Daily Market Analysis
Find out more about which trading instruments are moving, and see which economic indicators to look out for, to update your trading strategy accordingly. Our Daily Market Analysis is provided by our in-house FX Market Specialist, Stavros Tousios.
Markets Mixed, Investors Eye US-EU Trade Meeting
It’s not only the Chinese who started taking stimulatory monetary and fiscal measures in an attempt to offset tariffs, but also US-based auto-manufacturers, who reported their interest in moving manufacturing to other countries. Auto-manufacturing will be the central item of discussion in today’s Trump-Junker meeting. With Chinese fiscal measures introduced only recently, PBOC seems to be backing more lending to businesses now, yet this led Yuan to a fresh 1-year low yesterday, which channelled through to equities and may spill through to commodities soon. Although several European PMIs were reported yesterday, markets ended the session mixed as investors wait in readiness for today’s Trump-Junker meeting and ECB’s rate decision tomorrow, Thursday.
Today's Important Indicators
Major Market Updates
EUR/USD – Euro-Dollar mixed and below $1.17 despite somewhat poor PMIs, risk appetite muted as investors wait for trade meeting between US-EU. Junker gears up for de-escalation.
GBP/USD – Sterling marginally higher as May announces shift in Brexit talks responsibility, prospects for “soft Brexit” lifted as she takes personal control. Pound ended 50 pips higher for the day.
USD/JPY – Dollar-Yen closed Tuesday unchaged as risk appetite remains reasonably steady, pair consecutively unmoved from 111.20–111.35 area but likely to do so soon as triangle pattern indicates.
USOIL – Oil $1 more expensive per barrel following API report as 2.231M inventory draw shift intraday investor sentiment, price stable near $69/b. EIA widely expected at 2:30PM GMT.
XAU/USD – YGold prices starting to look more interesting following yesterday’s mixed session, especially following China’s introduction of fiscal measures. Yellow metal holds on near $1230/o trendline.
BTC/USD – Bitcoin continues the good week following $8k break and a 2-month high, bullish momentum intact but pullbacks are expected. Fibonacci $8482 extension rejects price this morning.
US Equities – Alphabet soared 3.89% higher, Tesla declined by 1.90%.
US Indexes – DJ and S&P 500 both improved by 0.79% and 0.48%, respectively.
European Indexes - UK 100 DE 30 opened lower today, -0.16% and -0.06%, respectively.
Asian Indexes - ASX 200 fell by 0.21%, Nikkei up by 0.46% and Hang Seng trades 0.93% higher.
Kind Regards,
Stavros Tousios, FX Market Specialist, FXPRIMUS
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