.2b
11:00 Bank of England Bank Rate (JUN 21) High   0.50% 0.50%
11:00 BOE Asset Purchase Target (JUN) High   435b 435b
12:30 U.S Initial Jobless Claims (JUN 16) Medium   220k 218k
12:30 U.S Philadelphia Fed Business Outlook (JUN) Medium   29.0 34.4
13:00 U.S House Price Index (MoM) (APR) Medium   0.5% 0.1%
14:00 U.S Leading Index (MAY) Medium   0.4% 0.4%
14:00 Euro-Zone Consumer Confidence (JUN A) Medium   0.0 0.2
20:15 BOE Governor Mark Carney Delivers Mansion House Speech High      
23:30 Japan National Consumer Price Index (YoY) (MAY) High   0.6% 0.6%

 

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 gained 0.07%.

 

 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 39 reading and lies below the neutral zone. On the whole, the pair has gained 0.23%.

 

 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 also indicating a bearish stance. The Relative Strength Index is above 37 reading and lies below the neutral region. In general, the pair has gained 0.02%.

 

 Euro-Sterling

This cross is currently trading above 14, 50 and 100 days moving average. Fast stochastic is indicating a bearish tone and MACD is also showing a bearish signal. The Relative Strength Index is above 52 and lies above the neutral region. On the whole, the pair has lost 0.17%.

 

 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 gained 0.07%.

 

Euro

The single currency remained slightly lower as European Bank President said the factors holding back local wages are subsiding and the ECB is confident that inflation in the eurozone would move toward its 2-percent goal. Draghi and his U.S counterpart Jerome Powell were speaking before a central banking conference in Sintra. Overall, the EUR/USD traded with a low of 1.1535 and a high of 1.1598 before closing the day around 1.1569 in the New York session.

 

Yen

The Japanese Yen pair gained yesterday, as US yields pulled back from lows hit on concerns about a worsening trade feud between Washington and Beijing. After recording heavy losses on the first two days of the week amid fears over the trade conflict, global equity indexes were able to rebound in yesterday’s session. Overall, the USD/JPY traded with a low of 109.83 and a high of 110.43 before closing the day around 110.33 in the U.S session.

 

British Pound

The British Pound was almost unchanged in yesterday’s session. In North American trade, GBP/USD traded up 0.05%. On the release front, British CBI Industrial Order Expectations sparkled, with a reading of 13 points. This easily beat the forecast of 1 point. Over in the U.S, the current account deficit narrowed to $124 billion, beating the forecast of $129 billion. Overall, the GBP/USD traded with a low of 1.3144 and a high of 1.3215 before closing the day at 1.3170 in the New York session.

 

Canadian Dollar

The Canadian Dollar steadied against its U.S counterpart as oil prices rose but the currency held near its weakest level in nearly one year amid uncertainty about the outlook for global trade. The price of oil, one of Canada’s major exports, was supported by reports of a drop in U.S. commercial crude inventories and the loss of storage capacity in Libya. Overall, USD/CAD traded with a low of 1.3266 and a high of 1.3319 before closing the day at 1.3306 in the New York session.

 

Australian Dollar

The Australian Dollar fell yesterday as selling the Australian dollar is still one of the market’s favorite ways to express a view that the world is a riskier place judging by the heavy selling over the past six days that has sent the currency tumbling almost 4 per cent. The losses follow a flare-up in trade tensions between the US and China this week and a diverging interest rate outlook between Australia and the US. Overall, AUD/USD traded with a low of 0.7367 and a high of 0.7407 before closing the day at 0.7370 in the New York session.

 

 

 Appendix

 

FOREX Closing Prices for June 20, 2018
Currency Open High Low Close Net Chg
EUR/USD 1.15872 1.15985 1.15354 1.15699 -0.0021
USD/JPY 110.061 110.432 109.835 110.337 0.2680
GBP/USD 1.31742 1.32153 1.31446 1.31701 -0.0005
USD/CHF 0.9938 0.99811 0.99348 0.99602 0.0017
USD/CAD 1.32789 1.3319 1.32668 1.33064 0.0019
EUR/JPY 127.568 127.913 127.07 127.672 0.0940
GBP/JPY 145.037 145.598 144.56 145.334 0.3300
CHF/JPY 110.703 110.857 110.277 110.753 0.0690
AUD/JPY 81.237 81.632 80.957 81.276 0.0150
EUR/GBP 0.8794 0.87994 0.87666 0.8784 -0.0015
EUR/CHF 1.15171 1.155 1.15055 1.15389 0.0015
GBP/CHF 1.3095 1.31604 1.30838 1.31163 0.0010

 

 

 

Daily Pivot Points
  Trading Range  
Contract S3 S2 S1 Pivot R1 R2 R3
EUR/USD 1.1474 1.1505 1.1537 1.1568 1.1600 1.1631 1.1664
USD/JPY 109.37 109.60 109.97 110.20 110.57 110.80 111.16
GBP/USD 1.3067 1.3106 1.3138 1.3177 1.3209 1.3247 1.3279
USD/CHF 0.9890 0.9912 0.9936 0.9959 0.9983 1.0005 1.0029
USD/CAD 1.3224 1.3245 1.3276 1.3297 1.3328 1.3350 1.3380
EUR/JPY 126.35 126.71 127.19 127.55 128.03 128.39 128.88
GBP/JPY 143.69 144.13 144.73 145.16 145.77 146.20 146.81
CHF/JPY 109.82 110.05 110.40 110.63 110.98 111.21 111.56
AUD/JPY 80.27 80.61 80.94 81.29 81.62 81.96 82.29
EUR/GBP 0.8734 0.8751 0.8767 0.8783 0.8800 0.8816 0.8833
EUR/CHF 1.1468 1.1487 1.1513 1.1531 1.1557 1.1576 1.1602
GBP/CHF 1.3003 1.3044 1.3080 1.3120 1.3157 1.3197 1.3233

 

 

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.

 

 

20 Jun 2018

Daily   Market View

 

Daily   Market View

 Wednesday, June 20, 2018
          U.S Stock Market

 

DJIA S & P 500 NASDAQ
24720 2766.50 7253.00
-1.15% -0.40% -0.28%

Global markets sank yesterday on fears that the United States and China may be veering toward an all-out trade war. The Dow Jones industrial average closed down 287 points, or 1.15 percent on worries that the tit-for-tat tariff threats between the two countries could expand into an economic brawl. The Dow had regained ground after plunging 419 points in morning trading. With the sell-off, the Dow has wiped out all its gains for the year. Tuesday’s close marked the sixth straight daily loss for the blue-chip composite of 30 stocks — its longest sustained slide in 15 months. The Standard & Poor’s 500-stock index declined 11 points or 0.4 percent. The tech-heavy NASDAQ fell 0.28 percent. As the markets fell, the White House made available one of the president’s chief trade advisers to explain the latest moves and to push back against critics. The declines in the U.S. markets followed a global rout. Asian benchmarks were hit the hardest. European markets also slid on the worries of global trade disruption.

 

 

 

Major Economic Releases for Today
Period Event GMT Forecast Previous

may

Australia Westpac Leading Index (MoM) 00:30   0.2%

 

BOJ Outright Bond Purchase 10~25 Years 01:10    

may

German Producer Price Index (YoY) 06:00 2.5% 2.0%

may

Japan Convenience Store Sales (YoY) 07:00   0.7%

jun

U.S MBA Mortgage Applications 11:00   -1.5%

 

Draghi, Powell, Kuroda, and Lowe speak in Sintra, Portugal 13:30    

may

U.S Existing Home Sales (MoM) 14:00 1.3% -2.5%

jun

DOE U.S. Crude Oil Inventories 14:30   -4143k

1Q

New Zealand Gross Domestic Product (YoY) 22:45 2.7% 2.9%
Dow Jones Industrial Average

The Dow Jones Industrial Average lost 1.15% yesterday. The best performers of the session on the Dow Jones Industrial Average were Verizon Communications Inc., which rose 2.19% or 1.04 points to trade at 48.50 at the close. Meanwhile, Johnson & Johnson added 1.03% or 1.25 points to end at 122.57 and Walmart Inc. was up 0.73% or 0.61 points to 83.61 in late trade. The worst performers of the session were Boeing Co, which fell 3.84% or 13.62 points to trade at 341.12 at the close. Caterpillar Inc. declined 3.62% or 5.38 points to end at 143.30 and 3M Company was down 2.34% or 4.78 points to 199.39.

 

NASDAQ 100

The tech heavy NASDAQ index declined 0.28% yesterday. The top performers on the NASDAQ Composite were Astrotech Corp which rose 226.15% to 6.360, Caladrius Biosciences Inc. which was up 67.34% to settle at 6.6100 and Gevo Inc. which gained 53.54% to close at 19.5000. The worst performers were PTC Therapeutics Inc. which was down 30.58% to 33.24 in late trade, Tintri Inc. which lost 25.39% to settle at 0.19 and Clean Diesel Technologies Inc. which was down 20.29% to 0.5500 at the close.

Oil

Oil fell yesterday ahead of a possible increase in OPEC crude supply, and as an escalating trade dispute between the United States and China unleashed sharp selloffs in many global markets. U.S. West Texas Intermediate crude futures fell $1.01, or 1.6 percent, to $64.84 a barrel. WTI is more vulnerable to spillover from today’s hard selloff in global equities than is Brent as the differential between the two benchmarks has stretched back to above $10 per barrel. Chinese stocks fell to their lowest in almost a year, while in the United States, all three major stock indexes were down, with the Dow Jones Industrial Average erasing its gains for the year. On Friday, the Organization of the Petroleum Exporting Countries (OPEC) and its allies are set to meet in Vienna, where they are expected to update their 2017 supply withholding agreement. Expectations are growing that OPEC and partner Russia will increase production in order to make up for output declines in Venezuela.

 

Precious and Base Metals

Gold fell to a near six-month low and platinum hit its lowest since February 2016 yesterday as a stronger greenback was overwhelmed by safe-haven buying, spurred by fears of a trade war between the world’s two top economies. The U.S. dollar index touched its highest since July 2017 against a basket of currencies, as U.S. President Donald Trump threatened to impose a 10 percent tariff on $200 billion of Chinese goods and Beijing said it would retaliate. The trade spat reinforced concerns about global growth and triggered a selloff in equities, whil boosting safe-haven currencies such as the yen and the dollar. Typically, gold is used by investors as a place to park assets during times of global uncertainty. But the dollar’s inverse relationship with bullion – a stronger greenback makes dollar-denominated assets more expensive for holders of other currencies – can often override other factors. In these environments, the Treasuries and dollars would tend to be safe havens. Gold would tend to be as well, though you had a big jump in the dollar, so that pressures gold. Spot gold fell 0.1 percent at $1,276.19 per ounce having touched its lowest since Dec. 22 at $1,270. U.S. gold futures for August delivery settled down $1.50, or 0.1 percent, at $1,278.60 per ounce. Platinum fell 1.6 percent at $867 an ounce, earlier touching its lowest since February 3, 2016 at $856.85. The rising prospect of further U.S Federal Reserve interest rate increases placed further pressure on gold. U.S homebuilding surged to near an 11-year high in May. Rate hikes would limit gold because they make non-interest-bearing commodities less attractive to investors. Other market watchers said gold prices fell to technical selling. Gold prices broke below the May low at $1,281.76 per ounce, and then the lows from the last couple of days, and continued selling off. Meanwhile, silver dropped 0.5 percent at $16.32 an ounce, after hitting its lowest since May 16 at $16.21.

Wheat, Corn and Soybeans

Grains futures expanded on their consecutive declines to settle near their multi-weeks lows pressured by the trade tensions between the U.S and China as well as the current beneficial weather and forecasts in addition to the global ample supply.

Wheat WK18 489.25 490 467.25 480 -10.25
Soybeans SK18 904.25 905.25 841.25 890 -18.25
Corn CK18 355 357.25 338.5 354.75 -1.75

 

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

 

DJM18 24073 24320 24520 24767 24967 25214 25414
SPM18 2697.25 2716.50 2741.50 2760.75 2785.75 2805.00 2830.00
NDM18 7059.75 7108.50 7180.75 7229.50 7301.75 7350.50 7422.75
HSH18 28458 28860 29116 29518 29774 30176 30432
NKH18 21527 21848 22027 22348 22527 22848 23027
FTH18 7418.33 7448.67 7509.33 7539.67 7600.33 7630.67 7691.33
GCJ18 1257.03 1264.67 1270.93 1278.57 1284.83 1292.47 1298.73
SIK18 1586.83 1604.67 1618.33 1636.17 1649.83 1667.67 1681.33
HGK18 291.22 297.43 300.87 307.08 310.52 316.73 320.17
CLK18 62.71 63.46 64.21 64.96 65.71 66.46 67.21
WK18 445.42 456.33 468.17 479.08 490.92 501.83 513.67
SK18 788.42 814.83 852.42 878.83 916.42 942.83 980.42
CK18 324.33 331.42 343.08 350.17 361.83 368.92 380.58

 

  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.

 

 

 

20 Jun 2018

FOREX Newsletter

                

                   

FOREX Newsletter

June 20, 2018
    

Pulse of the Market

·      U.S homebuilding rose 5% to a seasonally adjusted annual rate of 1.350 million units in May

·      U.S-China trade-war concerns intensified after U.S President threatened China with fresh tariffs

·      The British Pound fell ahead of the vote on the Brexit Withdrawal bill slated for today

·      The Canadian Dollar fell in yesterday’s session as oil prices fell heavily, weighing on the Loonie

The U.S Dollar rose to an 11-month high yesterday and the Euro slumped after U.S. President Donald Trump threatened more tariffs on China in an escalating trade dispute investors fear could hurt global growth. Hostility over trade between the world’s two largest economies intensified on Tuesday when Trump threatened to impose a 10 percent tariff on $200 billion of Chinese goods, prompting a swift warning from Beijing of retaliation. Months of tit-for-tat trade measures between Beijing and Washington have had a fairly limited impact on currencies up to now. But this week’s threats have hurt currencies including the Australian dollar and Swedish crown, vulnerable to protectionist measures. The dollar rose against a basket of currencies as traders bet on an escalating trade war forcing inflation up in the U.S. because of costlier imports, raising the prospect of more interest rate rises. Chinese stocks sank almost 4 percent and the yuan slumped to a five-month low overnight. Asian currencies and stocks are feeling most of the impact compared to Europe but that could quickly change if this escalates Investors bought currencies traditionally considered safe havens. The Japanese yen climbed 0.8 percent against the dollar to 109.56 yen, its highest level in a week and the Swiss franc rose 0.3 percent against the dollar to 0.9918 francs. Traders are divided other whether the row will affect the dollar meaningfully. Currency markets in general dislike trade intervention and previous protectionist efforts by the U.S. government have weakened the dollar. The euro, meanwhile, remained under heavy pressure due to a dispute in Germany’s governing coalition and expectations the European Central Bank will hold interest rates steady into 2019. Chancellor Angela Merkel’s Bavarian allies may defy her by implementing a plan to limit immigration at the German border, which could destabilize her three-month-old coalition. The single currency yesterday slumped to a two-week low after ECB President Mario Draghi called for a patient approach to European monetary policy at a forum in Portugal.

 

  
Time(GMT)   Economic Release IMP Actual Forecast Prior
00:30 Australia Westpac Leading Index (MoM) (MAY) Medium     0.2%
01:10 BOJ Outright Bond Purchase 10~25 Years Low      
01:10 BOJ Outright Bond Purchase 25 Years~ Low      
06:00 German Producer Price Index (YoY) (MAY) Low   2.5% 2.0%
07:00 Japan Convenience Store Sales (YoY) (MAY) Low     0.7%
08:00 ECB’s Lautenschläger chairs panel in Sintra Low      
10:00 U.K CBI Trends Total Orders (JUN) Low   1 -3
11:00 U.S MBA Mortgage Applications (JUN 15) Medium     -1.5%
12:30 U.S Current Account Balance (1Q) Low   -$129.0b -$128.2b
13:30 Draghi, Powell, Kuroda, and Lowe speak in Sintra, Portugal High      
14:00 U.S Existing Home Sales (MoM) (MAY) Medium   1.3% -2.5%
14:30 DOE U.S. Crude Oil Inventories (JUN 15) Medium     -4143k
22:45 New Zealand Gross Domestic Product s.a. (QoQ) (1Q) Medium   0.5% 0.6%
22:45 New Zealand Gross Domestic Product (YoY) (1Q) High   2.7% 2.9%
23:50 Japan Buying Foreign Bonds (Yen) (JUN 15) Low     -¥488.5b
23:50 Japan Buying Foreign Stocks (Yen) (JUN 15) Low     ¥20.7b

 

 

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 39 and lies below the neutral zone. In general, the pair has lost 0.72%.

 

 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 36 reading and lies below the neutral zone. On the whole, the pair has lost 0.99%.

 

 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 also indicating a bearish stance. The Relative Strength Index is above 36 reading and lies below the neutral region. In general, the pair has lost 1.00%.

 

 Euro-Sterling

This cross is currently trading above 14, 50 and 100 days moving average. Fast stochastic is indicating a bearish tone and MACD is also showing a bearish signal. The Relative Strength Index is above 52 and lies above the neutral region. On the whole, the pair has gained 0.26%.

 

 

 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 0.59%.

 

Euro

The single currency fell after a cautious tone by the ECB regarding ending quantitative easing. The euro recently took a nosedive on news from the ECB that while money printing is projected to end in December 2018, this is still contingent on the medium-term inflation outlook towards the ultimate target of below but close to 2 percent. Overall, the EUR/USD traded with a low of 1.1529 and a high of 1.1643 before closing the day around 1.1591 in the New York session.

 

Yen

The Japanese Yen strengthened against their major rivals on Tuesday, as the escalating trade conflict between the world’s two biggest economies sent investors scrambling for safer assets. Trade tensions between the U.S and China were already heightened when President Donald Trump threatened to slap new import levies. Overall, the USD/JPY traded with a low of 109.53 and a high of 110.55 before closing the day around 110.06 in the U.S session.

 

British Pound

The British Pound has posted losses yesterday. On the release front, there were no British releases. In the US, construction data was mixed. Building Permits dropped to 1.30 million, shy of the estimate of 1.35 million. This marked a 3-month low. Housing Starts improved to 1.35 million, beating the estimate of 1.31 million. Overall, the GBP/USD traded with a low of 1.3148 and a high of 1.3270 before closing the day at 1.3175 in the New York session.

 

Canadian Dollar

The Canadian Dollar weakened to a nearly one-year low against its U.S. counterpart yesterday as an escalating trade dispute between the United States and China pressured global stock and commodity markets. Investors have been concerned the trade spat between the two economic giants could slow global growth. Overall, USD/CAD traded with a low of 1.3194 and a high of 1.3289 before closing the day at 1.3287 in the New York session.

 

Australian Dollar

The Australian Dollar fell to a one-year low in yesterday’s trading session after the RBA appeared to downgrade its outlook for domestic interest rates and as financial markets responded to the latest escalation in the so-called trade war between the US and China. The minutes come at the tail end of a six-month period.  Overall, AUD/USD traded with a low of 0.7345 and a high of 0.7425 before closing the day at 0.7373 in the New York session.

 

 

 Appendix

 

FOREX Closing Prices for June 19, 2018
Currency Open High Low Close Net Chg
EUR/USD 1.16213 1.16431 1.15295 1.15911 -0.0033
USD/JPY 110.537 110.555 109.532 110.069 -0.4900
GBP/USD 1.32446 1.32709 1.31489 1.31751 -0.0071
USD/CHF 0.9951 0.99758 0.9916 0.99431 -0.0010
USD/CAD 1.31978 1.32894 1.31942 1.32875 0.0084
EUR/JPY 128.468 128.492 126.621 127.578 -0.9300
GBP/JPY 146.429 146.453 144.36 145.004 -1.4470
CHF/JPY 111.057 111.077 110.089 110.684 -0.4270
AUD/JPY 82.03 82.056 80.594 81.261 -0.8220
EUR/GBP 0.87711. 0.87988 0.87511 0.87988 0.0023
EUR/CHF 1.15655 1.15694 1.14852 1.15239 -0.0045
GBP/CHF 1.31811 1.3189 1.30776 1.31065 -0.0078

 

  

Daily Pivot Points
  Trading Range  
Contract S3 S2 S1 Pivot R1 R2 R3
EUR/USD 1.1419 1.1474 1.1533 1.1588 1.1646 1.1702 1.1760
USD/JPY 108.53 109.03 109.55 110.05 110.57 111.08 111.60
GBP/USD 1.3004 1.3076 1.3126 1.3198 1.3248 1.3320 1.3370
USD/CHF 0.9854 0.9885 0.9914 0.9945 0.9974 1.0005 1.0034
USD/CAD 1.3129 1.3162 1.3225 1.3257 1.3320 1.3352 1.3415
EUR/JPY 124.76 125.69 126.64 127.56 128.51 129.43 130.38
GBP/JPY 142.00 143.18 144.09 145.27 146.18 147.37 148.28
CHF/JPY 109.17 109.63 110.16 110.62 111.14 111.60 112.13
AUD/JPY 79.09 79.84 80.55 81.30 82.01 82.77 83.48
EUR/GBP 0.8719 0.8735 0.8767 0.8783 0.8815 0.8831 0.8862
EUR/CHF 1.1399 1.1442 1.1483 1.1526 1.1567 1.1610 1.1651
GBP/CHF 1.2948 1.3013 1.3060 1.3124 1.3171 1.3236 1.3283

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.

 

 

  

  Daily   Market View

           
 Tuesday, June 19, 2018
          U.S Stock Market

 

DJIA S & P 500 NASDAQ
25020 2780.00 7276.50
-0.41% -0.21% +0.01%

Global industrial stocks closed in the red yesterday, adding to a global sell-off sparked by heightened trade tensions between the U.S and China. Machine maker Caterpillar and aircraft manufacturer Boeing shed 0.8 percent, while semiconductor makers Broadcom and Qualcomm fell 2 percent and 1 percent respectively.  The Dow Jones industrial average closed down 100 points, or 0.4 percent, while the S&P 500 slid 0.2 percent. Tariffs imposed by the world’s two biggest economies are set to take effect on July 6, ratcheting up a trade dispute that has been simmering for months. President Donald Trump has announced a 25 percent tariff on up to $50 billion of Chinese products. China is retaliating by raising import duties on $34 billion worth of American goods, including soybeans, electric cars, and whiskey. The heightened tensions are creating increased uncertainty for U.S. businesses that operate internationally, and there are fears that rising prices and supply chain disruption will, in turn, hurt consumer confidence.

 

 

Major Economic Releases for Today
Period Event GMT Forecast Previous

1Q

Australia House Price Index (YoY) 01:30 1.7% 5.0%

jun

RBA June Meeting Minutes 01:30    

jun

Switzerland SECO June 2018 Economic Forecasts 05:45    

apr

Euro-Zone Current Account n.s.a. (euros) 08:00   40.6b

 

ECB President Draghi speaks in Sintra, Portugal 08:00    

apr

Euro-Zone Construction Output w.d.a. (YoY) 09:00   0.8%

may

U.S Housing Starts (MoM) 12:30 1.9% -3.7%

may

U.S Building Permits (MoM) 12:30 -1.0% -1.8%

 

BOJ Minutes of Policy Meeting 23:50    
Dow Jones Industrial Average

The Dow Jones Industrial Average declined 0.41% yesterday. The biggest gainers of the session on the Dow Jones Industrial Average were Chevron Corp, which rose 1.56% or 1.93 points to trade at 125.97 at the close. Visa Inc. added 0.81% or 1.10 points to end at 136.20 and Microsoft Corporation was up 0.73% or 0.73 points to 100.86 in late trade. Biggest losers included Intel Corporation, which lost 3.43% or 1.89 points to trade at 53.22 in late trade. Procter & Gamble Company declined 1.99% or 1.54 points to end at 75.84 and Merck & Company Inc. shed 1.68% or 1.04 points to 60.99.

 

NASDAQ 100

The tech-heavy NASDAQ index gained 0.01 yesterday. The top performers on the NASDAQ Composite were Gevo Inc. which rose 261.82% to 12.7000, Verastem Inc. which was up 31.39% to settle at 8.580 and PTC Therapeutics Inc. which gained 27.51% to close at 47.88. The worst performers were Catalyst Biosciences Inc. which was down 63.92% to 9.110 in late trade, NF Energy Saving Corporation which lost 24.47% to settle at 2.8400 and Apollo Medical Holdings Inc. which was down 22.16% to 20.13 at the close.

Oil

Oil prices rose in yesterday trading session in volatile trade as market participants lowered their expectations for how much OPEC might increase production and investors assessed the impact of a trade dispute between the United States and China. U.S crude oil rose 79 cents a barrel to settle at $65.85. The contract traded at a two-month low of $63.59 early in the session. Brent crude jumped $1.90 to $75.34 a barrel. China imposed import duties on U.S. products on Friday and suggested that crude oil tariffs were planned. That could leave growing volumes of U.S. crude from shale without a buyer, traders said. While the volumes would ultimately get shipped elsewhere, absent China the price could be depressed. Meanwhile, the Organization of the Petroleum Exporting Countries (OPEC) and allied oil producers including Russia meet on June 22 in Vienna. Russia and OPEC kingpin Saudi Arabia are pushing for higher output.

 

 

Precious and Base Metals

Gold yesterday held close to 5-1/2 month lows, with a strong dollar offsetting the impact on prices of an escalating trade dispute between the United States and China. The stronger dollar dampens demand for gold by making it costlier for buyers holding other currencies, while geopolitical uncertainty fuels interest in bullion as a safe investment. Spot gold was flat at $1,278.71 an ounce, while U.S. gold futures for August delivery were 0.2 percent higher at $1,281.20 an ounce. The dollar was slightly firmer and near its strongest since November against a basket of currencies. Gold plunged 1.8 percent on Friday, its biggest one-day fall since November 2016, as Washington decided to enact tariffs on $50 billion in Chinese goods, Beijing pledged to respond in kind and the dollar rocketed higher. Markets fear a trade war could damage global growth. World stocks fell on Friday and yesterday. We had a flush-out on Friday and the market is trying to work out whether these new (gold) prices are justified or not. Gold would remain sensitive to trade dispute headlines and the possibility that a showdown over immigration between German Chancellor Angela Merkel and her conservative allies the Christian Social Union could escalate. The market is also ignoring the political risks in Germany. Bets by funds on higher gold prices on the Comex exchange had risen in the week to June 12, supporting prices, but Friday’s rout may have forced some to liquidate their positions. Holdings of gold by exchange-traded funds (ETFs) tracked by Reuters meanwhile were stable after falling by 1.4 million ounces, or 2.4 percent, since late May. In other precious metals, silver was down 0.3 percent at $16.46 an ounce after falling 3.6 percent on Friday.

Wheat, Corn, and Soybeans

Wheat prices collapsed across US exchanges thanks to a wave of technical selling and eyes on the progress of the US harvest. Corn prices were off thanks to China’s decision to slap a number of US exports with tariffs. Soybeans were the lone bright spot on the futures board. The price of soybeans pushed higher Monday as markets weighed the ongoing spat between the United States and China.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Futures Settlement Price Monday, June 18, 2018
Instrument Contract Open High Low Settlement Net Change
DJIA DJM18 25069 25146 24837 25020 -93
S & P 500 SPM18 2780 2786.75 2761 2780 -4.75
NASDAQ 100 NDM18 7275 7288.75 7208.5 7276.5 -5
Hang Seng HSH18 N/A N/A N/A N/A N/A
Nikkei 225 NKH18 22765 22780 22550 22655 -165
FTSE 100 FTH18 7571.5 7588.5 7531.5 7588.5 -16
Gold GCJ18 1284.2 1284.6 1279.2 1281 2.2
Silver SIK18 1658 1662.5 1641.5 1649 -0.5
Copper HGK18 314.1 315.1 309.6 313.05 -1.75
Crude Oil CLK18 64.25 65.95 63.56 65.9 0.83
Wheat WK18 495.75 497.5 487.5 490.25 -9.75
Soybeans SK18 908.25 911 897 908.25 2.5
Corn CK18 359.5 360 353.5 356.5 -5.5

 

 

 

DJM18 24547 24692 24856 25001 25165 25310 25474
SPM18 2739.33 2750.17 2765.08 2775.92 2790.83 2801.67 2816.58
NDM18 7146.83 7177.67 7227.08 7257.92 7307.33 7338.17 7387.58
HSH18 N/A N/A N/A N/A N/A N/A N/A
NKH18 22313 22432 22543 22662 22773 22892 23003
FTH18 7493.50 7512.50 7550.50 7569.50 7607.50 7626.50 7664.50
GCJ18 1273.20 1276.20 1278.60 1281.60 1284.00 1287.00 1289.40
SIK18 1618.50 1630.00 1639.50 1651.00 1660.50 1672.00 1681.50
HGK18 304.57 307.08 310.07 312.58 315.57 318.08 321.07
CLK18 61.93 62.75 64.32 65.14 66.71 67.53 69.10
WK18 476.00 481.75 486.00 491.75 496.00 501.75 506.00
SK18 885.83 891.42 899.83 905.42 913.83 919.42 927.83
CK18 346.83 350.17 353.33 356.67 359.83 363.17 366.33

 

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.

 

 

 

 

 

 

19 Jun 2018

  FOREX Newsletter

       

FOREX Newsletter

June 19, 2018

 

   Pulse of the Market
  • The Dollar pushed higher yesterday, boosted by the diverging monetary policy outlook
  • The Euro fell 1.34% last week after the ECB outlined plans to keep interest rates on hold
  • The yen received an additional boost after an earthquake hit the western Japanese city of Osaka
  • The price of oil, one of Canada’s major exports, rose ahead of an OPEC meeting this week

 

The U.S Dollar edged up towards a seven-month high yesterday as investors bet the United States and China would avoid a full-blown trade war, although tensions between the two slowed its gains. The index was close to 95.131, a peak scaled on Friday, thanks to the dollar soaring more than 1 percent last week after the U.S. Federal Reserve gave a hawkish signal on interest rates while the European Central Bank struck a dovish tone. On top of last week’s Fed, ECB and the Bank of Japan policy meetings, the currency markets also weighed a U.S.-North Korea summit and the renewed trade tensions between the world’s two biggest economies. The greenback navigated through those events, last of which was a decision by the United States on Friday to enact tariffs on $50 billion in Chinese goods. Soon afterward, China’s official Xinhua news agency said Beijing would impose 25 percent tariffs on 659 U.S. products, ranging from soybeans and autos to seafood. The reaction by currencies to the trade developments has been mostly limited as the U.S. measure and China’s response was in line with expectations. A further escalation of U.S.-China trade tensions is, of course, a risk scenario. But the current tariffs, even if implemented, will hardly dent the global economy and the market also has to ponder about a scenario in which the two countries try to defuse tensions. The euro fell 0.15 percent extending losses after sliding 1.3 percent the previous week after the ECB signaled it will keep interest rates at record lows well into next year. Commodity-linked currencies sagged on the back of sliding crude oil prices. The Canadian dollar steadied against its U.S counterpart yesterday ahead of a speech by a Bank of Canada deputy governor, as oil prices rose and investors weighed the threat of a trade war that could slow global growth. On Friday, it touched its weakest level in nearly a year at $1.3210. The price of oil, one of Canada’s major exports, rose ahead of an OPEC meeting this week that is widely expected to increase global crude supply and as investors assessed the impact of a trade dispute between the United States and China. The OPEC meeting will be one of this week’s key events due to the way oil prices shape economic and price views and thus impact yields and currencies. The Australian dollar was little changed after plumbing a five-week low.

 

 

Time(GMT)   Economic Release IMP Actual Forecast Prior
01:30 Australia House Price Index (YoY) (1Q) Low   1.7% 5.0%
01:30 RBA June Meeting Minutes Medium      
05:45 Switzerland SECO June 2018 Economic Forecasts Low      
08:00 Euro-Zone Current Account s.a. (euros) (APR) Low     32.0b
08:00 ECB President Draghi speaks in Sintra, Portugal High      
08:30 ECB’s Peter Praet is chairing a panel in Sintra, Portugal Low      
11:00 ECB’s Lane and Praet, St. Louis Fed’s Bullard speak in Sintra Low      
12:30 U.S Housing Starts (MoM) (MAY) Medium   1.9% -3.7%
12:30 U.S Building Permits (MoM) (MAY) Medium   -1.0% -1.8%
22:00 New Zealand Westpac Consumer Confidence (2Q) Medium     111.2
22:45 New Zealand Current Account GDP Ratio YTD (1Q) Medium   -2.8% -2.7%
23:50 BOJ Minutes of Policy Meeting Medium      

 

 

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 gained 0.04%.

 

 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 indicating a bullish stance. The Relative Strength Index is above 43 reading and lies below the neutral zone. On the whole, the pair has lost 0.37%.

 

 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 also indicating a bearish stance. The Relative Strength Index is above 42 reading and lies below the neutral region. In general, the pair has lost 0.35%.

 

 Euro-Sterling

This cross is currently trading above 14, 50 and 100 days moving average. Fast stochastic is indicating a bearish tone and MACD is also showing a bearish signal. The Relative Strength Index is above 50 and lies above the neutral region. On the whole, the pair has gained 0.41%.

 

  Sterling-Swiss

This cross is trading below 14, 50 and 100 days moving average. Fast stochastic is issuing a bullish stance and MACD is also indicating a bullish tone. The Relative Strength Index is above 40 and lies below the neutral region. In general, the pair has lost 0.08%.

 

Euro

The single currency fell back toward three-week lows last week as the escalating threat of a global trade war and a dispute in Germany’s governing coalition weighed on the single currency. A decision by the United States on Friday to enact tariffs on $50 billion in Chinese goods was the latest move in a trade dispute. Overall, the EUR/USD traded with a low of 1.1563 and a high of 1.1624 before closing the day around 1.1624 in the New York session.

 

Yen

The Japanese Yen gained as anxiety about a global trade war spurred demand in yesterday’s trading session for the Japanese yen and Swiss franc, while the euro remained under pressure due to a dispute in Germany’s governing coalition and expectations the European Central Bank will hold interest rates steady into 2019. Overall, the USD/JPY traded with a low of 110.28 and a high of 110.64 before closing the day around 110.55 in the U.S session.

 

British Pound

The British Pound began the week on the back foot as it faces political turmoil amid the Conservative Party’s ongoing internal battle over Brexit. With a decision still awaited on whether the U.K. Parliament gets a say on the final deal to leave the European Union, sterling will likely be sensitive to the outcomes of a vote.  Overall, the GBP/USD traded with a low of 1.3224 and a high of 1.3274 before closing the day at 1.3246 in the New York session.

 

Canadian Dollar

The Canadian Dollar steadied against its U.S. counterpart yesterday ahead of a speech by a Bank of Canada deputy governor, as oil prices rose and investors weighed the threat of a trade war that could slow global growth. On Friday, it touched its weakest level in nearly a year at $1.3210. Overall, USD/CAD traded with a low of 1.3157 and a high of 1.3234 before closing the day at 1.3203 in the New York session.

 

Australian Dollar

The Australian Dollar remains under pressure, undermined by renewed trade tensions between the United States and China. Aussie sits at a six-week low, weighed down by soft Chinese and Australian economic data earlier in the week and, more recently, renewed trade tensions between the United States and China. Overall, AUD/USD traded with a low of 0.7440 and a high of 0.7478 before closing the day at 0.7444 in the New York session.

 

 

 Appendix

 

FOREX Closing Prices for June 18, 2018
Currency Open High Low Close Net Chg
EUR/USD 1.15944 1.16243 1.15639 1.16243 0.0015
USD/JPY 110.633 110.649 110.281 110.559 -0.1030
GBP/USD 1.32708 1.32746 1.3224 1.32466 -0.0037
USD/CHF 0.99761 0.99885 0.99341 0.99526 -0.0021
USD/CAD 1.31985 1.32349 1.3157 1.32033 0.0002
EUR/JPY 128.285 128.508 127.792 128.508 0.0480
GBP/JPY 146.838 146.88 146.077 146.451 -0.5430
CHF/JPY 110.864 111.142 110.61 111.111 0.1420
AUD/JPY 82.31 82.365 81.858 82.083 -0.2860
EUR/GBP 0.87344 0.8777 0.87269 0.87758 0.0036
GBP/CHF 1.1568 1.15697 1.15311 1.15687 -0.0009

 

 

 

Daily Pivot Points
  Trading Range  
Contract S3 S2 S1 Pivot R1 R2 R3
EUR/USD 1.1524 1.1544 1.1584 1.1604 1.1644 1.1665 1.1705
USD/JPY 109.98 110.13 110.34 110.50 110.71 110.86 111.08
GBP/USD 1.3172 1.3198 1.3222 1.3248 1.3273 1.3299 1.3323
USD/CHF 0.9874 0.9904 0.9928 0.9958 0.9983 1.0013 1.0037
USD/CAD 1.3084 1.3121 1.3162 1.3198 1.3240 1.3276 1.3318
EUR/JPY 127.31 127.55 128.03 128.27 128.75 128.99 129.46
GBP/JPY 145.26 145.67 146.06 146.47 146.86 147.27 147.66
CHF/JPY 110.23 110.42 110.77 110.95 111.30 111.49 111.83
AUD/JPY 81.33 81.60 81.84 82.10 82.35 82.61 82.85
EUR/GBP 0.8693 0.8710 0.8743 0.8760 0.8793 0.8810 0.8843
GBP/CHF 1.1505 1.1518 1.1543 1.1557 1.1582 1.1595 1.1621

 

 

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.

 

 

14 Jun 2018

Daily Market View

 

 

 

 

Thursday, June 14, 2018

 

U.S Stock Market

 

DJIA S & P 500 NASDAQ
25187 2774.25 7203.75
-0.45% -0.36% -0.08%

U.S stocks edged slightly lower yesterday after the Federal Reserve raised interest rates and pencil in a fourth rate increase for this year. The Dow declined 24 points, or 0.1%, while the S&P 500 fell 0.1% and the NASDAQ fell less than 0.1%. The Fed raised interest rate by another quarter-percentage point, bringing the benchmark federal-funds rate to a range between 1.75% and 2%. Eight of 15 Fed officials now expect at least four rate hikes will be needed this year, up from seven at the March meeting. U.S. government bond yields climbed after the decision, rising to 2.977% from 2.952% ahead of the announcement. The U.S. dollar reversed losses, and gold prices turned lower. Concerns about monetary stimulus ebbing have joined worries about politics and trade spats this year, creating a more volatile environment for markets. For many investors, the key to interpreting these moves is how much longer the economy can keep powering ahead before a new recession kicks in. The Labor Department said the producer-price index rose a seasonally adjusted 0.5% in May.

 

Major Economic Releases for Today
Period Event GMT Forecast Previous

may

Australia Employment Change 01:30 19.0k 22.6k

may

Australia Unemployment Rate 01:30 5.6% 5.6%

may

China Retail Sales (YoY) 02:00 9.6% 9.4%

apr

Japan Industrial Production (YoY) 04:30   2.5%

jun

European Central Bank Rate Decision 11:45 0.00% 0.00%

jun

ECB Marginal Lending Facility 11:45 0.25% 0.25%

 

ECB President Draghi Holds Press Conference in Riga 12:30    

may

U.S Retail Sales Advance (MoM) 12:30 0.4% 0.3%

jun

U.S Initial Jobless Claims 12:30 222k 222k

Dow Jones Industrial Average

The Dow Jones Industrial Average lost 0.47%. The best performers of the session on the Dow Jones Industrial Average were Walt Disney Company, which rose 1.90% or 1.98 points to trade at 106.31 at the close. Meanwhile, Goldman Sachs Group Inc. added 0.52% or 1.20 points to end at 233.83 and Intel Corporation was up 0.38% or 0.21 points to 55.03 in late trade. The worst performers of the session were Verizon Communications Inc., which fell 2.89% or 1.41 points to trade at 47.40 at the close. Boeing Co declined 1.83% or 6.77 points to end at 363.85 and Caterpillar Inc. was down 1.77% or 2.78 points to 154.71.

 

NASDAQ 100
The NASDAQ index declined 0.11%. The top performers were Enphase Energy Inc. which rose 32.89% to 5.9 80, Spi Energy Co Ltd which was up 23.99% to settle at 0.43 and Galectin Therapeutics Inc. which gained 23.54% to close at 7.820. The worst performers were Flex Pharma Inc. which was down 75.12% to 1.04 in late trade, Scpharmaceuticals Inc. which lost 22.08% to settle at 5.93 and Ohr Pharmaceuticals Inc. which was down 19.03% to 0.260 at the close.
Oil
Oil prices turned positive yesterday after a bigger than expected decline in U.S. crude inventories along with surprise drawdowns in gasoline and distillates indicated strong demand in the world’s top oil consumer. Earlier in the session, Brent and U.S. crude futures had retreated on concerns about rising production in the United States and expectations that OPEC and other producers could relax voluntary output cuts when they meet on June 22-23 in Vienna. Late in the session, crude prices slipped slightly as the Federal Reserve raised interest rates, a move that was widely expected but still marked a milestone in the U.S. central bank’s shift from policies used to battle the 2007-2009 financial crisis and recession. Higher interest rates strengthen the dollar, increasing the cost of commodities including oil for buyers using other currencies. U.S. crude inventories fell 4.1 million barrels last week, the EIA said, exceeding analysts’ expectations for a decrease of 2.7 million barrels.

 

 

Oil
Oil prices turned positive yesterday after a bigger-than-expected decline in U.S. crude inventories along with surprise drawdowns in gasoline and distillates indicated strong demand in the world’s top oil consumer. Earlier in the session, Brent and U.S. crude futures had retreated on concerns about rising production in the United States and expectations that OPEC and other producers could relax voluntary output cuts when they meet on June 22-23 in Vienna. Late in the session, crude prices slipped slightly as the Federal Reserve raised interest rates, a move that was widely expected but still marked a milestone in the U.S. central bank’s shift from policies used to battle the 2007-2009 financial crisis and recession. Higher interest rates strengthen the dollar, increasing the cost of commodities including oil for buyers using other currencies. U.S. crude inventories fell 4.1 million barrels last week, the EIA said, exceeding analysts’ expectations for a decrease of 2.7 million barrels

 

 

Precious and Base Metals

Gold price gained in yesterday’s trading session after U.S Federal Reserve policy announcement help triggers a move higher. The Fed hiked its benchmark short-term interest rate a quarter percentage point yesterday and indicated that two more increases are likely this year. The move pushes the funds’ rate target to 1.75 percent to 2 percent. The rate is closely tied to consumer debt, particularly credit cards, home equity lines of credit and other adjustable-rate instruments. In an unusually terse statement that ran just 320 words, the Federal Open Market Committee changed multiple phrases from its previous missives, pointing to a more optimistic view on economic growth and higher inflation expectations. Investors already expected the Fed to raise interest rates but wanted to know if it intends to tighten policy four times in 2018 or three times, as it indicated earlier this year.  More rate rises would hurt gold because they push up bond yields, making non-yielding bullion a less attractive investment, and tend to strengthen the dollar, increasing the cost of gold for buyers using other currencies. Gold prices have tended to fall before recent U.S. interest rate rises, as investors anticipate the change, but rally afterward. Spot gold was flat at $1,295.86 an ounce and U.S gold futures for August delivery were also almost unchanged at $1,299.80. The dollar weakened slightly against a basket of major currencies, giving gold some support. Reinforcing the cautious moods were policy announcements expected from the ECB today and Japan’s central bank on Friday, which could affect gold prices. The ECB is expected to signal a wind-down of its huge bond-buying program, which could strengthen the euro and boost gold demand in Europe. Holdings of gold by ETFs tracked by Reuters have decreased by 1.4 million ounces, or 2.4 percent, since late May, while bets on higher prices on the Comex exchange remain low after falling last month to the fewest since January 2016.

 

Wheat, Corn, and Soybeans

Wheat gave up 1 percent after Tuesday’s strong rally which was triggered by the U.S. government’s estimates of lower Russian production. Soybeans slid more than 1 percent to its lowest since mid-September yesterday.

Wheat WK18 533.75 538.5 514 517.5 -16.75
Soybeans SK18 954.75 958 934 937.5 -17.5
Corn CK18 378 379.25 373 376.75 -1

 

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.

 

14 Jun 2018

FOREX Newsletter

June 14, 2018

 

 

Pulse of the Market

  • The Federal Reserve raised interest rates by a quarter of a percentage point yesterday
  • Powell after the Fed’s two-day meeting said the economy has strengthened significantly
  • The British Pound pared earlier gains despite U.K inflation matching economists’ estimates
  • Canadian Dollar gained as oil prices continued to support amid larger draw in U.S crude supplies

The U.S Dollar fell against its rivals despite upbeat economic data pointing to signs of faster inflation. The Labor Department said yesterday its producer price index for final demand increased 0.5% last month, topping expectations for a 0.3% rise. In the 12 months through May, the PPI rose 3.1% after rising 2.6% in April. The faster pace of inflation comes as data showed Tuesday the consumer price index rose 0.2%, beating economists’ forecasts for a 0.1% rise. The Federal Reserve yesterday voted to raise its benchmark federal-funds rate by a quarter-percentage point and became slightly more hawkish on its expectations for what it will have to do this year. The Fed increased the federal funds rate target to a range of 1.75% and 2% and forecasted it expected to raise rates four times this year, up from a forecast of three in March. The move did not reflect a major shift in the Fed’s thinking. The “dot plot” shows only one official switched to a slightly higher interest-rate path. And the difference between three and four moves this year remains extremely narrow. Eight Fed officials said they expected interest rates to rise at least four times while seven forecast three rate hikes. Ahead of the decision, analysts said a signal of four rate hikes would indicate the Fed is focusing more on the low U.S. unemployment rate and not worried about weakness overseas or recent market turmoil sparked by Italian politics. The central bank made several changes to the statement to reflect the economy is much firmer ground. The Canadian dollar edged higher against its U.S counterpart yesterday, with the currency recovering from an earlier one-week low ahead of an expected interest rate hike by the Federal Reserve. The Australian Dollar recovered from Tuesday’s drop, as traders took up positions ahead of the latest volley of labor market data due for release today.

Time(GMT)   Economic Release IMP Actual Forecast Prior
01:00 Australia Consumer Inflation Expectation (JUN) Medium     3.7%
01:30 Australia Employment Change (MAY) High   19.0k 22.6k
01:30 Australia Unemployment Rate (MAY) High   5.6% 5.6%
02:00 China Retail Sales (YoY) (MAY) Medium   9.6% 9.4%
02:00 China Industrial Production (YoY) (MAY) Medium   7.0% 7.0%
04:30 Japan Industrial Production (YoY) (APR) Medium     2.5%
06:00 German Consumer Price Index (YoY) (MAY) Medium   2.2% 2.2%
11:45 European Central Bank Rate Decision (JUN 14) High   0.00% 0.00%
11:45 ECB Marginal Lending Facility (JUN 14) High   0.25% 0.25%
11:45 ECB Deposit Facility Rate (JUN 14) High   -0.40% -0.40%
12:30 Canada New Housing Price Index (YoY) (APR) Medium   1.7% 2.4%
12:30 ECB President Draghi Holds Press Conference in Riga High      
12:30 U.S Retail Sales Advance (MoM) (MAY) High   0.4% 0.3%
12:30 U.S Import Price Index ex Petroleum (MoM) (MAY) Medium   0.2% 0.1%
12:30 U.S Export Price Index (YoY) (MAY) Medium     3.8%
12:30 U.S Initial Jobless Claims (JUN 09) Medium   222k 222k
12:30 U.S Continuing Claims (JUN 02) Medium   1734k 1741k
14:00 U.S Business Inventories (APR) Medium   0.3% 0.0%

 

Euro

The single currency gained as the U.S Dollar fell despite upbeat economic data pointing to signs of faster inflation. The Labor Department data showed that its producer price index for final demand increased 0.5% last month, topping expectations for a 0.3% rise. In the 12 months through May, the PPI rose 3.1% after rising 2.6% in April. Overall, the EUR/USD traded with a low of 1.1723 and a high of 1.1799 before closing the day around 1.1793 in the New York session.

 

Yen

The Japanese Yen pair reversed its earlier gains in yesterday’s session as the move to increase rate did not reflect a major shift in the Fed’s thinking. The “dot plot” shows only one official switched to a slightly higher interest-rate path. And the difference between three and four moves this year remains extremely narrow. Overall, the USD/JPY traded with a low of 110.25 and a high of 110.82 before closing the day around 110.35 in the U.S session.

 

British Pound

The British Pound won a moment’s respite late Tuesday when MP’s rejected the so called “meaningful vote” amendment to the EU Withdrawal Bill, which seemingly kicks any threat to the stability of the government out into the long grass, but the next challenge to Prime Minister Theresa May’s leadership and the government is already looming over Sterling. Overall, the GBP/USD traded with a low of 1.3306 and a high of 1.3387 before closing the day at 1.3376 in the New York session.

 

Canadian Dollar

The Canadian Dollar edged higher against its U.S counterpart yesterday, with the currency recovering from an earlier one-week low. The Bank of Canada has raised interest rates once this year. Chances of another hike at its next meeting in July have eased to about 62 per cent from more than 70 per cent before a G7 summit in Canada at the weekend. Overall, USD/CAD traded with a low of 1.2952 and a high of 1.3049 before closing the day at 1.2987 in the New York session.

 

Australian Dollar

The Australian Dollar rose against a majority of developed world currencies yesterday, recovering from an overnight slump, as traders took up positions ahead of the latest volley of labor market data from down under that is due for release. Today’s unemployment data offers the Aussie unit a chance to recover some more lost ground Overall, AUD/USD traded with a low of 0.7527 and a high of 0.7606 before closing the day at 0.7562 in the New York session.

 

 

Euro-Yen

EUR/JPY is trading below 14, 50 and 100 days moving average. Fast stochastic is giving a bullish tone and MACD is also issuing a bullish stance. The Relative Strength Index is above 55 and lies above the neutral zone. In general, the pair has gained 0.37%.

 

  Sterling-Yen

Currently, GBP/JPY is trading below 14, 50 and 100 days moving average. Fast stochastic is issuing a bullish tone and MACD is also indicating a bullish stance. The Relative Strength Index is above 51 reading and lies above the neutral zone. On the whole, the pair has closed unchanged.

 

  

Aussie-Yen

Currently, the cross is trading below 14, 50 and 100 days moving average. Fast stochastic is giving a bullish tone and MACD is also indicating a bullish stance. The Relative Strength Index is above 54 reading and lies above the neutral region. In general, the pair has gained 0.07%.

 

  

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 showing a bullish signal. The Relative Strength Index is above 56 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 bullish stance and MACD is indicating a bearish tone. The Relative Strength Index is above 38 and lies below the neutral region. In general, the pair has lost 0.11%.

 

 

Appendix

  

FOREX Closing Prices for June 13, 2018
Currency Open High Low Close Net Chg
EUR/USD 1.17445 1.17996 1.17238 1.17931 0.0046
USD/JPY 110.335 110.829 110.252 110.353 -0.0310
GBP/USD 1.33707 1.33876 1.33064 1.33764 0.0003
USD/CHF 0.98655 0.98934 0.98384 0.9856 -0.0012
USD/CAD 1.30145 1.30494 1.29529 1.29877 -0.0029
EUR/JPY 129.606 130.324 129.577 130.132 0.4760
GBP/JPY 147.555 147.87 147.186 147.609 -0.0040
CHF/JPY 111.831 112.169 111.773 111.986 0.1070
AUD/JPY 83.533 83.954 83.412 83.642 0.0550
EUR/GBP 0.87809 0.88235 0.87789 0.88168 0.0033
EUR/CHF 1.15863 1.16222 1.15856 1.16222 0.0031
GBP/CHF 1.31919 1.32024 1.31445 1.31837 -0.0015

 

 

 

Daily Pivot Points
  Trading Range  
Contract S3 S2 S1 Pivot R1 R2 R3
EUR/USD 1.1669 1.1696 1.1745 1.1772 1.1821 1.1848 1.1896
USD/JPY 109.55 109.90 110.13 110.48 110.70 111.06 111.28
GBP/USD 1.3245 1.3276 1.3326 1.3357 1.3407 1.3438 1.3488
USD/CHF 0.9777 0.9808 0.9832 0.9863 0.9887 0.9918 0.9942
USD/CAD 1.2847 1.2900 1.2944 1.2997 1.3040 1.3093 1.3137
EUR/JPY 128.95 129.26 129.70 130.01 130.45 130.76 131.19
GBP/JPY 146.56 146.87 147.24 147.56 147.92 148.24 148.61
CHF/JPY 111.39 111.58 111.78 111.98 112.18 112.37 112.58
AUD/JPY 82.84 83.13 83.38 83.67 83.93 84.21 84.47
EUR/GBP 0.8745 0.8762 0.8789 0.8806 0.8834 0.8851 0.8879
EUR/CHF 1.1561 1.1573 1.1598 1.1610 1.1634 1.1647 1.1671
GBP/CHF 1.3093 1.3119 1.3151 1.3177 1.3209 1.3235 1.3267

 

 

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.

   •  Bulls show resilience below the 0.70 mark despite a modest USD uptick. 
   •  Pickup in the US bond yields/weaker commodities did little to exert pressure.

The NZD/USD pair built on its modest rebound from over one-week lows and is currently placed at fresh session tops, around the 0.7015-20 region.

The US Dollar stood tall against its major counterpart in anticipation of some hawkish policy outlook from the Federal Reserve, evident from the prevalent positive tone surrounding the US Treasury bond yields. 

The pair, however, defied a modest USD uptick and continues finding decent buying interest at lower levels, showing resilience below the key 0.70 psychological mark. 

Even weaker commodity prices, which tend to undermine demand for commodity-linked currencies, also did little to prompt any selling, with a bout of short-covering helping the pair to recover a major part of overnight weakness. 

Today’s key focus will remain on the outcome of a two-day FOMC meeting, where fresh signals over the central bank’s monetary policy outlook for 2018 should help determine the pair’s next leg of directional move. 

Technical levels to watch

Any subsequent up-move is likely to confront immediate resistance near the 0.7035-40 region and is closely followed by 0.7060 barrier, over one-month tops set on June 6th.

On the flip side, the 0.70 region might continue to protect the immediate downside, which if broken would mark a fresh bearish breakdown and accelerate the downfall towards 0.6965-60 support area.
 

The post NZD/USD refreshes session tops, comfortable above 0.70 handle appeared first on CIX Markets.

Rising global supply worries and firmer DXY weighs down on oil.
Focus shifts to EIA crude data to confirm the bearish API crude inventories report.

WTI (oil futures on NYMEX) seems to have caught a fresh bid-wave in the European session, having reversed a dip below the $ 66 mark, although the bounce looks shallow amid persistent worries over rising global oil production. The output levels in the US, Russia, Saudi Arabia and Kazakhstan are seen on the rise lately, dampening the investors’ sentiment.

More so, the latest Bloomberg report citing a Russian source, as saying that Russia is planning to propose the OPEC and its other allies to return their production to Oct 2016 levels.

Further, oil prices also remain weighed by the bearish API crude inventory report released late-Tuesday.  The API data showed that the US crude oil inventories rose by 830,000 barrels in the week to June 8, to 433.7 million.

Meanwhile, broad-based US dollar buying amidst expectations of a hawkish Fed outcome also keeps the bearish pressure intact on the black gold. A stronger US dollar makes the USD-denominated oil more expensive for the foreign buyers.

The latest leg higher in the barrel of WTI can be mainly attributed to the IEA’s monthly oil report, which highlighted that Iran and Venezuela oil output could slump by almost 30 percent due to US sanctions.

Looking ahead, all eyes remain on the US government official crude supplies report and FOMC decision for fresh direction on the prices.

The post WTI trims losses to regain $ 66 ahead of EIA data, Fed appeared first on CIX Markets.