Despite the eventful day yesterday in terms of news flow, the American markets had a quiet finish.
Despite the eventful day yesterday in terms of news flow, the American markets had a quiet finish. The Dow Jones lost a little ground while the S & P 500 closed fractionally lower, and the NASDAQ 100 made a little bit of progress.
The US-Chinese trade spite is continuing as representatives of both countries in the US talk at low level. The tit-for-tat rates conflict remains as will both parties impose rates for $ 16 billion on each other's goods today. The monetary size is small, but the gesture is big and traders will keep an eye on developments. The Hang Seng and the CSI 300 are both in red.
The The Australian dollar came under pressure At night due to a number of departures from key cabinet advocates of Prime Minister Turnbull, and there is speculation that this will end his leadership.
The Fed minutes revealed a big indication that they are likely to raise interest rates next month. The central bank of the US said in essence that it quickly & # 39; rightly & # 39; would be to tighten monetary policy because there is & # 39; strong & # 39; economic growth. The Fed is well aware that the relatively low interest rates of recent years have increased to & # 39; increased & # 39; asset prices, but in general, companies have easy & # 39; access to credit. The protectionist policy of Donald Trump could bring about higher inflation because of the increased import costs. Policy makers expressed concern that long-term trade with China could limit investment and corporate spending. Overall, the Fed was optimistic in their outlook and seemed as if they were content to stay in their walking cycle.
The US dollar index experienced a jump in volatility during the Fed release, but closed the lows of the session. Trump's attack on the Fed for walking begins to feel less relevant in the light of the suggestion that an interest rate hike may be delivered next month.
The greenback can be overtaken by the political storm Trumps. The opponents of the president have quickly thrown him through the ins and outs of Michael Cohen and Paul Manafort. There has been the strange mention of deposition, but in reality the chance is low. The American-American component of the NAFTA calls goes well, and this is the kind of story Trump prefers on the front page of newspapers. The The Jackson Hole Symposium starts todayand traders listen to statements from central bankers.
Oil has closed the session positively after the Energy Information Administration had released the latest US inventory data, showing a much larger than expected decline in inventories. Stocks fell by 5.8 million barrels, while the consensus was for a decline of 1.5 million barrels. The relatively weak greenback and concerns about sanctions being applied to Iran have also helped the oil market.
The flash manufacturing and services PMI reports from the big euro zone countries will be in focus today. At 8.15 am (UK time), France will announce their figures, and economists expect the production report to reach 53.4, a slight improvement compared to the 53.3 in July. The consensus estimate for the services report is 55.1, compared to 54.9 last month. Germany will publish their figures at 8.30 am (UK time) and traders expect a slight cooling in the manufacturing industry from 56.9 in July to 56.5. Economists expect the service report to be 54.3 and the reading in July to be 54.1.
The US will also publish their PMI reports on production and services today, and they will be unveiled at 2.45 pm (British time). The production report is expected to be 55, a decrease compared to 55.3 in July, while the update of the services is expected to be 55.9, which would be a slight decrease in the 56th of July. The sale of new homes in the US will be announced at 3 pm (British time), and economists expect 645,000, which would be an improvement compared to 631,000 in June.
EUR / USD – now that it has fallen above the 1.1500 region, we could see further gains and resistance at 1.1615 – 50-day moving average. If the wider negative trend persists, support can be found at 1.1287 or 1.1156.
GBP / USD – has been on a declining trend since April and if the bearish movement continues, it could focus on 1.2590. Pullbacks can encounter resistance in the region from 1,2957 to 1,3000.
EUR / GBP – has been pushing higher since April and if the bullish run continues, it could reach 0.9050. A lower movement can find support at 0.8900 or 0.8844.
USD / JPY – the upward trend that started in March is still intact and if the positive move continues, it can focus on 112.15. Support can be found at 109.86 – the 200-day moving average.
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