Market News Today – USD (USDIndex 93.00) ticks up from lows at 92.81 & holds at 93.00, Yields (10yr 1.29%), Asian equities traded narrowly mixed overnight. US markets ground higher. (USA500 closed +0.15% @ 4486 & FUTS trade at 4480 now). Nasdaq biggest mover +0.52%. New Home sales a tad higher at 708K but Richmond manu Index big miss at 9 vs. 25. Overnight – VP Harris (now in Vietnam) calls China “bullies”, China reciprocates. USOil rallied again to $67.40, before cooling to $67.00. Gold tested up to $1809 then down to $1791, at $1795 now. No decision from G7 on extending the Kabul August 31 deadline.
European Open – September 10-yr Bund future down -6 ticks, US futures also slightly in the red. Trading has been very muted, with investors clearly holding back ahead of Jackson Hole, which remains the main focus for markets this week, even if expectations for an early tapering announcement have faded amid concern that the rapidly spreading Delta variant will at the very least dampen the recovery. 919 new cases in New South Wales, deaths in England at 5 mth high, rates have doubled in two weeks in Scotland since schools and football stadiums reopened.
Geopolitical risks add to the cautious backdrop & after a stronger close on Wall Street, DAX & FTSE 100 futures are currently down -0.075% & up 0.035% respectively, with US futures also little changed. In FX markets EURUSD dropped back to 1.1745 amid wider USD strength. Cable little changed at 1.3725
Today – German IFO, US Durable Goods, DoEs, ECB’s de Guindos, US 5yr supply & Weekly Oil inventories.
Biggest FX Mover @ (06:30 GMT) USDCAD (+0.25%) Stages recovery from dramatic 3-day collapse from spike at 1.2940 on Friday to 1.2577 lows yesterday. Currently back to 1.2620. Broke 21 EMA earlier at 1.2615, Faster MA’s aligning higher, MACD signal line & histogram still below 0 line but rising. RSI 51.00 and also rising. Stochs in OB zone. H1 ATR 0.00097, Daily ATR 0.69.
Click here to access our Economic Calendar
Stuart Cowell
Head Market Analyst
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
