Tuesday 16th August: European Open Briefing

IC Markets No Comments
Tuesday 16th August: European Open Briefing 1

Global Markets:

  • Asian stock markets: Nikkei down 0.75 %, Shanghai Composite fell 0.50 %, Hang Seng down 0.05 %, ASX 200 lost 0.15 %
  • Commodities: Gold at $1351 (+0.50 %), Silver at $19.93 (+0.55 %), WTI Oil at $45.50 (-0.50 %), Brent Oil at $48.10 (-0.55 %)
  • Rates: US 10 year yield at 1.54, UK 10 year yield at 0.54, German 10 year yield at -0.07

News & Data:

  • Australian ANZ Roy Morgan Consumer Confidence (Weekly) Aug 14: 117.6 (prev 114.7)
  • Australian New Motor Vehicle Sales (MoM) Jul -1.3% (prev 3.1%, rev 3.5%)
  • PBOC Fixes Yuan Reference Rate at 6.6305 (prev 6.6430)
  • RBA Minutes: Judged in August that prospects for growth and inflation would be improved by easing
  • RBA Minutes: Considerable uncertainty about labour market momentum and inflation outlook
  • Asia stocks at one-year high on global easy money policy, oil jumps – RTRS
  • Oil prices dip as traders cash in on two-week price rally – RTRS
  • Dollar on defensive, hits one-month low vs yen – RTRS

Markets Update:

The US Dollar is on the defensive as Friday's weak US economic data continues to weigh on the currency. USD/JPY fell to a low of 100.35 overnight and is likely to test 100 soon. This is not only a major technical support level, but has also a psychological effect and is a level the Bank of Japan is more sensitive too. So far, there has not been any verbal intervention from the BoJ or signs of direct intervention in the market, but a break below 100 is likely to prompt an answer from the central bank. Sub-100, look for support at 98.80 (post-Brexit low).

EUR/USD rose from 1.1180 to 1.12 overnight, while GBP/USD bounced off 1.2870 and made it back above 1.29. The commodity currencies caught a bid amid a weak Dollar & rising equity markets. NZD/USD rallied from 0.7205 to 0.7235, while USD/CAD declined from 1.2935 to 1.2915. AUD/USD declined briefly after the RBA minutes were released, but was able to found support at 0.7655 and rallied back to 0.7690.

Upcoming Events:

  • 09:30 BST – UK CPI
  • 10:00 BST – German ZEW Economic Sentiment
  • 10:00 BST – Euro Zone ZEW Economic Sentiment
  • 13:30 BST – US Building Permits
  • 13:30 BST – US CPI
  • 13:30 BST – US Housing Starts
  • 14:15 BST – US Industrial Production
  • 14:15 BST – US Manufacturing Production
  • 17:30 BST – FOMC Member Lockhart speaks
  • 18:00 BST – FOMC Member Bullard speaks
  • 23:45 BST – New Zealand Employment Change
  • 23:45 BST – New Zealand Unemployment Rate

Published by

Avatar

IC Markets

IC Markets is revolutionizing on-line forex trading; on-line traders are now able to gain access to pricing and liquidity previously only available to investment banks and high net worth individuals.