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    Morning Report – Wednesday 7th August

    THE DAILY REPORT

    MORNING REPORT 7th August

    TOP THINGS TO KNOW
    Wall Street climbs more than 1% after China moves on yuan

    (Reuters 07/08/2019) - U.S. stocks jumped more than 1 percent on Tuesday, bouncing back from a sharp sell-off the previous day as China stepped in to stabilize the yuan, easing concerns that currencies would be the next weapon in the U.S.-China trade war.
    China’s overnight intervention came after the U.S. Treasury Department labeled Beijing a currency manipulator as it let the yuan slide to a more than decade low on Monday.
    “It’s a signal from the Chinese side that they want to keep the yuan steady and elevated. But it also indicates how quickly things can change. That’s permeating the tone in the market, and it’s one of the reasons there remains that sense of trepidation,” said Quincy Krosby, chief market strategist at Prudential Financial in Newark, New Jersey.

    WTI stabilizing in the $53 handle, remains on thin ice as global outlook deteriorates

    (FXStreet 07/08/2019) - The price of oil is struggling in an environment where trade war risks are dampening the prospects of traction with respect to the global growth outlook. Those warnings at the International Monetary Fund (IMF) in July are coming home to roost for those that did not take heed of them.
    The IMF cut its growth forecasts for the global economy for this year and next predicting growth of 3.2% in 2019, down from its April forecast of 3.3% which was the prior lowest level since the financial crisis. Growth next year is set to pick up to 3.5% next year, although that is below its earlier forecast of 3.6%.
    West Texas Intermediate crude was ending on Wall Street around $53.67, -2.38% having travelled between a range of $53.48 and $55.41, unable to shake off the trade war blues. The September delivery was ending down $1.06, or 1.9%, to $53.63 a barrel on the New York Mercantile Exchange which was the lowest finish since June 17. The price of crude has been under immense pressure since Trump announced fresh tariffs on Chinese imports leading to the U.S. oil benchmark suffering its biggest one-day fall in more than four years.
    WTI levels: Technically, the price is below the 23.6% Fibo of the April highs to recent swing lows and is smothered below the 50 and 200 daily moving averages. Bears can target the 50 handle on an escalation of the trade wars. Below 52.00, the 51.30s come as a key downside target from here. On the upside, 56.80 guards a run to 60.50.

    GBP/USD remains confined in a range as no-deal Brexit concerns gain little attention
    (FXStreet 07/08/2019) GBP/USD keeps following a short-term symmetrical triangle as a lack of economic indicators and summer recess in the UK’s parliament restrict cable moves despite increasing odds for no-deal Brexit. The quote currently trades around 1.2166 during early Wednesday.
    While the Chancellor of the Duchy of Lancaster, Michael Gove, who is in charge of no-deal preparations, recently said that the EU turned down the scope of renegotiating the Brexit deal, Ireland's Prime Minister Leo Varadkar urged the UK and the EU to hold Brexit talks while speaking at a debate in Belfast.
    Further, The Telegraph conveyed the news that the supporter of the UK to remain in the EU are plotting to drag the British Queen to sack Boris Johnson if he defies no-confidence vote during early September.
    Even so, the Cable remains modestly unchanged while forming a symmetrical triangle on the hourly chart between 1.2205 and 1.2122/20 as lack of economic data from the UK and the US bores traders.
    Investors might now look forward to the UK’s July month Halifax House Prices, coupled with observing trade/political news, for fresh clues.
    Technical Analysis: Unless breaking short-term symmetrical triangle between 1.2205 and 1.2122/20, prices are less likely to offer many moves

    TRADE OPPORTUNITIES

    Below are Trading Central's Intraday preference recommendations. Short (SELL) positions and long (BUY) positions have two targets issued which may be used as take profit levels. Above or below a certain figure indicates the pivot level which may be used as a level for stop loss.
    EURGBP 30 Minute – Under pressure below 0.9233.
    This is general advice only and does not take into account your personal circumstances. “It is the Policy of ForexCT to recommend the use of stop/loss function to reduce risk of significant losses to customers.

    USDJPY Daily – Short positions below 107.95 with targets at 105.60 & 104.80.
    CRUDE OIL Daily – Short positions below 54.65 with targets at 53.07 & 52.45.
    NIFTY Daily – The downside prevails as long as 11188 is resistance.
    SILVER Daily – Long positions above 15.9500 with targets at 16.6500 & 17.0000.
    ASX 200 Daily – Short positions below 6715.00 with targets at 6320.00 & 6210.00.
    NIKKEI Weekly – Short positions below 21300 with targets at 20100 & 19650.
    This is general advice only and does not take into account your personal circumstances. “It is the Policy of ForexCT to recommend the use of stop/loss function to reduce risk of significant losses to customers.

    Economic Announcements (times in AEST)


    Risk Warning
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    Posted: August 07, 2019 | 6:50 AM