In Asia, Asian markets overall rose broadly today after the strong close in US stocks, with the Nikkei up by 1.90%. Hong Kong HSI is up 2.30%. China Shanghai SSE is up 0.33%. Singapore Strait Times is up 0.22%. Japan 10-year JGB yield is up 0.0176 at 0.028. Overnight, DOW rose 1.30%. S&P 500 rose 0.27%. NASDAQ dropped -0.39%. 10-year yield rose 0.012 to 0.574. Technically, Hong Kong HSI seems to be withstanding the political turbulence rather well with strong 2.3% gain at the time of analysis. Shorter term channel support seems to be defended well and focus is back on key or significant resistance levels to confirm. That would temporarily ease the threat of risk aversion out of Asia.
For the currencies market, the risk tone was a clear driver of markets, especially shown with NZD and AUD the strongest of the majors. This is, despite the latest NAB Business Confidence figures that fell back to -14, which also underlined the negative impact, of the coronavirus outbreak in Victoria is having on Australia’s economy. On the contrary, safe havens like the JPY and CHF are currently the weakest of the FX majors. As such, the session saw AUDJPY break firmly above yesterday’s high and the 76.00 handle while NZDJPY broke above the 70.00 handle. The JPY and USD are both back under selling pressure, together with the CHF. Overall, commodity currencies are generally stronger, with AUD leading the way higher.as mentioned above.
As for Gold, rising Treasury yields together with a firmer U.S. Dollar as of yesterday, are weighing on gold prices, since investors seemed to be returning to the safety of the USD. This is so, right after Beijing smacked sanctions on U.S. officials in the latest flare-up in tensions between the United States and China, with investors also keeping a close watch on negotiations over a U.S. stimulus plan. The main trend is up according to the daily swing chart; however, momentum is trending lower. A trade through $2089.20 will signal a resumption of the uptrend. The main trend will change to down on a breakthrough the last main bottom at $1819.30.
Today’s High Impact Events
The times below are GMT+3
09.00 (Post) – UK Claimant Count Change
Claimant Count Change presents the change in the number of people claiming unemployment benefits during the given month. An increase in the claimant count is an indication of weakness in the labour market and can have a negative effect on the GDP quotes. GBP/USD as of time of analysis today, is trading near 1.3070 following the data that was released, while the UK’s labour market results showed mixed results for the month of June. The focus now shifted to GDP figures, Industrial Production due tomorrow.
Potential instruments to Trade: GBP Crosses.
12.00 – ZEW Germany Economic Sentiment Indicator
The ZEW Indicator of Economic Sentiment for Germany decreased slightly in July 2020.The assessment of the economic situation in Germany has improved slightly for the second time since January 2020. The corresponding indicator currently stands at minus 80.9 points, an increase of 2.2 points compared to June. Going forward, traders would keep a watch on Euro-zone’s ZEW survey economic sentiment for August along with Germany’s ZEW survey current situation and economic sentiment, both for August, slated to release to in less than an hour’s time.
Potential instruments to Trade: EUR Crosses.
Coronavirus Status Update
The number of confirmed coronavirus cases worldwide topped 20 million today, more than half of them from the U.S., India and Brazil. It took six months or so to get to 10 million cases after the virus first appeared in central China late last year. It took just over six weeks for that number to double.
US COVID-19 cases +48,690 (prev. +54,590) and deaths +558 (prev. +1,064), while a major newswire tally stated that US cases increased by at least 48,405 to a total of 5.11mln on Monday and deaths rose by at least 541 to a total of 163.2k.
Join us at our next Market Analysis Webinar via Zoom.
Errante Trading LLC is incorporated in Saint Vincent and the Grenadines as a Limited Liability Company with registration number 191 LLC 2019.
This website is owned and operated by Errante Trading LLC with registered address at 1st floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines. Services displayed on this website are provided by Errante Trading LLC and not any affiliated entity.
Risk Warning: Our products are traded on margin and carry a high level of risk and it is possible to lose all your capital. These products may not be suitable for everyone and you should ensure that you understand the risks involved. For more information, please read our Risk Disclosure Statement.
Regional Restrictions: We do not provide our services to residents of certain jurisdictions such as the USA, Syria, North Korea, Iraq, Belgium and Canada.
Risk Warning: Our products are traded on margin and carry a high level of risk and it is possible to lose all your capital. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Full disclosure.
Functional Cookies help a site work well, they enable additional features which can make the user experience better.
If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.
Analytical and Promotional Cookies
Analytical cookies are used to determine usage of a site, they may track individual users, but only to the extent to allow a proper user journey through the site. They are not used for targeting adverts.
Promotional cookies keep track of information to tailor advertisements to you and to measure their success. This includes using previously collected information about your interests to select ads, processing data about what advertisements were shown, how often they were shown, when and where they were shown, and whether you took any action related to the advertisement, including for example clicking an ad or making a purchase.
Please enable Strictly Necessary Cookies first so that we can save your preferences!
Cookies are small pieces of information, normally consisting of just letters and numbers, which are automatically stored on your computer (or any other devise used to enter the Internet) when you visit a website and offer an insight your activity and preferences.