The foreign-exchange narrative early Monday is dominated by a weaker euro, as Italian public finances weigh on the shared European currency.
Investing.com - The U.S. dollar pushed higher against a currency basket on Monday, buoyed by expectations for trade talks that investors hope will ease tensions between the U.S. and China.
London stocks were off to a positive start for the week, led by shares of materials companies and taking a lead from global markets moving higher on trade optimism.
Investing.com - Gold prices gained while the dollar also edged up on Monday as trade war worries eased somewhat after reports over the weekend said U.S. President Donald Trump and Chinese leader Xi Jinping may meet in November to resolve intensifying trade disputes between the two countries.
Investing.com - Cryptocurrency prices advanced on Monday. Reports that Chinese e-commerce giant JD.com said it was launching a blockchain platform received some focus.
Investing.com - The Chinese yuan was little changed, while the dollar gained on Monday as traders awaited the outcome of the U.S.-China trade talks due later this week.
Risk-Off sentiment seeps into market over weekend proceedings while Brexit woes continue to pressure GBP resulting in GBPUSD pair trading downwards since trading started for the week.
EURO’s recovery move from over 13-month lows last week lost steam as market opened for the week weighed down by news of Italian budget plans which clash with EU putting USD bulls back in play.
Based on last week’s price action and the close at $1184.20, the direction of the December Comex Gold futures contract is likely to be determined by trader reaction to the long-term uptrending Gann angle at $1184.00.
Based on last week’s close at .7317 and the closing price reversal bottom, the direction of the AUD/USD this week is likely to be determined by trader reaction to last week’s high at .7320.
Based on last week’s close at 110.378, the longer-term direction of the USD/JPY this week is likely to be determined by trader reaction to the 50% level at 110.662 and the 61.8% level at 110.061.
A lack of data through the day will leave the markets focused on geo-political risk, a number of risks providing food for thought at the start of the week.
Based on last week’s price action and the prolonged move down, the direction of the NZD/USD is likely to be determined by trader reaction to the downtrending Gann angle at .6621 and the uptrending Gann angle at .6597.
Investing.com - Gold prices look likely to remain under pressure this week as a combination of a stronger dollar and higher Treasury yields make the precious metal less attractive to investors.
Investing.com - This week investors will get the chance on Wednesday to parse through the minutes of the Federal Reserve’s August meeting, when it left interest rates unchanged and indicated that it remains on track for additional rate hikes this year.
Looking at the price action since the last Bank of Japan monetary policy meeting and reading the BOJ minutes indicates the USD/JPY could be going through a transition period.
It’s a big week ahead for the markets and things could unravel should U.S China trade talks disappoint and FED Chair Powell raise concerns…
The Indian Rupee is just one of several emerging market currencies to come under pressure in the wake of the Turkish Lira’s collapse. However, the Rupee may be vulnerable to further weakness regardless of the weakness of the Lira.
The Aussie and Kiwi moved higher off their multi-year lows late in the week. Profit taking following a sell-off in risk currencies amid deteriorating risk sentiment helped underpin the Forex pairs. With the major fundamentals still bearish, any gains are likely to be limited this week. Nonetheless, improved risk appetite in reaction to stabilization in Turkey and a positive outcome from the trade talks between the U.S. and China, could underpin prices at times.
Gold futures finished lower last week after spiking to its lowest level since the week-ending December 23, 2016. The catalyst behind the selling pressure was a stronger U.S. Dollar which surged to its highest level since the week-ending May 19, 2017. The rally in the dollar was fueled by a sell-off in emerging market currencies which was triggered by a collapse in the Turkish Lira.
Primarily driving the price action early in the week was risk aversion with fears of Turkish contagion weighing on risky assets. Heading into the week-end, investors also appeared more optimistic that next week’s lower-level trade talks between China and the United States offer some hope that the two countries will find a way to head off a full-blown trade war. Australia’s jobs report missed expectations in July. The Dollar/Yen struggled all week to reverse its two-week decline, with lower Treasury yields and aversion to risk continuing to drive investors into the Japanese Yen.
Gold markets broke down below a major support level during the week, slicing through the $1200 level like it wasn’t even there. This was mainly due to the US dollar strengthening as people began to find themselves concerned about the Turkish lira. Because of this, the natural proclivity of gold to be inverse of the US dollar came into play.
The US dollar has been pretty mixed during the week against the Japanese yen, which makes perfect sense considering the dynamics at play in this currency pair. On one hand, you have a risk sensitivity in this pair, but at the other hand you have the US dollar being a bit too overbought.
The British pound has been rather volatile during the week, but when looked upon on the weekly chart, you could say that this week has been a bit of a victory. I direct your eyes to the month of May in 2017, when we formed several hammers at this level. The fact that we formed an indecisive candle for the week is a ray of hope in what is an otherwise bleak market.
The Euro fell during most of the week but bounced enough towards the end of it to turn around and show signs of life. The hammer is right at the very bottom of the overall support range, and I think that perhaps people are starting to look beyond the whole Turkish situation.