07 Ago 2018

Daily Market View

       

Daily Market View

Tuesday, August 07, 2018
          U.S Stock Market

 

DJIA S & P 500 NASDAQ
25471 2850.50 7445.00
+0.16% +0.35% +0.61%

U.S stocks finished higher yesterday, with the NASDAQ rising for a fifth straight day as investors focused on healthy corporate earnings, which have so far helped to buoy the market over recent sessions. Technology and consumer discretionary stocks led the gains, underpinning the market’s move higher. However, trade-related worries lingered as the U.S continued to clash with its global counterparts over tariffs. The S&P 500 index rose 10.05 points, or 0.4%, with nine of its 11 main sectors closing in positive territory. The NASDAQ Index gained 47.66 points, or 0.6% and the Dow Jones advanced 39.60 points, or 0.2%. Investors continued to weigh solid earnings against repercussions of retaliatory tariffs from trading partners and their impact on financial markets. Last week, China announced tariffs on $60 billion of U.S. products in response to the U.S.’s planned 25% tariffs on $200 billion of Chinese imports. On Sunday, President Donald Trump tweeted that tariffs are “working big time.” Elsewhere, data showed German manufacturing orders plunged 4% in June.

 

Major Economic Releases for Today
Period Event GMT Forecast Previous

jun

Japan Labor Cash Earnings (YoY) 00:00 1.7% 2.1%

aug

Australia RBA Cash Rate Target 04:30 1.50% 1.50%

jun

German Trade Balance 06:00 20.8b 19.7b

jun

German Industrial Production n.s.a. and w.d.a. (YoY) 06:00 3.0% 3.1%

2Q

Switzerland UBS Real Estate Bubble Index 06:00   1.1

jul

U.K Halifax House Prices (MoM) 07:30 0.2% 0.3%

jun

U.S JOLTS Job Openings 14:00 6625 6638

jun

U.S Consumer Credit 19:00 $15.0b $24.559b

jun

Japan Trade Balance – BOP Basis (Yen) 23:50 ¥822.0b -¥303.8b
Dow Jones Industrial Average

The Dow Jones Industrial Average rose 0.16% yesterday. The biggest gainers of the session on the Dow Jones Industrial Average were International Business Machines, which rose 3.32% or 4.74 points to trade at 147.70 at the close. Pfizer Inc. added 2.24% or 0.89 points to end at 40.54 and Walt Disney Company was up 1.19% or 1.34 points to 114.09 in late trade. Biggest losers included Boeing Co, which lost 0.37% or 1.29 points to trade at 348.44 in late trade. United Technologies Corporation declined 0.17% or 0.23 points to end at 133.89 and Home Depot Inc. shed 0.01% or 0.02 points to 195.64.

 

NASDAQ 100

The tech heavy NASDAQ index climbed 0.61% yesterday. The top performers on the NASDAQ Composite were Oxbridge Re Holdings Ltd which rose 31.43% to 2.30, Pixelworks Inc. which was up 28.99% to settle at 4.205 and Universal Electronics Inc. which gained 26.26% to close at 44.95. The worst performers were Helios and Matheson Analytics Inc. which was down 30.00% to 0.070 in late trade, Varex Imaging Corp which lost 26.32% to settle at 28.36 and Immersion Corporation which was down 24.24% to 10.78 at the close.

Oil

Oil futures gained yesterday after OPEC sources said Saudi crude production unexpectedly fell in July, raising concerns about global oil supplies as the United States prepares to reinstate sanctions against major exporter Iran. U.S. West Texas Intermediate (WTI) crude futures rose 52 cents to settle at $69.01 a barrel. Saudi Arabia pumped around 10.29 million barrels per day (bpd) of crude in July, two sources at the Organization of the Petroleum Exporting Countries said on Friday, down about 200,000 bpd from June. That came despite a pledge by the Saudis and top producer Russia in June to raise output from July, with Saudi Arabia promising a “measurable” supply boost. Prices had dropped recently assuming that Saudi was going to continue to produce. Brent oil prices have fallen 6.5 percent in July, their steepest monthly drop since July 2016. The United States also plans to re-introduce sanctions on Iranian oil in November.

 

Precious and Base Metals

Gold prices fell yesterday under pressure as a firmer dollar and expectations for further interest rate hikes by the U.S. Federal Reserve offset U.S. ‘snapback’ sanctions targeting the purchase of precious metals. Overall the bears remain in control and they continue to increase their short positions – both the net and gross are hitting records. Hedge funds and money managers added 13,931 contracts to their net short position in the week to July 31, bringing it to 41,087 contracts, the biggest since records became publicly available in 2006. Spot gold was down 0.32 percent at $1,209.18 an ounce. U.S gold futures for December delivery settled down $5.50, or 0.5 percent, at $1,217.70 per ounce. The Trump administration will aggressively enforce economic sanctions that it is re-imposing on Iran this week and expects the measures to have a significant impact on the Iranian economy, senior U.S. administration officials said. Those sanctions include precious metals, U.S. bank notes, steel and coal. People in Iran are buying gold to shore up their currency. But that demand in Iran has not offset the selling of gold in the Western countries because of the higher (U.S.) interest rates and the higher U.S Dollar. Gold is sensitive to higher U.S. interest rates, because it costs to store and does not draw interest payments.  The dollar rose against a basket of currencies, building on two consecutive weeks of gains, as investors bet that trade war rhetoric and a strong U.S. economy would continue to drive the currency higher. Investors have largely been buying the dollar as a safe haven asset rather than gold as the U.S.-China trade dispute escalates. China proposed retaliatory tariffs on $60 billion of U.S. goods on Friday, after U.S. President Donald Trump’s administration proposed a higher, 25 percent tariff on $200 billion of Chinese imports. Silver prices fell 0.3 percent to $15.33 an ounce. Silver is doing reasonably well. Normally we’d find silver underperforming when gold is sold off, but the selling appetite seems to be relatively muted.

 

 

Traditional Agricultures

Soybeans edged lower yesterday as an escalation in the trade war between Washington and Beijing stoked fears for sales of U.S soybeans to China, which imported around $12 billion of the oilseed last year.

 

 

Futures Settlement Price Monday, August 06, 2018
Instrument Contract Open High Low Settlement Net Change
DJIA DJM18 25420 25506 25343 25471 53
S & P 500 SPM18 2841.25 2853.25 2835 2850.5 10
NASDAQ 100 NDM18 7404.75 7449.25 7387.25 7445 42
Hang Seng HSH18 27821 28010 27626 27734 115
Nikkei 225 NKH18 22560 22600 22465 22485 -15
FTSE 100 FTH18 7617.5 7622 7575 7603.5 -14
Gold GCJ18 1223 1225.7 1214.2 1215.8 -7.6
Silver SIK18 1543.5 1549.5 1528 1532 -16
Copper HGK18 275.2 275.85 270.65 272.95 -3.85
Crude Oil CLK18 68.52 69.88 68.49 68.97 0.42
Wheat WK18 554 575.75 551.25 574.25 17
Soybeans SK18 890.25 891.75 876.75 883.25 -9
Corn CK18 369.75 371.5 367.75 371.25 0.75

 

 

Daily Swings  (The Pivot Levels)
  Trading Range  
Contract S3 S2 S1 Pivot R1 R2 R3
DJM18 25211 25277 25374 25440 25537 25603 25700
SPM18 2821.00 2828.00 2839.25 2846.25 2857.50 2864.50 2875.75
NDM18 7343.08 7365.17 7405.08 7427.17 7467.08 7489.17 7529.08
HSH18 27186 27406 27570 27790 27954 28174 28338
NKH18 22298 22382 22433 22517 22568 22652 22703
FTH18 7531.33 7553.17 7578.33 7600.17 7625.33 7647.17 7672.33
GCJ18 1199.93 1207.07 1211.43 1218.57 1222.93 1230.07 1234.43
SIK18 1502.00 1515.00 1523.50 1536.50 1545.00 1558.00 1566.50
HGK18 265.25 267.95 270.45 273.15 275.65 278.35 280.85
CLK18 66.96 67.72 68.35 69.11 69.74 70.50 71.13
WK18 533.92 542.58 558.42 567.08 582.92 591.58 607.42
SK18 861.08 868.92 876.08 883.92 891.08 898.92 906.08
CK18 365.08 366.42 368.83 370.17 372.58 373.92 376.33

 

 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.

 

 

 

 

 

 

07 Ago 2018

FOREX Newsletter

     

FOREX Newsletter

August 07, 2018

 

Pulse of the Market

·      The U.S Dollar edged higher amid investor worries about an escalating U.S-China trade tensions

·      The worst performing currency yesterday was sterling as talk of a no-deal Brexit grows

·      Significantly weaker than expected German factory orders drove EUR/USD to a one month low

·      The Canadian Dollar gained as rising oil prices supported the loonie, limiting gains in the USDCAD

The new trading week started with the U.S dollar extending its gains. Although the greenback retreated during the NY session, the reversal did not occur until after EUR/USD hit a 1 month low and GBP/USD a 10 month low. The European currencies were hit the hardest but none of the majors escaped the dollar’s rally. Trade tensions and Yuan weakness are the primary reasons why investors are buying dollars. After rising briefly after the People’s Bank of China hiked reserve requirements for FX forwards Friday, the Yuan resumed its slide. We’ve gotten messages from our readers who are confused about why USD/JPY is rising and not falling on trade tensions and why the price gold is sliding and not strengthening. The general belief is that the Japanese Yen should rise on risk aversion but the Yen is not behaving like a safe haven currency because Japan is heavily exposed to the trade war. Looking ahead, there are no major U.S economic reports scheduled for release today but with U.S– Chinese trade tensions running high, the focus will be on the headlines. The worst performing currency yesterday was sterling as talk of a no-deal Brexit grows. Over the weekend, UK Trade Minister Fox said “the intransigence of the commission is pushing us towards no deal” and today, UK Government spokesman James Slack said Prime Minister May believes no deal is better than a bad deal. While they are still confident that a Brexit deal can be reached, the government is preparing for the possibility of no agreement. BoE Governor Carney acknowledged this risk last week and the broader government is starting to do so as well. GBP/USD fell to an 11 month low on the back of these headlines and with the 1.30 support level broken, the next stop for the pair could be its 1-year low of 1.2775. Meanwhile the Euro fell following weaker than expected German factory. The pair fell for the 5th consecutive trading session after manufacturing orders dropped by the largest amount in 4 years. Despite the weakness of the euro, demand from non-eurozone nations fell sharply on trade uncertainty. On a year over year basis, sales fell for the first time since July 2016. This decline reflects the fall in investor confidence and business expectations. Given this drop, tomorrow’s German industrial production and trade balance numbers could also take a hit.

 

 

Time(GMT)   Economic Release IMP Actual Forecast Prior
00:00 Japan Labor Cash Earnings (YoY) (JUN) Medium 1.7% 2.1%
04:30 RBA Cash Rate Target (AUG 7) High 1.50% 1.50%
05:00 Japan Leading Index CI (JUN) Medium 105.3 106.9
06:00 German Trade Balance (JUN) Medium 20.8b 19.7b
06:00 German Industrial Production n.s.a. and w.d.a. (YoY) (JUN) Medium 3.0% 3.1%
06:00 Switzerland UBS Real Estate Bubble Index (2Q) Medium 1.1
07:30 U.K Halifax House Prices (MoM) (JUL) Low 0.2% 0.3%
14:00 U.S JOLTS Job Openings (JUN) Low 6625 6638
19:00 U.S Consumer Credit (JUN) Medium $15.0b $24.559b
23:50 Japan Trade Balance – BOP Basis (Yen) (JUN) Medium ¥822.0b -¥303.8b
23:50 Japan Bank Lending incl Trusts (YoY) (JUL) Medium 2.2%

 

 

Euro

The single currency was steady yesterday but a stalling continental economy means the single currency will set new lows against the Dollar before the summer is out, according to analysts. Bearish calls on the Euro come at a time when currency markets are taking their lead from the relative performance of national economies. Overall, the EUR/USD traded with a low of 1.1528 and a high of 1.1569 before closing the day around 1.1555 in the New York session.

 

Yen

The Japanese Yen pair quickly reversed an early European session dip to 111.20 and spiked to fresh session tops in the last hour. The US Dollar continued scaling higher at the start of a new trading week and was seen as one of the key factors that helped the pair to hold above Friday’s low, touched in the aftermath of disappointing headline NFP print.  Overall, the USD/JPY traded with a low of 111.14 and a high of 111.50 before closing the day around 111.41 in the U.S session.

 

British Pound

The British Pound fell to an 11-month low on Monday on renewed fears of a hard Brexit in March 2019. The biggest story of the day was the continued slide in cable which hit fresh 11 month highs as it dipped below towards $1.2950 support on renewed fears of a hard Brexit. A so-called ‘hard Brexit’ would leave the U.K. without a predefined agreement. Overall, the GBP/USD traded with a low of 1.2918 and a high of 1.3004 before closing the day at 1.2945 in the New York session.

 

Canadian Dollar

The Canadian Dollar is on the cusp of a rebound against its major rivals now momentum within the economy is picking up, according to some analysts. Sentiment toward the Canadian currency has improved in recent weeks, particularly after official data showed economic growth surging in May and exports rising at a rapid clip during June. Overall, USD/CAD traded with a low of 1.2985 and a high of 1.3037 before closing the day at 1.3004 in the New York session.

 

Australian Dollar

The Australian Dollar edged higher yesterday as traders took up positions ahead of the latest Reserve Bank of Australia (RBA) interest rate decision but analyst commentary suggests the announcement is unlikely to provide the antipodean unit with impetus for further gains. Consensus is for the RBA to hold its interest rate at a record low of 1.5% in August. Overall, AUD/USD traded with a low of 0.7372 and a high of 0.7403 before closing the day at 0.7388 in the New York session.

 

Euro-Yen

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 40 and lies below the neutral zone. In general, the pair has gained 0.01%.

  

Sterling-Yen

Currently, GBP/JPY is trading above 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 0.32%.

  

Aussie-Yen

Currently, the cross is trading above 14, 50 and 100 days moving average. Fast stochastic is giving a bearish tone and MACD is also indicating a bearish stance. The Relative Strength Index is above 47 reading and lies below the neutral region. In general, the pair has lost 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 issuing a bullish signal. The Relative Strength Index is above 60 and lies above the neutral region. On the whole, the pair has gained 0.34%.

 

Sterling-Swiss

This cross is trading above 14, 50 and below 100 days moving average. Fast stochastic is issuing a bearish stance and MACD is indicating a bullish tone. The Relative Strength Index is above 33 and lies below the neutral region. In general, the pair has lost 0.18%.

 

Appendix

  

FOREX Closing Prices for August 06, 2018
Currency Open High Low Close Net Chg
EUR/USD 1.15632 1.1569 1.15287 1.15552 -0.0012
USD/JPY 111.225 111.508 111.148 111.415 0.1330
GBP/USD 1.29989 1.30042 1.29181 1.29457 -0.0057
USD/CHF 0.99433 0.99829 0.99403 0.99671 0.0023
USD/CAD 1.30146 1.30374 1.29851 1.30049 0.0009
EUR/JPY 128.627 128.859 128.483 128.726 0.0140
GBP/JPY 144.596 144.711 144.018 144.224 -0.4680
CHF/JPY 111.825 111.927 111.601 111.795 -0.1330
AUD/JPY 82.255 82.394 82.142 82.307 -0.0130
EUR/GBP 0.88935 0.89348 0.88882 0.89267 0.0030
EUR/CHF 1.14989 1.15263 1.14954 1.15167 0.0015
GBP/CHF 1.29268 1.294 1.28856 1.29063 -0.0024

 

 

 

Daily Pivot Points
  Trading Range  
Contract S3 S2 S1 Pivot R1 R2 R3
EUR/USD 1.1493 1.1511 1.1533 1.1551 1.1573 1.1591 1.1614
USD/JPY 110.85 111.00 111.21 111.36 111.57 111.72 111.93
GBP/USD 1.2822 1.2870 1.2908 1.2956 1.2994 1.3042 1.3080
USD/CHF 0.9901 0.9921 0.9944 0.9963 0.9987 1.0006 1.0029
USD/CAD 1.2929 1.2957 1.2981 1.3009 1.3033 1.3061 1.3085
EUR/JPY 128.14 128.31 128.52 128.69 128.90 129.07 129.27
GBP/JPY 143.23 143.62 143.92 144.32 144.62 145.01 145.31
CHF/JPY 111.30 111.45 111.62 111.77 111.95 112.10 112.27
AUD/JPY 81.92 82.03 82.17 82.28 82.42 82.53 82.67
EUR/GBP 0.8852 0.8870 0.8898 0.8917 0.8945 0.8963 0.8992
EUR/CHF 1.1468 1.1482 1.1499 1.1513 1.1530 1.1544 1.1561
GBP/CHF 1.2827 1.2856 1.2881 1.2911 1.2936 1.2965 1.2990

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

 

 

Disclaimer

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

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

 

 

06 Ago 2018

Daily  Market View

   

 Daily  Market View

 Monday, August 06, 2018
          U.S Stock Market

 

DJIA S & P 500 NASDAQ
25418 2840.50 7403.00
+0.54% +0.46% +0.12%

U.S stocks rose Friday after the Labor Department said hiring remained solid in July and strong quarterly earnings continued to boost the market. U.S. employers added 157,000 jobs last month, fewer than analysts expected. But the Labor Department said more jobs were added in May and June than it previously reported. That made up for the shortfall in July. There was little reaction to China’s threat to put tariffs on $60 billion in U.S. goods. Larger multinational companies climbed while smaller, U.S.-focused companies lagged the rest of the market. That’s the opposite of what generally happens when investors are worried about trade tensions. Bond prices edged higher, sending yields lower. Food companies and other big-dividend stocks rose. The S&P 500 index rose 13.13 points, or 0.5 per cent. The Dow Jones Industrial Average gained 136.42 points, or 0.5 per cent. The NASDAQ rose 9.33 points, or 0.1 per cent.

 

 

 

Major Economic Releases for Today
Period Event GMT Forecast Previous

aug

New Zealand Dairy Auction Avg. Winning Price MT $3,222

jul

Australia TD Securities Inflation (YoY) 01:00 2.0%

jun

German Factory Orders n.s.a. (YoY) 06:00 4.4%

jul

Markit Germany Construction PMI 07:30 53

aug

Switzerland Domestic Sight Deposits 08:00 476.5b

aug

Euro-Zone Sentix Investor Confidence 08:30 12.1

jul

Australia AiG Performance of Construction Index 22:30 50.6

jul

U.K BRC Sales Like-For-Like (YoY) 23:01 1.1%

jun

Japan Overall Household Spending (YoY) 23:30 -3.9%
Dow Jones Industrial Average

The Dow Jones Industrial Average rose 0.54% on Friday. The best performers of the session on the Dow Jones Industrial Average were International Business Machines, which rose 3.32% or 4.74 points to trade at 147.70 at the close. Meanwhile, Pfizer Inc. added 2.24% or 0.89 points to end at 40.54 and Walt Disney Company was up 1.19% or 1.34 points to 114.09 in late trade. The worst performers of the session were Boeing Co, which fell 0.37% or 1.29 points to trade at 348.44 at the close. United Technologies Corporation declined 0.17% or 0.23 points to end at 133.89 and Home Depot Inc. was down 0.01% or 0.02 points to 195.64.

 

NASDAQ 100

The tech heavy NASDAQ index gained 0.12%. The top performers on the NASDAQ Composite were Oxbridge Re Holdings Ltd which rose 31.43% to 2.30, Pixelworks Inc. which was up 28.99% to settle at 4.205 and Universal Electronics Inc. which gained 26.26% to close at 44.95. The worst performers were Helios and Matheson Analytics Inc. which was down 30.00% to 0.070 in late trade, Varex Imaging Corp which lost 26.32% to settle at 28.36 and Immersion Corporation which was down 24.24% to 10.78 at the close.

 

Oil

Crude futures pulled back on Friday, giving up gains from the previous session as trade concerns weighed on the market and fueled concerns about demand. U.S. West Texas Intermediate (WTI) crude futures settled down 47 cents at $68.49 a barrel. U.S. crude ended the week down 0.4 percent, while Brent has fallen 1.5 percent in the week so far. Fears that Chinese demand could taper fueled the pullback on Friday after state oil major Sinopec cut its purchases of U.S. crude. China’s Unipec, the trading arm of Sinopec, has suspended crude oil imports from the United States due to the growing trade spat between Washington and Beijing, three sources familiar with the situation said on Friday. Chinese demand from the independent refiners is also lower while the escalating trade war also doesn’t help sentiment. China has said it plans to impose tariffs on liquefied natural gas, raising concerns that it could also impose tariffs on oil.

 

Precious and Base Metals

Gold rallied 1 percent on Friday, after falling to the lowest in nearly 17 months when weaker-than-expected U.S. jobs data pushed the dollar lower and a move by the Chinese central bank lifted its currency. Spot gold was up 0.60 percent at $1,214.79 an ounce, after rallying 1 percent to $1,220.01. Earlier it dropped to $1,204, the lowest since March 15, 2017. U.S. gold futures settled up 0.3 percent at $1,223.20 an ounce. I think the move up is temporary here. It was the miss in the jobs number and tells you that the jobs market may not be on easy street. It may be having a bump in the road right now. The dollar index turned negative after data showed U.S. job growth slowed more than expected in July. Earlier, the dollar had climbed to a two-week high against a basket of major currencies and scaled a 14-month peak versus the Chinese Yuan. China’s offshore Yuan also reversed, rising sharply after its central bank acted to curb short selling of the currency. Spot gold, which was on track to close the week down 0.3 percent, its seventh weekly decline in the past eight, may fall toward the next support at $1,194, as it has resumed its downtrend from $1,309.30. Gold is getting cheap and positioning wise; that should be a reason for bottoming out. The shorts are relatively big. Speculators will probably want to test the $1,200 level. Weighing on the market was a report by the World Gold Council showing that global demand fell 6 percent in the first half of the year to the lowest for the period since 2009. As long as the dollar remains strong – we believe another couple of months – demand should stay soft and prices should trade rather range-bound. Among other precious metals, silver rose 0.7 percent to $15.41 an ounce, but closed the week lower for the eighth straight week.

 

 

 

Traditional Agricultures

Wheat futures retreated as traders cashed in profits as concerns about weather-reduced harvests in Europe and the Black Sea region lifted prices sharply earlier in the week. Soybean futures staged a late-session short-covering recovery on Friday after touching a one-week low amid worries about an escalating trade war between the United States and China. Corn firmed on expectations that hot, dry weather in the U.S Midwest may limit yield potential.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Futures Settlement Price Friday, August 03, 2018
Instrument Contract Open High Low Settlement Net Change
DJIA DJM18 25326 25434 25258 25418 115
S & P 500 SPM18 2830.5 2840.5 2824.75 2840.5 12.25
NASDAQ 100 NDM18 7391.5 7414.5 7362 7403 17.75
Hang Seng HSH18 27738 27738 27523 27619 20
Nikkei 225 NKH18 22580 22610 22440 22500 5
FTSE 100 FTH18 7552 7620 7528 7617.5 53
Gold GCJ18 1216.7 1228.2 1212.2 1223.4 7.6
Silver SIK18 1531.5 1556 1524 1548 17
Copper HGK18 272.65 278.35 270.9 276.8 4.15
Crude Oil CLK18 68.95 69.2 67.84 68.55 -0.4
Wheat WK18 561.5 567.25 553.5 557.25 -3.75
Soybeans SK18 885.5 892.25 872.75 892.25 5.25
Corn CK18 366.75 370.75 364.5 370.5 3.75

 

 

 

DJM18 25130 25194 25306 25370 25482 25546 25658
SPM18 2814.25 2819.50 2830.00 2835.25 2845.75 2851.00 2861.50
NDM18 7319.33 7340.67 7371.83 7393.17 7424.33 7445.67 7476.83
HSH18 27300 27412 27515 27627 27730 27842 27945
NKH18 22253 22347 22423 22517 22593 22687 22763
FTH18 7465.00 7496.50 7557.00 7588.50 7649.00 7680.50 7741.00
GCJ18 1198.33 1205.27 1214.33 1221.27 1230.33 1237.27 1246.33
SIK18 1497.33 1510.67 1529.33 1542.67 1561.33 1574.67 1593.33
HGK18 264.90 267.90 272.35 275.35 279.80 282.80 287.25
CLK18 66.50 67.17 67.86 68.53 69.22 69.89 70.58
WK18 537.67 545.58 551.42 559.33 565.17 573.08 578.92
SK18 859.75 866.25 879.25 885.75 898.75 905.25 918.25
CK18 360.17 362.33 366.42 368.58 372.67 374.83 378.92

 

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.

 

 

 

 

 

 

06 Ago 2018

FOREX Newsletter

 

FOREX Newsletter

August 06, 2018

 

Pulse of the Market

·      U.S Job growth slowed in the month of July but the June data was revised upwards

·      The sell-off in the Euro last week was mainly a function of U.S Dollar strength

·      Sterling extended its losses on Friday on the back of weaker service sector activity

·      The Australian Dollar ticked higher on the back of the recovery in the Chinese Yuan

Like the Federal Reserve’s monetary policy announcement, the U.S non-farm payrolls report failed to help the dollar. The jobs report wasn’t terrible but on a day when USD/JPY was already weak, the data miss in NFP and non-manufacturing ISM gave bulls a stronger reason to bail. Job growth slowed in the month of July from 248K to 157K but the June data was revised upwards. The unemployment rate also declined and average hourly earnings grew at a faster pace. U.S. – China trade tensions have taken a significant toll on USD/JPY. Earlier this week, the U.S. government proposed $200B in fresh tariffs on Chinese goods and today, China responded with $60B in retaliatory tariffs. They also boosted the reserve requirement on foreign currency forwards from 0 to 20% in an attempt to curb Renminbi weakness and the Yen rose alongside the Yuan. The trade war is far from over and headline risk is limiting demand for USD/JPY and putting pressure on pairs like EUR/USD and GBP/USD. For the first time in more than a month, EUR/USD closed below 1.16. The sell-off in the euro this week was mainly a function of U.S. dollar strength as Eurozone fundamentals took back seat to bigger stories. Data from the Eurozone was mostly weaker with stronger inflation offset by falling confidence, weakening growth and slower gains in retail sales. Germany’s trade balance is the only important report on next week’s calendar. Technically the pair is vulnerable to additional losses after having ended the week at a 1 month low. We expect EUR/USD to test 1.15 and we are watching EUR/JPY for a possible move down to 128. Sterling extended its losses on Friday on the back of weaker service sector activity and fresh comments from Bank of England Governor Carney. He said “one hike a year isn’t a bad rule of thumb” and the “chance of a no deal Brexit is uncomfortably high.” “Some scenarios may require a rate cut.” Although the BoE raised interest rates by 25bp this month, all this talk of possible easing in a tightening cycle makes investors nervous so unless there’s progress on Brexit negotiations or data takes a turn for the better, GBP/USD will fall to fresh 1 year lows. Second quarter GDP, trade balance and industrial production numbers are scheduled for release on Friday.

 

 

Time(GMT)   Economic Release IMP Actual Forecast Prior
New Zealand Dairy Auction Avg. Winning Price MT (AUG 7) Medium $3,222
New Zealand Dairy Auction Whole Milk Powder MT (AUG 7) Medium $2,973
01:00 Australia TD Securities Inflation (YoY) (JUL) Medium 2.0%
06:00 German Factory Orders n.s.a. (YoY) (JUN) Medium 4.4%
07:30 Markit Germany Construction PMI (JUL) Medium 53
08:00 Switzerland Total Sight Deposits CHF (AUG 3) Low 576.4b
08:00 Switzerland Domestic Sight Deposits CHF (AUG 3) Low 476.5b
08:30 Euro-Zone Sentix Investor Confidence (AUG) Low 12.1
22:30 Australia AiG Performance of Construction Index (JUL) Medium 50.6
23:01 U.K BRC Sales Like-For-Like (YoY) (JUL) Low 1.1%
23:30 ANZ Roy Morgan Weekly Consumer Confidence Index (AUG 5) Low 119.8
23:30 Japan Overall Household Spending (YoY) (JUN) Medium -3.9%

 

Euro

The single currency fell in Friday’s trading session as retail sales in the 19 countries sharing the euro currency rose by less than expected, data from the European statistics office Eurostat showed on Friday. Business activity in the euro zone lost some momentum at the start of the third quarter, hampered by a drop in new orders. Overall, the EUR/USD traded with a low of 1.1558 and a high of 1.1609 before closing the day around 1.1567 in the New York session.

 

Yen

The Japanese Yen is headed for smoother sailing, at least in the view of options traders. Implied volatility — expectations of price swings derived from options contracts — dropped to the lowest in nearly a month for the currency after the Bank of Japan became the latest central bank to begin issuing forward guidance.  Overall, the USD/JPY traded with a low of 111.08 and a high of 111.85 before closing the day around 111.28 in the U.S session.

 

British Pound

The British Pound fell below $1.30 against the U.S Dollar in Friday’s trading session after Bank of England Governor Mark Carney said possibility of a no deal at the moment is uncomfortably high. It is highly undesirable, parties should do all things to avoid it. The pound dropped significantly against both the dollar and the euro in response. Overall, the GBP/USD traded with a low of 1.2973 and a high of 1.3041 before closing the day at 1.3002 in the New York session.

 

Canadian Dollar

The Canadian Dollar strengthened to a seven-week high against its U.S. counterpart on Friday after domestic data showing a record high for exports helped narrow the gap in yield between Canadian and U.S. bonds. Canadian exports shrugged off the effects of U.S. metals tariffs to rise 4.1 per cent in June, cutting the country’s trade deficit to its lowest level in 17 months. Overall, USD/CAD traded with a low of 1.2965 and a high of 1.3036 before closing the day at 1.2996 in the New York session.

 

Australian Dollar

The Australian Dollar finished higher versus the U.S Dollar last week. The price action was mostly two-sided. Investors reacted to the escalation of the trade dispute between the United States and China, the divergence between the hawkish U.S Federal Reserve and the dovish Reserve Bank of Australia and mixed U.S. employment data. Overall, AUD/USD traded with a low of 0.7346 and a high of 0.7409 before closing the day at 0.7399 in the New York session.

 

Euro-Yen

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 40 and lies below the neutral zone. In general, the pair has lost 0.47%.

 

Sterling-Yen

Currently, GBP/JPY is trading above 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 37 reading and lies below the neutral zone. On the whole, the pair has lost 0.42%.

  

Aussie-Yen

Currently, the cross is trading above 14, 50 and 100 days moving average. Fast stochastic is giving a bearish tone and MACD is also indicating a bearish stance. The Relative Strength Index is above 48 reading and lies below the neutral region. In general, the pair has gained 0.21%.

  

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 issuing a bullish signal. The Relative Strength Index is above 55 and lies above the neutral region. On the whole, the pair has lost 0.02%.

 

Sterling-Swiss

This cross is trading above 14, 50 and below 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 0.17%.

Appendix

  

FOREX Closing Prices for August 03, 2018
Currency Open High Low Close Net Chg
EUR/USD 1.15862 1.16092 1.15587 1.15674 -0.0015
USD/JPY 111.617 111.856 111.082 111.282 -0.3570
GBP/USD 1.30171 1.30415 1.29736 1.30027 -0.0011
USD/CHF 0.99511 0.99638 0.9919 0.99442 -0.0007
USD/CAD 1.30215 1.30369 1.29657 1.29961 -0.0025
EUR/JPY 129.335 129.511 128.653 128.712 -0.6140
GBP/JPY 145.344 145.523 144.486 144.692 -0.6110
CHF/JPY 112.16 112.318 111.818 111.928 -0.2270
AUD/JPY 82.146 82.592 82.081 82.32 0.1760
EUR/GBP 0.88994 0.89172 0.88916 0.88968 -0.0002
EUR/CHF 1.15284 1.15397 1.14951 1.15015 -0.0028
GBP/CHF 1.29524 1.2965 1.29107 1.29299 -0.0022

 

  

Daily Pivot Points
  Trading Range  
Contract S3 S2 S1 Pivot R1 R2 R3
EUR/USD 1.1497 1.1528 1.1548 1.1578 1.1598 1.1629 1.1649
USD/JPY 110.18 110.63 110.96 111.41 111.73 112.18 112.51
GBP/USD 1.2902 1.2938 1.2970 1.3006 1.3038 1.3074 1.3106
USD/CHF 0.9876 0.9898 0.9921 0.9942 0.9966 0.9987 1.0010
USD/CAD 1.2891 1.2928 1.2962 1.3000 1.3033 1.3071 1.3105
EUR/JPY 127.55 128.10 128.41 128.96 129.26 129.82 130.12
GBP/JPY 143.24 143.86 144.28 144.90 145.31 145.94 146.35
CHF/JPY 111.22 111.52 111.72 112.02 112.22 112.52 112.72
AUD/JPY 81.56 81.82 82.07 82.33 82.58 82.84 83.09
EUR/GBP 0.8861 0.8876 0.8887 0.8902 0.8912 0.8927 0.8938
EUR/CHF 1.1440 1.1468 1.1485 1.1512 1.1529 1.1557 1.1574
GBP/CHF 1.2851 1.2881 1.2905 1.2935 1.2960 1.2990 1.3014

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.

 

 

03 Ago 2018

FOREX Newsletter

   

FOREX Newsletter

August 03, 2018

 

Pulse of the Market

·      The U.S Department of Labor reported that initial jobless claims rose by 1,000 to 217,000

·      The Dollar pared losses against the yen following an increase in demand for safe-haven currencies

·      The pound extended losses on Thursday after the Bank of England raised interest rates

·      The Canadian dollar edged lower against its broadly stronger U.S. counterpart yesterday

 

The Dollar rose against its rivals yesterday on upbeat labor market data and a slump in the pound, despite the Bank of England raising rates for the first time this year. The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, rose by 0.40% to 94.84. The U.S. Department of Labor reported Thursday that initial jobless claims rose by 1,000 to a seasonally-adjusted 217,000 for the week ended July 27, beating economists’ forecast for a rise to 218,000. The upbeat labor market report comes a day ahead of the closely-watched nonfarm payrolls report expected to show the U.S. economy created 193,000 jobs in July. The dollar’s advance was helped by a slump in the pound as the Bank of England raised rates but signaled that it was in no hurry to raise rates again, warning that a lack of progress on Brexit talks could impact monetary policy decisions. It is almost unthinkable that the Bank of England will follow up with further rate rises in the next few months given the risks on the horizon. The dollar pared losses against the yen, which followed an increase in demand for safe-haven currencies like the yen and Swiss franc on rising U.S.-China trade tensions. U.S. President Donald Trump proposed a higher 25% tariff on $200 billion worth of Chinese imports, his administration said on Wednesday, raising fears of an escalating trade-war between the world’s two largest economies, which could hit global growth. The Canadian dollar edged lower against its broadly stronger U.S. counterpart on Thursday as oil and stock prices fell following a flare-up in the trade tensions between the United States and China. The U.S Dollar rose against a basket of major currencies after U.S. administration officials said on Wednesday that President Donald Trump was proposing a 25 per cent tariff on $200 billion worth of Chinese imports.

 

 

Time(GMT)   Economic Release IMP Actual Forecast Prior
00:30 Nikkei Japan PMI Services (JUL) Medium     51.4
01:30 Australia Retail Sales (MoM) (JUN) Low   0.3% 0.4%
01:30 Australia Retail Sales Ex Inflation (QoQ) (2Q) Medium   0.8% 0.2%
01:45 Caixin China PMI Services (JUL) Medium   53.5 53.9
07:15 Switzerland Consumer Price Index (YoY) (JUL) Medium   1.2% 1.1%
07:55 Markit Germany Services PMI (JUL) Low   54.4 54.4
08:00 Markit Eurozone Services PMI (JUL) Low   54.4 54.4
08:30 Markit/CIPS UK Services PMI (JUL) Medium   54.7 55.1
09:00 Euro-Zone Retail Sales (YoY) (JUN) Medium   1.4% 1.4%
12:30 U.S Trade Balance (JUN) Medium   -$46.1b -$43.1b
12:30 U.S Change in Non-farm Payrolls (JUL) High   192k 213k
12:30 U.S Change in Private Payrolls (JUL) Medium   185k 202k
12:30 U.S Unemployment Rate (JUL) High   3.9% 4.0%
12:30 U.S Average Hourly Earnings (YoY) (JUL) Medium   2.7% 2.7%
14:00 U.S ISM Non-Manufacturing/Services Composite (JUL) High   58.6 59.1
17:00 Baker Hughes U.S. Rig Count (3 AUG) Medium     1048

 

Euro

The single currency fell almost half a percent as the dollar rose against a basket of currencies yesterday, following a flare-up in trade tensions between the United States and China drove traders to buy the U.S currency. The dollar index, which measures the greenback against a basket of six other currencies, was up 0.32 percent at 94.931. Overall, the EUR/USD traded with a low of 1.1580 and a high of 1.1666 before closing the day around 1.1582 in the New York session.

 

Yen

The Japanese Yen strengthened against all major currencies. The Japanese yen made small gains versus the US dollar. Trading volumes in the yen fell yesterday relative to volumes seen on Tuesday (following the latest Bank of Japan meeting). Looking recent developments, BOJ Deputy Governo Amamiya delivered a speech earlier today.  Overall, the USD/JPY traded with a low of 111.29 and a high of 111.71 before closing the day around 111.63 in the U.S session.

 

British Pound

The British Pound extended losses yesterday after the Bank of England raised interest rates from crisis era lows but was cautious about any further tightening with an uncertain Brexit on the horizon. A broadly rallying dollar also hit the pound. Sterling fell as much as 0.8 percent before Governor Mark Carney gave his post-rate decision news conference. Overall, the GBP/USD traded with a low of 1.3012 and a high of 1.3126 before closing the day at 1.3014 in the New York session.

 

Canadian Dollar

The Canadian Dollar edged lower against its broadly stronger U.S. counterpart yesterday as oil and stock prices fell following a flare-up in the trade tensions between the United States and China. The price of oil, one of Canada’s major exports, was pressured by trade tensions. and a surprise increase in U.S crude inventories. Overall, USD/CAD traded with a low of 1.2991 and a high of 1.3037 before closing the day at 1.3021 in the New York session.

 

Australian Dollar

The Australian Dollar showed its sensitivity to global trade prospects again after it gave up ground in the wake of US President Donald Trump reportedly considering an increase in duties on Chinese imports. President Trump has instructed US trade representatives to increase the tariffs it levies on around $200 billion of Chinese exports, from 10% to 25%. Overall, AUD/USD traded with a low of 0.7388 and a high of 0.7427 before closing the day at 0.7402 in the New York session.

 

Euro-Yen

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 45 and lies below the neutral zone. In general, the pair has lost 0.71%.

 

Sterling-Yen

Currently, GBP/JPY is trading above 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 0.89%.

  

Aussie-Yen

Currently, the cross is trading above 14, 50 and 100 days moving average. Fast stochastic is giving a bearish tone and MACD is also indicating a bearish stance. The Relative Strength Index is above 46 reading and lies below the neutral region. In general, the pair has lost 0.66%.

 

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 issuing a bullish signal. The Relative Strength Index is above 56 and lies above the neutral region. On the whole, the pair has gained 0.19%.

 

Sterling-Swiss

This cross is trading above 14, 50 and below 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 0.51%.

Appendix

  

FOREX Closing Prices for August 02, 2018
Currency Open High Low Close Net Chg
EUR/USD 1.16587 1.16662 1.15808 1.15829 -0.0075
USD/JPY 111.709 111.719 111.298 111.639 -0.0630
GBP/USD 1.31189 1.31268 1.30126 1.3014 -0.0111
USD/CHF 0.99223 0.99544 0.99135 0.99509 0.0031
USD/CAD 1.30023 1.30372 1.29917 1.30215 0.0020
EUR/JPY 130.261 130.271 129.228 129.326 -0.9200
GBP/JPY 146.555 146.635 144.982 145.303 -1.3090
CHF/JPY 112.546 112.629 111.889 112.155 -0.4250
AUD/JPY 82.684 82.71 81.927 82.144 -0.5420
EUR/GBP 0.88838 0.8923 0.88529 0.88984 0.0017
EUR/CHF 1.15661 1.15691 1.15281 1.15295 -0.0035
GBP/CHF 1.30172 1.30377 1.29379 1.29518 -0.0066

 

 

 

Daily Pivot Points
  Trading Range  
Contract S3 S2 S1 Pivot R1 R2 R3
EUR/USD 1.1468 1.1525 1.1554 1.1610 1.1639 1.1695 1.1725
USD/JPY 110.96 111.13 111.39 111.55 111.81 111.97 112.23
GBP/USD 1.2861 1.2937 1.2975 1.3051 1.3090 1.3165 1.3204
USD/CHF 0.9884 0.9899 0.9925 0.9940 0.9966 0.9981 1.0007
USD/CAD 1.2951 1.2971 1.2996 1.3017 1.3042 1.3062 1.3087
EUR/JPY 127.90 128.57 128.95 129.61 129.99 130.65 131.03
GBP/JPY 142.99 143.99 144.65 145.64 146.30 147.29 147.95
CHF/JPY 111.08 111.48 111.82 112.22 112.56 112.96 113.30
AUD/JPY 81.03 81.48 81.81 82.26 82.59 83.04 83.38
EUR/GBP 0.8790 0.8821 0.8860 0.8891 0.8930 0.8962 0.9000
EUR/CHF 1.1474 1.1501 1.1515 1.1542 1.1556 1.1583 1.1597
GBP/CHF 1.2814 1.2876 1.2914 1.2976 1.3014 1.3076 1.3114

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.

 

 

03 Ago 2018

Daily  Market View

             

Daily  Market View

Friday, August 03, 2018
          U.S Stock Market

 

DJIA S & P 500 NASDAQ
25303 2828.25 7385.25
-0.03% +0.49% +1.24%

U.S stocks closed mostly higher yesterday on the back of strong technology shares. Apple became the first company to top $1 trillion in market value on Thursday, leading a rebound in technology stocks that helped Wall Street pare losses and turned the NASDAQ positive. Market sentiment was also lifted by Commerce Secretary Wilbur Ross’s comment, who said the tariffs that United States is threatening to impose on Chinese goods would not be disastrous for the Asian nation. Technology stocks, which were trading lower earlier in the session, rose 0.4 percent. Apple hit a record high of $207.05, crowning a decade-long rise fueled by its ubiquitous iPhone that transformed it from a niche player in personal computers into a global powerhouse spanning entertainment and communications. The trade-sensitive industrial sector fell 0.38 percent. Caterpillar, Boeing and 3M fell more than 1 percent and weighed on the Dow Jones Industrial Average. The Federal Reserve kept interest rates unchanged on Wednesday, but characterized the economy as strong.

 

Major Economic Releases for Today
Period Event GMT Forecast Previous

jul

Nikkei Japan PMI Services 00:30   51.4

jul

Caixin China PMI Services 01:45 53.5 53.9

jul

Markit/CIPS UK Services PMI 08:30 54.7 55.1

jun

Euro-Zone Retail Sales (YoY) 09:00 1.4% 1.4%

jun

U.S Trade Balance 12:30 -$46.1b -$43.1b

jul

U.S Change in Non-farm Payrolls 12:30 192k 213k

jul

U.S Unemployment Rate 12:30 3.9% 4.0%

jul

U.S Average Hourly Earnings (YoY) 12:30 2.7% 2.7%

jul

U.S ISM Non-Manufacturing/Services Composite 14:00 58.6 59.1
Dow Jones Industrial Average

The Dow Jones Industrial Average fell 0.03% yesterday. The biggest gainers of the session on the Dow Jones Industrial Average were Apple Inc., which rose 2.92% or 5.89 points to trade at 207.39 at the close. Procter & Gamble Company added 1.67% or 1.35 points to end at 82.00 and Cisco Systems Inc. was up 1.60% or 0.67 points to 42.53 in late trade. Biggest losers included DowDuPont Inc., which lost 2.24% or 1.52 points to trade at 66.44 in late trade. Chevron Corp declined 1.30% or 1.63 points to end at 123.76 and Johnson & Johnson shed 1.05% or 1.39 points to 131.25.

 

NASDAQ 100

The tech heavy NASDAQ index climbed 1.24% yesterday. The top performers on the NASDAQ Composite were Boingo Wireless Inc. which rose 41.52% to 32.86, DexCom Inc. which was up 30.65% to settle at 124.69 and Wi-LAN Inc. which gained 28.70% to close at 1.390. The worst performers were Helios and Matheson Analytics Inc. which was down 56.14% to 0.100 in late trade, ReShape Lifesciences Inc. which lost 51.76% to settle at 0.5306 and Cross Country Healthcare Inc. which was down 31.62% to 8.11 at the close.

Oil

Oil prices strengthened yesterday, with U.S crude gaining nearly 2 percent after traders saw an industry report suggesting domestic crude stockpiles would soon decline again after a surprise rise in the latest week. Pices rallied early when industry information provider Genscape reported that crude inventories at the Cushing, Oklahoma, delivery hub for U.S. crude, dropped 1.1 million barrels since Friday, July 27. On Wednesday, prices sank when the U.S. government reported that in the prior week, total U.S. inventories rose 3.8 million barrels, while supplies at Cushing fell 1.3 million barrels. Before the Genscape report sparked a rally, futures fell early on concerns about oversupply. Saudi Arabia, Russia, Kuwait and the United Arab Emirates have increased production to help to compensate for an anticipated shortfall in Iranian crude supplies once U.S. sanctions take effect. The OPEC and partners including Russia had cut output to rebalance supply and demand.

 

Precious and Base Metals

Gold prices edged lower yesterday after an upbeat assessment of the U.S. economy by the Federal Reserve and new trade tensions between Washington and Beijing boosted the dollar and U.S. bond yields. Gold has slumped 11 percent since April to its lowest in a year as rising U.S. interest rates and the perception that trade wars will damage the United States less than other nations pushed the dollar higher. The stronger dollar hurts gold because it makes bullion more expensive for buyers with other currencies. Higher bond yields meanwhile make non-yielding gold less attractive to investors. But with the dollar up 0.4 percent against a basket of currencies, spot gold was holding fairly steady, down 0.1 percent at $1,214.51 an ounce. It looks like gold doesn’t want to go lower at the moment. U.S. gold futures were down 0.4 percent at $1,223.3 an ounce. Gold was helped by strong technical support including its low point of $1,211.08 last month, the 50 percent retracement of its rally in the first half of 2016 and the psychologically key level of $1,200 an ounce. But momentum indicators suggest prices will continue to fall. Adding to the pressure on bullion are expectations that the Federal Reserve will raise interest rates again in September. Those expectations were bolstered on Wednesday by the Fed, which praised the strength of the U.S. economy, and a jobs survey which suggested that non-farm payroll data due on Friday could beat forecasts. Higher interest rates are bad for gold because they push up bond yields and tend to boost the dollar. Gold could fall to $1,200 ahead of a September rate announcement. But after that, tightening monetary policy elsewhere could begin to push the dollar lower and help gold recover to above $1,300 next year. The Bank of England raised interest rates yesterday, while the European Central Bank also intends to wind down its stimulus measures. In other precious metals, silver was up 0.4 percent at $15.40 an ounce.

 

 

Traditional Agriculture

Wheat futures surged to three-year highs yesterday on concerns about tightening global supplies and reduced shipments from key suppliers, but the market closed well below the peaks as major exporter Ukraine denied it would ban exports.

 

 

Futures Settlement Price Thursday, August 02, 2018
Instrument Contract Open High Low Settlement Net Change
DJIA DJM18 25312 25327 25085 25303 17
S & P 500 SPM18 2813.75 2829.25 2791 2828.25 17.75
NASDAQ 100 NDM18 7287.25 7389.5 7213.75 7385.25 108.75
Hang Seng HSH18 28191 28191 27496 27599 -692
Nikkei 225 NKH18 22660 22730 22435 22495 -310
FTSE 100 FTH18 7567.5 7580 7474 7564.5 -23.5
Gold GCJ18 1225 1229.5 1215.1 1215.8 -8.5
Silver SIK18 1540.5 1548 1528.5 1531 -7
Copper HGK18 274.65 275.95 270.7 272.65 -1.6
Crude Oil CLK18 67.83 69.32 66.89 68.95 1.13
Wheat WK18 560 592.5 559.25 561 2.25
Soybeans SK18 885.25 892.75 875.25 887 -4.5
Corn CK18 366 372.25 364.25 366.75 1.75

 

Daily Swings  (The Pivot Levels)
  Trading Range  
Contract S3 S2 S1 Pivot R1 R2 R3
DJM18 24908 24996 25150 25238 25392 25480 25634
SPM18 2764.83 2777.92 2803.08 2816.17 2841.33 2854.42 2879.58
NDM18 7093.75 7153.75 7269.50 7329.50 7445.25 7505.25 7621.00
HSH18 26638 27067 27333 27762 28028 28457 28723
NKH18 22082 22258 22377 22553 22672 22848 22967
FTH18 7393.00 7433.50 7499.00 7539.50 7605.00 7645.50 7711.00
GCJ18 1196.37 1205.73 1210.77 1220.13 1225.17 1234.53 1239.57
SIK18 1504.17 1516.33 1523.67 1535.83 1543.17 1555.33 1562.67
HGK18 265.00 267.85 270.25 273.10 275.50 278.35 280.75
CLK18 65.02 65.96 67.45 68.39 69.88 70.82 72.31
WK18 516.08 537.67 549.33 570.92 582.58 604.17 615.83
SK18 859.75 867.50 877.25 885.00 894.75 902.50 912.25
CK18 355.25 359.75 363.25 367.75 371.25 375.75 379.25

   Source: – News & Quotes (Courtesy:  Reuters)     

                                                               

Disclaimer

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

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

 

 

 

 

02 Ago 2018

          

Daily Market View

Thursday, August 02, 2018
          U.S Stock Market

 

DJIA S & P 500 NASDAQ
25286 2810.50 7276.50
-0.32% -0.10% +0.46%

U.S stocks closed mostly lower yesterday after the Federal Reserve left interest rates unchanged but signaled another imminent rate increase. Fresh worries over U.S.-China trade friction dampened sentiment although positive results from Apple buoyed the tech sector and helped the NASDAQ buck the weak trend. The Dow Jones Industrial Average slid 81.37 points, or 0.3%. The S&P 500 shed 2.93 points, or 0.1%. The NASDAQ gained 35.50 points, or 0.5% which some analysts attribute to relief among investors that earnings growth among big tech firms have a not hit a wall despite weakness from a handful of companies. The S&P 500’s tech stocks rose 1%, the best performer out of the 11 sectors. The Fed kept its main interest rate unchanged at 1.75% to 2%, as widely expected, and indicated that it is likely to raise rates next month as the economy remains strong. Markets have penciled in two further rate increases for this year, in September and December. The latest data on private-sector employment showed 219,000 jobs added in July, well above expectations.

 

 

Major Economic Releases for Today
Period Event GMT Forecast Previous

jul

Switzerland SECO Consumer Confidence 05:45 2 2

jul

Switzerland PMI Manufacturing 07:30 60.9 61.6

jul

Markit/CIPS UK Construction PMI 08:30 52.8 53.1

aug

Bank of England Bank Rate 11:00 0.75% 0.50%

aug

BOE Asset Purchase Target 11:00 435b 435b

 

Bank of England Inflation Report 11:00    

jul

U.S Initial Jobless Claims 12:30 220k 217k

jun

U.S Factory Orders 14:00 0.7% 0.4%

jun

U.S Durable Goods Orders 14:00   1.0%
Dow Jones Industrial Average

The Dow Jones Industrial Average declined 0.33% yesterday. The best performers of the session on the Dow Jones Industrial Average were Apple Inc., which rose 5.17% or 9.83 points to trade at 200.12 at the close. Meanwhile, Nike Inc. added 0.88% or 0.68 points to end at 77.58 and Intel Corporation was up 0.87% or 0.42 points to 48.52 in late trade. The worst performers of the session were Caterpillar Inc., which fell 3.42% or 4.92 points to trade at 138.88 at the close. 3M Company declined 2.06% or 4.37 points to end at 207.95 and Walgreens Boots Alliance Inc. was down 1.57% or 1.06 points to 66.56.

 

NASDAQ 100

The tech heavy NASDAQ index added 0.13% yesterday. The top performers on the NASDAQ Composite were Nortech Systems Incorporated which rose 35.67% to 4.450, Rxi Pharmaceuticals Corp which was up 26.35% to settle at 1.8700 and Egalet Corp which gained 28.28% to close at 0.37. The worst performers were Helios and Matheson Analytics Inc. which was down 47.58% to 0.260 in late trade, InnerWorkings Inc. which lost 24.35% to settle at 6.70 and JMU Ltd which was down 24.08% to 1.450 at the close.

Oil

Crude fell to the lowest in more than five weeks as a surprise rise in U.S. crude inventories and increases in production from OPEC and Russia has investors worried that global supply levels are on the upswing. Futures in New York dropped 1.6 percent on Wednesday. While data from the Energy Information Administration showed U.S. crude inventories rose 3.8 million barrels last week, Saudi Arabia pumped near-record volumes in July and Russia increased its crude production to levels not seen since it joined OPEC in a coordinated output cut two years ago. Meanwhile, the U.S is considering more levies on Chinese imports, according to people familiar with the internal deliberations, imperiling demand growth. Saudi Arabia’s oil production grew by 230,000 barrels a day in July to 10.65 million barrels a day, just shy of an all-time peak reached in 2016, according to a Bloomberg survey of analysts, oil companies, and ship-tracking data.

 
Precious and Base Metals

Gold edged lower yesterday on a stronger dollar as the market waited for the result of a Federal Reserve meeting later in the day, expected to provide more signals on the direction of U.S monetary policy. Spot gold fell 0.5 percent lower to $1,217.17 per ounce, close to a one-year low of $1,211.08 reached on July 19. U.S. gold futures were 0.6 percent lower at $1,225.90 an ounce. The Fed is expected to keep rates unchanged, but solid economic growth combined with rising inflation is likely to keep it on track for another two hikes this year, sapping demand for non-interest-paying gold. People are waiting to understand what is going to happen with the Fed later but there are no signals of recovery at all for gold. The most important thing that gold is that it’s looking at two rate increases this year which is adding pressure on gold, making the scenario weak for bullion. A key support area in the short term is around $1,211-$1,215 per ounce. The U.S. dollar, in which gold is priced, rose against a basket of leading currencies after a source familiar with the Trump administration’s plans said the White House was about to propose higher tariffs on $200 billion in Chinese imports. Gold, which is usually used as a hedge against risk, bounced on the news on Tuesday to $1,228 but lost steam as the dollar advanced. The trade tensions are also fuelling safe-haven flows into the dollar. The U.S. currency still appears to be the preferred safe haven rather than gold. Bullion is falling every time the US Dollar is strengthening, but it’s unable to recover when the greenback loses ground, confirming that there’s little investor appetite for gold in this phase. Meanwhile, trade tensions also pushed world stocks lower as investors feared a trade war between Washington and Beijing could hit global growth. Hedge funds and money managers increased their net short position in COMEX gold contracts to a record in the week to July 24, U.S CFTC data showed on Friday. In other precious metals, silver declined 0.8 percent to $15.40 an ounce.

 

 

Traditional Agricultures

Soybean futures fell yesterday as worries that U.S President Donald Trump could propose additional tariffs on Chinese goods knocked prices down from a six-week high touched a session earlier.

 

Futures Settlement Price Wednesday, August 01, 2018
Instrument Contract Open High Low Settlement Net Change
DJIA DJM18 25459 25469 25246 25286 -151
S & P 500 SPM18 2824.5 2825.5 2805.5 2810.5 -13.5
NASDAQ 100 NDM18 7292.5 7303.5 7240.75 7276.5 14.25
Hang Seng HSH18 28666 28714 28159 28291 -137
Nikkei 225 NKH18 22605 22805 22590 22805 275
FTSE 100 FTH18 7679 7696 7569.5 7588 -93.5
Gold GCJ18 1232.9 1233.5 1224.2 1224.3 -8.4
Silver SIK18 1553.5 1554.5 1538 1538 -15
Copper HGK18 282.4 282.8 272.6 274.25 -8.35
Crude Oil CLK18 68.39 68.48 67.28 67.82 -0.57
Wheat WK18 552.25 565.5 550.25 558.75 5.25
Soybeans SK18 897 904 888.75 891.5 -16
Corn CK18 370.5 372.5 363.75 365 -7

 

 

Daily Swings  (The Pivot Levels)
  Trading Range  
Contract S3 S2 S1 Pivot R1 R2you
DJM18 24975 25111 25198 25334 25421 25557 25644
SPM18 2782.17 2793.83 2802.17 2813.83 2822.17 2833.83 2842.17
NDM18 7180.92 7210.83 7243.67 7273.58 7306.42 7336.33 7369.17
HSH18 27507 27833 28062 28388 28617 28943 29172
NKH18 22447 22518 22662 22733 22877 22948 23092
FTH18 7413.17 7491.33 7539.67 7617.83 7666.17 7744.33 7792.67
GCJ18 1211.87 1218.03 1221.17 1227.33 1230.47 1236.63 1239.77
SIK18 1516.00 1527.00 1532.50 1543.50 1549.00 1560.00 1565.50
HGK18 260.10 266.35 270.30 276.55 280.50 286.75 290.70
CLK18 66.04 66.66 67.24 67.86 68.44 69.06 69.64
WK18 535.58 542.92 550.83 558.17 566.08 573.42 581.33
SK18 870.25 879.50 885.50 894.75 900.75 910.00 916.00
CK18 352.92 358.33 361.67 367.08 370.42 375.83 379.17

 

 

 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.

 

 

 

 

 

 

02 Ago 2018

       

 FOREX Newsletter

 August 02, 2018
 

 

Pulse of the Market

·      ISM manufacturing index showed a reading of 58.1 for July, missing expectations of 59.4

·      Private payrolls grew by 219,000 for July, rising from the 181,000 seen in June

·      The Bank of England’s Monetary Policy Committee is widely expected to raise the bank rate today

·      The Canadian Dollar strengthened to a nearly seven-week high against its U.S counterpart

The Dollar rose modestly against its rivals amid mixed U.S economic data on the labor market and manufacturing ahead of Federal Reserve’s policy decision. The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, rose by 0.15% to 94.47. ISM manufacturing index showed a reading of 58.1 for July, missing expectations of 59.4. A reading above 50 in the ISM index indicates an expansion in manufacturing, which accounts for about 12% of the U.S. economy. The ISM Employment sub-index showed a reading of 56.5 for July, topping expectations of 56.0, supporting the narrative of a strong U.S. labor market as the private sector also saw strong job growth. Private payrolls grew by 219,000 for July, rising from the 181,000 seen in June, according to a report released Wednesday by ADP and Moody’s Analytics. That beat economists’ forecast of 186,000. The slew of economic data arrived just hours ahead of the Federal Reserve’s interest rate decision and accompanying monetary policy statement due 2 p.m. ET. The Federal Open Market Committee is expected to vote to leave interest rates unchanged, but market participants are expected to closely parse the accompanying statement for any tweaks in language on monetary policy. According to Fed Rate Monitor Tool, 97.9% of traders expected the Federal Reserve to stand pat on interest rates. That is slightly higher than the 96.9% seen a day earlier. The dollar lost ground against the yen as the latter drew strength from a sharp uptick in Japan 10-year bond yields in the wake of the Bank of Japan’s decision Tuesday to permit long-term rates to fluctuate between zero and 0.2%, depending on economic and price developments. USD/JPY fell 0.16% Y111.68 after trading as high as Y112.15 GBP/USD fell 0.05% to $1.3117 as traders looked ahead to the Bank of England’s rate decision on Thursday. The Bank of England’s Monetary Policy Committee is widely expected to raise the 0.50% bank rate today’s meeting to 0.75%.

 

   

 

 

Time(GMT)   Economic Release IMP Actual Forecast Prior
01:30 Australia Trade Balance (JUN) Medium   A$900m A$827m
05:45 Switzerland SECO Consumer Confidence (JUL) Medium   2 2
07:15 Switzerland Retail Sales Real (YoY) (JUN) Medium   0.0% -0.1%
07:30 Switzerland PMI Manufacturing (JUL) Medium   60.9 61.6
08:30 Markit/CIPS UK Construction PMI (JUL) Medium   52.8 53.1
09:00 Euro-Zone Producer Price Index (YoY) (JUN) Low   3.5% 3.0%
11:00 Bank of England Bank Rate (2 AUG) High   0.75% 0.50%
11:00 BOE Asset Purchase Target (AUG) High   435b 435b
11:00 Bank of England Inflation Report High      
12:30 U.S Initial Jobless Claims (28 JUL) Medium   220k 217k
12:30 U.S Continuing Claims (21 JUL) Medium     1745k
14:00 U.S Factory Orders (JUN) Medium   0.7% 0.4%
14:00 U.S Durable Goods Orders (JUN) Medium     1.0%
23:50 BOJ Minutes of Policy Meeting (JUN) Medium      

 

Euro

The single currency struggled as fears of an escalation in the trade dispute between the United States and China boosted the dollar and a survey showing subdued euro zone manufacturing growth in July kept investors cautious. The U.S. administration plans to propose a 25 percent tariff on $200 billion in Chinese imports, up from an original 10 percent. Overall, the EUR/USD traded with a low of 1.1655 and a high of 1.1698 before closing the day around 1.1658 in the New York session.

 

Yen

The Japanese Yen fell as the Bank of Japan offers minimal tweaks to its loose monetary policy. After the Bank of Japan (BOJ) released the statement on Tuesday that it would make its policy framework more flexible for the long term, Yen took a dip. However, for now, the bank only made a few tweaks to its ultra-loose monetary policy. Overall, the USD/JPY traded with a low of 111.37 and a high of 112.13 before closing the day around 111.70 in the U.S session.

 

British Pound

The British Pound trod water as traders shunned the currency ahead of Bank of England interest rate decision, although strategists at Nordea Markets say Sterling will almost certainly be found wanting after the event and that they favor selling the currency. The Bank of England is widely expected by the market to raise UK interest rates to 0.75% on Thursday. Overall, the GBP/USD traded with a low of 1.3093 and a high of 1.3142 before closing the day at 1.3124 in the New York session.

 

Canadian Dollar

The Canadian Dollar strengthened to a nearly seven-week high against its U.S counterpart as the U.S Federal Reserve left interest rates on hold and officials signaled progress in talks to update the NAFTA trade pact. The United States and Mexico are getting close to a deal on the key issue of autos content rules at negotiations to renew the NAFTA.   Overall, USD/CAD traded with a low of 1.2972 and a high of 1.3030 before closing the day at 1.3001 in the New York session.

 

Australian Dollar

The Australian Dollar has rallied a bit during the trading session yesterday, but this is a very busy week and therefore I think it’s very unlikely that we can make a longer-term move in the next couple of days. By the end of the week, we may have some clarity, as we get the jobs number out of America. At this point though, I do believe that pullbacks are buying opportunities. Overall, AUD/USD traded with a low of 0.7388 and a high of 0.7427 before closing the day at 0.7402 in the New York session.

 

Euro-Yen

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 52 and lies above the neutral zone. In general, the pair has lost 0.40%.

 

Sterling-Yen

Currently, GBP/JPY is trading above 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 52 reading and lies above the neutral zone. On the whole, the pair has lost 0.11%.

  

Aussie-Yen

Currently, the cross is trading above 14, 50 and 100 days moving average. Fast stochastic is giving a bearish tone and MACD is also indicating a bearish stance. The Relative Strength Index is above 51 reading and lies above the neutral region. In general, the pair has lost 0.39%.

  

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 issuing a bullish signal. The Relative Strength Index is above 53 and lies above the neutral region. On the whole, the pair has lost 0.27%.

   

Sterling-Swiss

This cross is trading above 14, 50 and below 100 days moving average. Fast stochastic is issuing a bearish stance and MACD is indicating a bullish tone. The Relative Strength Index is above 42 and lies below the neutral region. In general, the pair has gained 0.18%.

 

Appendix

  

FOREX Closing Prices for August 01, 2018
Currency Open High Low Close Net Chg
EUR/USD 1.16918 1.16983 1.16558 1.16582 -0.0032
USD/JPY 111.811 112.133 111.371 111.702 -0.1510
GBP/USD 1.31195 1.31426 1.30933 1.31245 0.0002
USD/CHF 0.98995 0.99325 0.98976 0.99194 0.0019
USD/CAD 1.30103 1.30304 1.29729 1.30013 -0.0002
EUR/JPY 130.727 131.083 130.008 130.246 -0.5190
GBP/JPY 146.704 147.122 146.288 146.612 -0.1620
CHF/JPY 112.908 113.75 112.398 112.58 -0.3430
AUD/JPY 83.003 83.093 82.448 82.686 -0.3240
EUR/GBP 0.89092 0.89153 0.88812 0.88817 -0.0024
EUR/CHF 1.15758 1.16017 1.15621 1.15648 -0.0011
GBP/CHF 1.29895 1.30282 1.29794 1.30182 0.0023

   

Daily Pivot Points
  Trading Range  
Contract S3 S2 S1 Pivot R1 R2 R3
EUR/USD 1.1601 1.1628 1.1643 1.1671 1.1686 1.1713 1.1728
USD/JPY 110.58 110.97 111.34 111.74 112.10 112.50 112.86
GBP/USD 1.3048 1.3071 1.3098 1.3120 1.3147 1.3169 1.3196
USD/CHF 0.9866 0.9882 0.9901 0.9917 0.9935 0.9951 0.9970
USD/CAD 1.2915 1.2944 1.2973 1.3002 1.3030 1.3059 1.3088
EUR/JPY 128.73 129.37 129.81 130.45 130.88 131.52 131.96
GBP/JPY 145.39 145.84 146.23 146.67 147.06 147.51 147.89
CHF/JPY 110.72 111.56 112.07 112.91 113.42 114.26 114.77
AUD/JPY 81.75 82.10 82.39 82.74 83.04 83.39 83.68
EUR/GBP 0.8836 0.8859 0.8870 0.8893 0.8904 0.8927 0.8938
EUR/CHF 1.1511 1.1537 1.1551 1.1576 1.1590 1.1616 1.1630
GBP/CHF 1.2940 1.2960 1.2989 1.3009 1.3038 1.3057 1.3087

 

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.

 

 

01 Ago 2018

Daily Market View

   

Daily Market View

Wednesday, August 01, 2018
          U.S Stock Market

 

DJIA S & P 500 NASDAQ
25437 2824.00 7262.25
+0.43% +0.49% +0.55%

Wall Street traded higher yesterday as technology stocks looked to rebound after a widespread sell-off in the prior session and as economic data showed U.S. consumer spending rose solidly in June. The technology sector, which had led the equity market to record highs, has lost more than 5 percent in the past three days after lackluster earnings from Netflix, Facebook and Twitter raised concerns about the future growth of high-flying companies. Investors are now pinning their hopes on Apple, the last of the FAANGs to report results, which is due after the bell. The stock was up 0.3 percent. The Commerce Department said U.S. consumer spending increased 0.4 percent last month as households spent more on restaurants and accommodation, building a strong base for the economy heading into the third quarter, while inflation rose moderately. The Federal Reserve is expected to leave interest rates unchanged after increasing borrowing costs in June for the second time this year. The Fed has forecast two more rate hikes by December.

 

 

 

Major Economic Releases for Today
Period Event GMT Forecast Previous

jul

Caixin China PMI Mfg 01:45 50.9 51

jul

Markit UK PMI Manufacturing s.a. 08:30 54.2 54.4

jul

U.S MBA Mortgage Applications 11:00   -0.2%

jul

U.S ADP Employment Change 12:15 185k 177k

jul

RBC Canadian Manufacturing PMI 13:30   57.1

jul

U.S ISM Manufacturing 14:00 59.3 60.2

jul

U.S ISM Employment 14:00   56

jul

DOE U.S. Crude Oil Inventories 14:30   -6147k

aug

U.S FOMC Rate Decision (Upper Bound) 18:00 2.00% 2.00%
Dow Jones Industrial Average

The Dow Jones Industrial Average gained 0.43% yesterday. The biggest gainers of the session on the Dow Jones Industrial Average were 3M Company, which rose 3.51% or 7.20 points to trade at 212.32 at the close. Pfizer Inc. added 3.47% or 1.34 points to end at 39.93 and Caterpillar Inc. was up 2.90% or 4.05 points to 143.80 in late trade. Biggest losers included Walgreens Boots Alliance Inc., which lost 2.23% or 1.54 points to trade at 67.62 in late trade. Verizon Communications Inc. declined 1.62% or 0.85 points to end at 51.64 and JPMorgan Chase & Co shed 1.52% or 1.78 points to 114.95.

 

NASDAQ 100

The tech heavy NASDAQ index climbed 0.55% yesterday. The top performers on the NASDAQ Composite were Naked Brand Group Ltd which rose 44.58% to 6.000, Medpace Holdings Inc. which was up 30.38% to settle at 61.37 and Aytu BioScience Inc. which gained 20.70% to close at 0.3435. The worst performers were Helios and Matheson Analytics Inc. which was down 38.00% to 0.496 in late trade, GDS Holdings Ltd which lost 37.18% to settle at 21.83 and JMU Ltd which was down 34.14% to 1.910 at the close.

Oil

Oil prices fell yesterday, closing out the largest monthly decline in two years on supply worries after OPEC output reached a 2018 high in July, overshadowing reports that the United States and China might reopen trade talks that could boost demand. U.S crude futures fell $1.37, or nearly 2 percent, to settle at $68.76. Oil prices extended losses in post-settlement trade, with U.S. crude at $68.32 a barrel, after data from the American Petroleum Institute showed domestic crude inventories rose 5.6 million barrels last week. A Reuters poll forecast stocks fell 2.8 million barrels. The U.S. Energy Information Administration data is due on Wednesday. Signs that a supply disruption in the Bab al-Mandeb Strait in the Red Sea could be resolved weighed on prices throughout the trading session. Russia and the Organization of the Petroleum Exporting Countries boosted output in July, according to a Reuters production survey on Monday. It showed OPEC members boosted output in July by 70,000 bpd.

 
Precious and Base Metals

Gold prices rose yesterday, reversing early losses as the Chinese yuan strengthened against the dollar after a report said the United States and China were trying to restart negotiations to defuse a trade war. In early trade, a stronger dollar and rising U.S. interest rates had sent bullion falling to its lowest in a week and a half. Gold turned positive on the idea that there’s a possibility of negotiating with China. If they do negotiate and something good comes out of it, it is positive for metals, because it would help the Chinese come back into the market and take deliveries. There’s been some worry about the Chinese not taking deliveries because of the tariffs and expensive dollar. Spot gold rose 0.3 percent to $1,224.48 per ounce, rebounding after touching its lowest since July 19. The precious metal is heading for a 2 percent monthly decline. U.S gold futures for August delivery settled up $2.40, or 0.2 percent, at $1,223.70 per ounce. The Chinese currency is preventing (gold) from dropping much further like we saw earlier in the morning. The Chinese Yuan had been weakening against the dollar, pressuring greenback-denominated gold. That pressure abated, providing gold some support. Some commodities prices have strengthened as the dollar has slowly retreated from recent highs. We’ve seen a pickup in commodity demand. Some of that is relative to the slight weakness in the dollar. The dollar was slightly higher versus a currency basket, following a three-month streak of gains, with the U.S. Federal Reserve set to reaffirm the outlook for further gradual rate rises at the end of its two-day monetary policy meeting today. Higher U.S. interest rates tend to boost the dollar, making dollar-priced gold more expensive for holders of other currencies. Meanwhile, silver gained 0.3 percent at $15.53 an ounce, poised to end the month down more than 3 percent.

 

Traditional Agricultures

Soybean futures surged 3 percent to 1-1/2-month highs on hopes that the United States and China would restart stalled talks to avert a damaging trade war that has already slowed U.S soy exports. Corn and wheat climbed along with soybeans, drawing additional support from concerns about weather-reduced harvests in key production areas around the world.

 

 

 

Futures Settlement Price Tuesday, July 31, 2018
Instrument Contract Open High Low Settlement Net Change
DJIA DJM18 25304 25461 25269 25437 148
S & P 500 SPM18 2805.25 2824.75 2802.75 2824 20.5
NASDAQ 100 NDM18 7208 7283.25 7189 7262.25 61.5
Hang Seng HSH18 28632 28661 28419 28428 -254
Nikkei 225 NKH18 22490 22665 22330 22530 -5
FTSE 100 FTH18 7639.5 7722 7632 7681.5 53.5
Gold GCJ18 1230.3 1237.4 1222.4 1232.7 2.2
Silver SIK18 1549.5 1562 1536.5 1553 1
Copper HGK18 279.45 284.1 276.85 282.6 2.65
Crude Oil CLK18 70.02 70.18 68 68.39 -1.76
Wheat WK18 544.25 564.5 540.25 553.5 6.75
Soybeans SK18 879 911.5 878 907.5 25.5
Corn CK18 366.25 374 366 372 4.25

 

 

Daily Swings  (The Pivot Levels)
  Trading Range  
Contract S3 S2 S1 Pivot R1 R2 R3
DJM18 25125 25197 25317 25389 25509 25581 25701
SPM18 2787.58 2795.17 2809.58 2817.17 2831.58 2839.17 2853.58
NDM18 7112.17 7150.58 7206.42 7244.83 7300.67 7339.08 7394.92
HSH18 28102 28261 28344 28503 28586 28745 28828
NKH18 22017 22173 22352 22508 22687 22843 23022
FTH18 7545.00 7588.50 7635.00 7678.50 7725.00 7768.50 7815.00
GCJ18 1209.27 1215.83 1224.27 1230.83 1239.27 1245.83 1254.27
SIK18 1513.50 1525.00 1539.00 1550.50 1564.50 1576.00 1590.00
HGK18 271.02 273.93 278.27 281.18 285.52 288.43 292.77
CLK18 65.35 66.68 67.53 68.86 69.71 71.04 71.89
WK18 516.75 528.50 541.00 552.75 565.25 577.00 589.50
SK18 853.00 865.50 886.50 899.00 920.00 932.50 953.50
CK18 359.33 362.67 367.33 370.67 375.33 378.67 383.33

 

 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.

 

 

 

 

 

 

01 Ago 2018

FOREX Newsletter

     

FOREX Newsletter

August 01, 2018

 

Pulse of the Market

·      U.S personal consumption expenditures (PCE) price index excluding food and energy rose 0.1%

·      Euro zone economic growth slowed further in the second quarter, preliminary data showed

·      Sterling has recuperated somewhat in recent sessions, moving away from the 10-month low

·      The Canadian dollar rose to a nearly seven-week high against its U.S. counterpart yesterday

The U.S Dollar edged higher yesterday, shrugging off mixed economic data showing inflation remained close to Federal Reserve’s target as the two-day Fed meeting kicked off. The U.S dollar index, which measures the greenback against a trade-weighted basket of six major currencies, rose by 0.16% to 94.28. The Federal Reserve’s preferred inflation measure, the personal consumption expenditures (PCE) price index excluding food and energy, rose 0.1%, in June in line with forecasts, but rose 1.9% in the 12 months through June, lower than economists’ estimates. The slower pace of inflation did little to alter investor rate-hike expectations, despite calls from analysts suggesting the Fed may have to consider reining in rate hikes if inflation pressures continue to come up short. The Fed can continue on its path of gradual rate hikes for now, but unless inflation pressures start to build, they may have to scale back their forecasts of how high interest rates actually need to go in this business cycle. According to Fed Rate Monitor Tool, 96.9% of traders expected the Federal Reserve to stand pat on interest rates on Wednesday, unchanged from a day earlier. The Dollar started the session on the front foot, helped by a slump in the yen after the Bank of Japan left its loose monetary policy measures mostly unchanged but said it would allow fluctuating long-term rates between zero and 0.2%, depending on economic and price developments. Japan 10-Year bond yields retreated from highs on the news, pressuring the yen, as market participants had been speculating in the run up to the BoJ announcement that the central bank could take a more aggressive stance on policy tightening. Elsewhere, GBP/USD fell 0.03% to $1.3129 as traders weighed expectations for a Bank of England rate hike on Thursday and ongoing Brexit uncertainty.
   

 

Time(GMT)   Economic Release IMP Actual Forecast Prior
01:45 Caixin China PMI Mfg (JUL) Medium 50.9 51
06:00 U.K Nationwide House Px n.s.a. (YoY) (JUL) Medium 1.8% 2.0%
07:55 Markit/BME Germany Manufacturing PMI (JUL) Low 57.3 57.3
08:00 Markit Eurozone Manufacturing PMI (JUL) Low 55.1 55.1
08:30 Markit UK PMI Manufacturing s.a. (JUL) Medium 54.2 54.4
11:00 U.S MBA Mortgage Applications (27 JUL) Medium -0.2%
12:15 U.S ADP Employment Change (JUL) Medium 185k 177k
13:45 Markit US Manufacturing PMI (JUL) Low 55.5 55.5
14:00 U.S Construction Spending (MoM) (JUN) Medium 0.3% 0.4%
14:00 U.S ISM Manufacturing (JUL) High 59.3 60.2
14:00 U.S ISM Employment (JUL) High 56
14:00 U.S ISM Prices Paid (JUL) Medium 75.5 76.8
14:30 DOE U.S. Crude Oil Inventories (27 JUL) Medium -6147k
18:00 FOMC Rate Decision (Upper Bound) (1 AUG) High 2.00% 2.00%
18:00 FOMC Rate Decision (Lower Bound) (1 AUG) High 1.75% 1.75%

 

Euro

The single currency fell as the euro zone economy grew more slowly than expected in the second quarter, preliminary data showed yesterday, but headline and core inflation accelerated with unemployment stabilizing at a lower level. Headline consumer inflation accelerated to 2.1 percent year-on-year in July from 2.0 percent in June. Overall, the EUR/USD traded with a low of 1.1682 and a high of 1.1744 before closing the day around 1.1689 in the New York session.

 

Yen

The Japanese Yen fell against the dollar and registered its biggest daily loss in nearly three weeks o after the central bank pledged to keep interest rates low and adopted a forward guidance model to strengthen its commitment for its massive policy stimulus. The BOJ pledged to maintain its short-term interest rate target at minus 0.1 percent. Overall, the USD/JPY traded with a low of 110.72 and a high of 111.93 before closing the day around 111.85 in the U.S session.

 

British Pound

The British Pound slid below $1.31 yesterday as the dollar rebounded and investors prepared for a Bank of England policy meeting this week at which markets are now pricing in a near-90 percent chance of a 25 basis points rate rise. Sterling has recuperated somewhat in recent sessions, moving away from the 10-month low it touched earlier in July. Overall, the GBP/USD traded with a low of 1.3088 and a high of 1.3171 before closing the day at 1.3122 in the New York session.

 

Canadian Dollar

The Canadian Dollar rose to a nearly seven-week high against its U.S. counterpart in yesterday’s trading session as investors weighed a possible easing of global trade tensions and after data showed stronger-than-expected growth in the domestic economy. Canada’s economy grew by 0.5 per cent in May, the biggest rise in a year.  Overall, USD/CAD traded with a low of 1.2979 and a high of 1.3094 before closing the day at 1.3003 in the New York session.

 

Australian Dollar

The Australian Dollar gained yesterday after a surprise surge in the number of new building approvals issued during June showed fears over a possible collapse of the Aussie housing market to be overdone. Australian dwelling approvals rose by 6.4% on seasonally adjusted terms during June, up from an upwardly-revised contraction of -2.5% in May. Overall, AUD/USD traded with a low of 0.7402 and a high of 0.7438 before closing the day at 0.7425 in the New York session.

 

Euro-Yen

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 56 and lies above the neutral zone. In general, the pair has gained 0.59%.

 

Sterling-Yen

Currently, GBP/JPY is trading above 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 50 reading and lies above the neutral zone. On the whole, the pair has gained 0.63%.

  

Aussie-Yen

Currently, the cross is trading above 14, 50 and 100 days moving average. Fast stochastic is giving a bearish tone and MACD is also indicating a bearish stance. The Relative Strength Index is above 55 reading and lies above the neutral region. In general, the pair has gained 0.90%.

 

 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 issuing a bullish signal. The Relative Strength Index is above 58 and lies above the neutral region. On the whole, the pair has lost 0.09%.

  

Sterling-Swiss

This cross is trading above 14, 50 and below 100 days moving average. Fast stochastic is issuing a bearish stance and MACD is indicating a bullish tone. The Relative Strength Index is above 39 and lies below the neutral region. In general, the pair has gained 0.11%.

 

Appendix

 

 

FOREX Closing Prices for July 31, 2018
Currency Open High Low Close Net Chg
EUR/USD 1.17043 1.17444 1.16822 1.16899 -0.0017
USD/JPY 111.028 111.939 110.724 111.853 0.7960
GBP/USD 1.31337 1.31711 1.30882 1.31225 -0.0011
USD/CHF 0.98816 0.99025 0.98655 0.99006 0.0017
USD/CAD 1.30316 1.30941 1.29794 1.30035 -0.0034
EUR/JPY 129.965 131.127 129.676 130.765 0.7610
GBP/JPY 145.836 146.985 145.349 146.774 0.9170
CHF/JPY 112.325 113.155 112.108 112.923 0.5360
AUD/JPY 82.219 83.226 82.117 83.01 0.7400
EUR/GBP 0.89085 0.8934 0.89029 0.8906 -0.0008
EUR/CHF 1.15695 1.15958 1.15586 1.15763 0.0005
GBP/CHF 1.2979 1.3053 1.29468 1.29952 0.0014

 

 

 

Daily Pivot Points
  Trading Range  
Contract S3 S2 S1 Pivot R1 R2 R3
EUR/USD 1.1604 1.1643 1.1667 1.1706 1.1729 1.1768 1.1791
USD/JPY 109.86 110.29 111.07 111.51 112.29 112.72 113.50
GBP/USD 1.3001 1.3044 1.3083 1.3127 1.3166 1.3210 1.3249
USD/CHF 0.9840 0.9853 0.9877 0.9890 0.9914 0.9926 0.9951
USD/CAD 1.2843 1.2911 1.2957 1.3026 1.3072 1.3140 1.3187
EUR/JPY 128.47 129.07 129.92 130.52 131.37 131.97 132.82
GBP/JPY 144.12 144.73 145.75 146.37 147.39 148.01 149.03
CHF/JPY 111.26 111.68 112.30 112.73 113.35 113.78 114.40
AUD/JPY 81.23 81.68 82.34 82.78 83.45 83.89 84.56
EUR/GBP 0.8864 0.8883 0.8895 0.8914 0.8926 0.8945 0.8957
EUR/CHF 1.1521 1.1540 1.1558 1.1577 1.1595 1.1614 1.1632
GBP/CHF 1.2837 1.2892 1.2944 1.2998 1.3050 1.3105 1.3156

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

 

 

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