Fundamental Analysis 2017.08.23 – Oil and EUR see Gains

At this point most markets are aware of Trump’s public statement missteps (once again) causing both Gold and JPY to show a significant increase in price currently at 1,291.50 and 109.1485 respectively – holding true to their safe-haven status.

European data surpassed expectations also cause the EUR to climb – but didn’t make a significant impact on Stoxx Europe 600 which actually dropped 0.3% when the London Stock Exchange opened this morning – on the other side of the Atlantic the story wasn’t very different as S&P 500 futures dropped 0.3% also, with the news that President Trump stated he was considering disbanding the North American Trade agreement and he was threatening to shut down the government if his Mexico/US wall wasn’t funded. This further startled markets that are already trigger happy for USD sell-offs. The DAX also fell 0.1%, the FTSE 100 lost a minuscule 0.05% compared to other global stocks.

US gasoline stockpiles showing an increase caused the price of oil to return to $47/barrel.
A trend towards European made products is fueling economic growth and accelerating price growth – which should give Mario Draghi a more stable platform to speak from at Jackson Hole later this week. Much unlike Fed’s head, Janet Yellen which platform is shaky to say the least.

GBP must have felt the reverberations of this as it dropped even against the weakened dollar to $1.2799 after loosing 0.2%.

EUR grew by 0.318% against the USD reaching $1.18.

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

STO Review