Market Update – August 25 – USD halts slide & equities hold gains
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.
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