August 15, 2018
Pulse of the Market
· After a one day reprieve, investors returned to buying U.S Dollars yesterday
· Investors are worried that Europe is ground zero for the next emerging market crisis
· Sterling gave up earlier gains to end the day near its 1.2705 low
· The performance of the commodity currencies was less consistent in yesterday’s session
|00:30||Australia Westpac Consumer Confidence (AUG)||Medium||3.9%|
|01:30||China New Home Prices (MoM) (JUL)||Medium||1.1%|
|08:30||U.K Consumer Price Index (YoY) (JUL)||High||2.5%||2.4%|
|08:30||U.K Retail Price Index (YoY) (JUL)||Low||3.4%||3.4%|
|08:30||U.K House Price Index (YoY) (JUN)||Medium||2.6%||3.0%|
|11:00||U.S MBA Mortgage Applications (AUG 10)||Medium|
|12:30||U.S Empire Manufacturing (AUG)||Low||20||22.6|
|12:30||U.S Retail Sales Advance (MoM) (JUL)||High||0.1%||0.5%|
|13:00||Canada Existing Home Sales (MoM) (JUL)||Medium||4.1%|
|13:15||U.S Industrial Production (MoM) (JUL)||Medium||0.3%||0.6%|
|13:15||U.S Manufacturing (SIC) Production (JUL)||Medium||0.3%||0.8%|
|14:00||U.S NAHB Housing Market Index (AUG)||Medium||67||68|
|14:30||DOE U.S. Crude Oil Inventories (AUG 10)||Medium|
|20:00||U.S Net Long-term TIC Flows (JUN)||Medium||$45.6b|
|23:50||Japan Trade Balance (JUL)||Medium||-¥41.2b||¥721.4b|
The single currency fell yesterday despite Eurozone growth was better than expected in the second quarter, flash estimates from the European statistics office Eurostat showed, in a sign that the negative effect of global trade tensions might be seen only later in the year. Industrial output in the in 19-country currency bloc fell sharply in June. Overall, the EUR/USD traded with a low of 1.1328 and a high of 1.1428 before closing the day around 1.1345 in the New York session.
The Japanese Yen pair has been paring gains against the US Dollar since the start of this trading week with USD/JPY testing initial resistance yesterday in early US trade. Keep in mind we get the release of US Advanced Retail Sales tomorrow with University of Michigan confidence surveys on tap this Friday. Overall, the USD/JPY traded with a low of 110.56 and a high of 111.29 before closing the day around 111.15 in the U.S session.
The British Pound fell in a response to UK labor market data which showed a sharp and unexpected dip in the country’s unemployment rate. UK’s unemployment rate was recorded at 4.0% by the Office for National Statistics; markets were expecting it to remain stuck at 4.2%. This represents the lowest unemployment rate since 1975. Overall, the GBP/USD traded with a low of 1.2702 and a high of 1.2825 before closing the day at 1.2722 in the New York session.
The Canadian Dollar strengthened against its U.S counterpart yesterday as the currency rebounded from a near three-week low the day before, supported by higher global stock prices and the ebbing threat from a collapse of the Turkish lira. Investors have worried that a crisis in Turkey could spread to other emerging market countries. Overall, USD/CAD traded with a low of 1.3054 and a high of 1.3134 before closing the day at 1.3060 in the New York session.
The Australian Dollar gained earlier in the session yesterday following a surprise increase in Australian business confidence. The NAB data release wasn’t entirely positive, however, and with risk aversion, still rife the Australian Dollar’s gains were reversed sharply and the Australian Dollar ended the day lower. Overall, AUD/USD traded with a low of 0.7222 and a high of 0.7281 before closing the day at 0.7234 in the New York session.
EUR/JPY is trading above 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 27 and lies below the neutral zone. In general, the pair has lost 0.19%.
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 23 reading and lies below the neutral zone. On the whole, the pair has gained 0.04%.
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 32 reading and lies below the neutral region. In general, the pair has lost 0.04%.
This cross is currently trading above 14, 50 and 100 days moving average. Fast stochastic is indicating a bearish tone and MACD is issuing a bullish signal. The Relative Strength Index is above 52 and lies above the neutral region. On the whole, the pair has lost 0.23%.
This cross is trading below 14, 50 and 100 days moving average. Fast stochastic is issuing a bearish stance and MACD is also indicating a bearish tone. The Relative Strength Index is above 19 and lies below the neutral region. In general, the pair has lost 0.26%.
|FOREX Closing Prices for August 14, 2018|
|Daily Pivot Points|
Sources: News, Charts & Quotes (Courtesy: Reuters, US Department Of Treasury)
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