Market Brief Series / EP. 383 / 16th Aug 2018
Overall there is minor strength in the JPY, EUR, CHF. Weakness in the CAD, with minor weakness in GBP, NZD, and USD.
USD held near a 13-month peak on Thursday as political turmoil in Turkey and concerns about China's economic health continued to support safe-haven assets and weighed on emerging market currencies.
Oil prices on Thursday recouped some of the previous day's losses after Beijing said it would send a delegation to Washington in an attempt to resolve trade disputes between the United States and China that have roiled global markets.
Gold risk reversals indicate the investors are expecting a corrective rally to be short-lived.
USD/JPY has remained steady in the opening hour of Tokyo today.
AUD appreciated against its US counterpart after news broke that the Chinese Vice Commerce Minister would visit the United States in late August for trade talks, mostly ignoring the release of local jobs data early into Thursday’s Asia Pacific trading session.
Turkey's escalating tensions with Washington could limit the downside in the USD/TRY pair. Erdogan government hiked tariffs on the US cars, spirits, and rice on Tuesday in response to America’s decision to double the tariffs on Turkish steel and aluminum.
EUR/USD continues the rebound and is currently at levels around the ascending 20-period moving average, which has just crossed above the 50-period one. RSI has returned to levels above the neutrality level of 50, showing continued upward momentum for the pair. As long as the bullish bias is maintained, the pair should proceed toward 1.1400 on the upside. Key support is located at 1.1300.
On the data slate there’s German Wholesale Price Index; UK Retail Sales; US Initial Jobless Claims; US Continuing Claims; US Housing Starts; US Building Permits and US Philadelphia Fed Business Outlook.
SELL EUR/USD @ 1.1365 OR BETTER – STOP @ 1.1410 – TARGET @ 1.1280
SELL GBP/USD @ 1.2755 OR BETTER – STOP @ 1.2800 - TARGET @ 1.2660
BUY USD/JPY @ 110.90 OR BETTER – STOP @ 110.30 – TARGET @ 112.10
SELL CL0918 @ 65.50 OR BETTER – STOP @ 66.00 – TARGET @ 63.80
SELL AUD/USD @ 0.7245 OR BETTER – STOP @ 0.7290 – TARGET @ 0.7170
SELL XAU/USD @ 1175 OR BETTER – STOP @ 1183 – TARGET @ 1155
SELL XAG/USD @ 14.55 OR BETTER – STOP @ 15.00 – TARGET @ 14.00
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World economic crisis will more affect market in coming days