Today's Important Indicators
Price action was considerably higher in the Tuesday session following an increased appetite in panic trading amid Italian politics and end-of-month repositioning. European and British markets declined while commodities entered an indecision mode. Euro-wide eco data in focus today, US GDP will set the tone for the next few days until Friday’s NFP.
Trading on margin products involves a high level of risk
MARKET MOVERS
EUR/USD – Euro declines to $1.1545 support as Italian risk prevails, sell-off may continue. Euro-Dollar fell to $1.1545 strong support yesterday due to a number of political concerns affecting the European currency. Italian risk, a slowing EU economy, ECB’s stimulus and political uncertainty in Spain are likely to keep pushing the Euro-Dollar rate lower while traders eye Thursday’s inflation.
EURUSD DAILY CHART
GBP/USD – British Pound decisively below $1.33, support break alarming following a 6-month low. Sterling depreciated by 100 pips in the Tuesday session following the wide sell-off in Euro and the shift to risky Dollar. While Dollar rose, Pound remained under pressure. By day’s end, the Dollar gave up some of the earlier gains as CB disappointed on a downward revision, with Cable closing the session on a 65-pip loss. Chartists now shift their focus on the 50% Fibonacci level a tad lower.
GBPUSD DAILY CHART
USD/JPY – Dollar slides below 109 against Yen as most traders choose to diversify to safe-haven. The dollar declined for another session against Yen despite the US currency Index seeing gains, as traders selected Yen to reduce risk appetite. With CB reporting poor Confidence figures, it was only a matter of “how many pips lower” rather than “will the pair end bearish intraday”. Dollar-Yen lost 71 pips, yet hit an intraday low of 130 pips near 50% Fibonacci at 108.
USD/JPY DAILY CHART
USOIL – Oil repositioning forms indecision candle as consensus appears to be unpredictable. Oil retests golden ratio for a second consecutive session, price candle ends day positive yet mixed above $66/b. With OPEC supply in the spotlight and the European melodrama persisting Oil prices are likely to provide actionable opportunities during the API and EIA reports.
CRUDE OIL DAILY CHART
XAU/USD – Italy signals conflicting for Gold as safe-haven Yen and risky US Dollar create uncertainty. Concerns over Italy’s political drama and US China and US NK developments kept the yellow metal stable on Tuesday. Nonetheless, the session was active and price moved into a wide range, with investors jumping into safe-haven Yen, most likely to remain until the scenery in global capital markets becomes less sensitive. US GDP may be the $1300 barrier or breaker.
XAUUSD DAILY CHART
US Indexes – DJ and S&P 500 plummeted by 1.58% and 1.16%, respectively.
European Indexes – DE 30 rose by 0.21%, UK 100 fell by 0.04%.
Asian Indexes - ASX 200 declined by 0.46%, Nikkei 225 plunged by 1.52%, Hang Seng trades 1.53 % lower.
US Equities – Bank of America plunged by 3.98%, Tesla appreciated by 1.76%
Risk Disclaimer:
Please note that forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors. Trading in financial instruments may result in losses as well as profits and your losses can be greater than your initial invested capital. Before undertaking any such transactions, you should ensure that you fully understand the risks involved and seek independent advice if necessary. Read our full risk disclosure.
Any opinions, news, research, analyses, prices or other information contained on this email or linked to from this email are provided as general market commentary and do not constitute investment advice. FXPRIMUS does not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.