Fundamental Analysis 2017.08.08 – USD, GBP, EUR and the Oil Price Drop

The US dollar during yesterday’s trading day fell against other G10 currencies. The lack macroeconomic calendar events, the upcoming inflation report and the profitable few days the USD experienced – instigated investors to close USD positions.

This resulted in the EUR/USD gaining 0.23% reaching 1.1800.

GBP/USD pair experienced a miniscule fluctuation, its price remained banded within the 1.3013–1.3060 region.
USD/JPY saw a slip in the magnitude of 0.19% falling to 110.56 largely due to the drop in the USD price.

AUD/USD seemed to be approaching an upswing in the morning, but failed to surpass the resistance level at 0.7938, and was corrected to the area of 0.7910.

Metal prices in lieu of both USD and Oil volatility saw a positive correction after a period of price drops. Gold went up by 0.16% and is currently trading in the area of 1260.78. Silver also experienced an increase, of 0.18% reaching 16.30.

Oil on the other hand is falling, due to markets expecting results from the OPEC+ technical committee. Another factor in the drop of oil was the possibility of Libya and Nigeria entering the agreement, but have yet to cease or lower production. Both Libya and Nigeria were allowed leniencies due to the military engagement within their countries until recently. Brent lost 0.29% slipping to 52.18. WTI dropped 0.52% currently trading at 49.38.

US stock is finally trading in the green. The Dow is trading in the area of 22091.5 after climbing 0.06%. The NQ gained 0.53% to 5929.9. S&P increased by 0.10% and is currently 2476.5.

European Stock is trading mixed. The FTSE went up by 0.06% reaching 7519.1. The CAC slipped to 5191.0 after losing 0.17%. The DAX lost 0.47% coming down to 12230.1.

This article comprises the personal view and opinion of the STO Investment Research Desk and at no time should be construed as Investment Advice.

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