Risk off sentiment, increasing US crude stockpiles have added to the bearish trend for oil prices. A breach through key technical indicators is set to add to oil price losses.
EURUSD is moving gently higher after having printed below 1.1300 earlier this week and is closing in on a strong resistance level that may prove difficult to overcome.
Trader confidence is rising on news of resumed US-China trade talks and a pledge by Qatar to invest $15 billion in Turkey.
Gold remains oversold in the short-term after making a fresh 18-month low Wednesday. The precious metal however may find support from one highly-correlated currency pair, USDCNH and a marginally weaker US dollar.
UK retail sales climbed by more than expected in July, lifting GBPUSD ahead of the latest EU-UK talks on Brexit. However, further gains for the pair could be difficult to achieve.
News US and China will meet for trade talks and the HKMA upholding their peg lifted stocks in Asia trade. Wall Street may follow, USD/JPY remains stuck between key support and resistance.
China’s vast debts have long been a pressing background worry for economic analysts and investors. If growth weakens, they could hit the foreground very quickly
AUD/USD sharply rose after news that China and the US would engage in trade talks, looking past underperforming local jobs data.
While Wall Street gapped lower, Qatar offering financial help to Turkey helped emerging markets rally as the S&P 500 bottomed. CAD prices pared gains and AUD/USD may rise next.
The US Dollar remained firm after the release of Treasury International Capital’s flow data. Long-term investment in the US fell but total balances bounced.
Risk averse sentiment remains prominent with equity markets holding modest losses, US Dollars in demand as Federal Reserve unwind balance sheet.
The cryptocurrency market fell sharply early in the week before a minor rebound. The pull-back looks weak and the market’s downtrend remains in place for now.
The Euro could well lose more ground on fears of losses for European banks exposed to Turkey despite a recovery in the Turkish Lira.
Sterling traders will now look towards the next round of Brexit talks – starting tomorrow – before deciding the next move in GBPUSD. The pair remain weak and at risk of a volatile snap.
UK inflation edged up to 2.5% year/year in July but UK interest rates are on hold and the downward pressure on the British Pound will likely continue on Brexit concerns.
Hawkish forward guidance from the Bank of Indonesia may not offer much for IDR. The US Dollar could gain across the board on haven bids if Turkish concerns and Brexit fears linger.
Global stocks showed pull backs to varying degrees this week as the economic situation around Turkey sparked fears of contagion in Europe.
The IEA walked back fears of a potential shortage as new supply comes online only to be overcome by concern that Trade Wars could limit economic activity and demand for energy.
AUD/NZD can at times net out market mood swings, behaving as “risk neutral”. This allows it to focus more on Reserve Bank of Australia and New Zealand monetary policy bets.
FANG makes up a small collection of large-cap technology stocks which have become a crucial indicator for market sentiment and risk trends.
FX reserves figures from July show that the PBOC is clearly allowing the Chinese Yuan depreciation to go unchallenged.
Will a hawkish Philippine central bank uplift PHP amidst higher inflation, allowing for USD/PHP to fall further? Asean currencies eye risk trends, US CPI and foreign reserve counts.
Crude Oil prices continued to hold the down-trend this week, but a key level of support came into play yet again to help stem the declines. A rise in geopolitical tensions may soon offset the expected increases in supply.
Next week won’t be as busy on the economic calendar front, but markets could still be on the move with risk trends.
The China-US trade war is cresting and new concerns are rising elsewhere – mainly in FX markets.
A rising USD on the Fed, BoE and Eurozone CPI could continue adding pressure to ASEAN currencies like the Philippine Peso. USD/IDR, after a fall, faces key chart support at 14,351.
Trade wars are dominating the headlines, but traders are watching two key markets – copper and the USD/CNH exchange rate – to see how deep the tariffs could cut into the economic miracle that was China.
The Chinese Yuan extended losses against the U.S. Dollar for the seventh week. Looking forward, domestic economic difficulties and the ongoing trade war could continue to challenge the country and its currency.
Next week will be a busy one, with several major data releases and CB meetings taking place; markets will look to try to maintain its footing towards higher prices.
Crude oil avoided its fourth weekly loss legitimate concerns about mid-east tensions disrupting Saudi supplies and positive EIA data have over taken trade war fears.