Thank you for visiting our website.
Until further notice, Tradeo is no longer accepting new clients.
Asian stocks and S&P500 500 futures are on the rise after China reported a 5.6% yearly increase in industrial output in August, while retail sales are up 0.5% YoY, also above estimates. The world’s second-largest economy also extended exemptions on some US goods imports, adding to the positive mood.
The US dollar is on the back foot, especially against the Australian dollar which is benefiting from Beijing’s data dump and relatively optimistic meeting minutes from the Reserve Bank of Australia.
Gold is on the rise, breaking out of range and hitting the highest since early September. Citibank says record pace of ETF investors demand, the weaker dollar and negative yields are also underpinning the precious metal.
GBP/USD is failing to benefit from the greenback’s decline. The House of Commons passed the controversial Internal Markets bill which violated the Brexit accord with the EU. Several members of Prime Minister Boris Johnson’s Conservative Party said they would vote against the legislation when it comes to a final read next week.
UK jobs figures are due out shortly, and they will likely show a modest uptick in unemployment. The fate of the furlough scheme and the Bank of England’s decision are awaited.
EUR/USD is on the rise, shrugging off rising COVID-19 cases in the old continent and benefiting from the European Central Bank’s lax approach to the exchange rate as expressed last week. The German ZEW Economic Sentiment is eyed.
USD/JPY is trading on low ground below 106, seemingly unaffected by the ascent of Yoshihide Suga to lead Japan. The outgoing prime minister’s right-hand man will assume office on Wednesday.
Oil prices are struggling to rise amid reports that OPEC+ countries are unlikely to deepen petrol production cuts.
Having jumped 0.89% on Monday, gold is now closing on the next upside target at $1980, helped by broad-based US dollar weakness. The upbeat market mood on solid Chinese data downed the dollar.
According to FX Strategists at UOB Group, USD/JPY could drop further and test the 105.20 region in the next weeks.
24-hour view: “After trading in a quiet manner for several days, the sudden lurch lower in USD came as a surprise (overnight low of 105.53). The rapid drop appears to be running ahead of itself but with no sign of stabilization just yet, USD could breach the major support at 105.50. That said, it is left to be seen if it can maintain a foothold below this level (next support is at 105.20). Resistance is at 105.90 followed by 106.05.”
Next 1-3 weeks: “We have held the same view since last Monday (07 Sep, spot at 106.25) wherein USD ‘is likely in a consolidation phase and is expected to trade between 105.50 and 106.90 for a period of time’. After a week, USD is approaching the bottom of the range as it dropped to 105.53 yesterday (14 Sep). Downward momentum has improved considerably and from here, USD is expected to trade with a downward bias towards the next major support at 105.10. Overall, the negative bias in USD is deemed as intact as long as it does not move above the ‘strong resistance’ level at 106.30.”
Legal disclaimer: The material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instruments. UR Trade Fix Ltd accepts no responsibility for any use that may be made of these comments and for any consequences resulting in it. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. The analysis does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it. Past performance does not constitute a reliable indicator of future results and future forecasts do not constitute a reliable indicator of future performance.
It has not been prepared in accordance with legal requirements designed to promote the independence of research, and as such it is considered to be marketing communication. Although we are not specifically constrained from dealing ahead of the publication of our research, we do not seek to take advantage of it before we provide it to our clients. We aim to establish, maintain and operate effective organizational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. We operate a policy of independence, which requires our employees to act in our clients’ best interests when providing our services.