Market Update – 23-08-2016
AvaTrade | Aug 23, 2016 04:51AM ET
EUR/USD – moved back up again after trading down in the morning on the backdrop of a stronger USD due to the comments over the weekend. The USD weakened over the course of the day though, and so we are getting close to the levels we were seeing late last week. We will be looking at the data out of the Eurozone and the US today.
USD/JPY – was unable to sustain its gains and is trading lower again, as the USD is not able to strengthen and hold on to its gains. It appears that the comments from the different FED officials and also from BOJ Governor Kuroda have only a very limited impact at the moment. It is unlikely that the same will happen when Yellen will speak though.
GBP/USD – moved all the way back up to trade again at the highest level since the beginning of the month. The move up started during the afternoon as the USD weakened around that time, apparently when the US started to wake up. This week there is no significant news out of the UK, except on Friday the GDP.
NZD/USD – moved higher after comments from RBNZ Governor Wheeler that there is no need to change its monetary policy for the time being, meaning we will see the interest rate likely unchanged. He also said that the NZD is too strong, but the comments had obviously not the desired effect, as the NZD strengthened further due to his comments, strengthening to within 5 pips of the highest level in over a year.
DAX 30 – we can see the we are trading below the downwards trend line on both the daily and the weekly chart.
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S&P 500 – closed only slightly lower as during the day the USD weakened again, which benefited the equity market. We can see a lot of volatility due to the low volatility.
h3 Commodities/h3Gold – was unable to break below the support around the 1332 level, and corrected upwards over the course of the day as the USD in general was unable to sustain its gains.
Oil – dropped below the upwards trend line as Iraq and also likely Nigeria will be able to increase production. Iraq because it recently reached an agreement with the Kurds to export from the oil fields around Kirkuk and should increase experts by around 5%, and Nigeria because militants have apparently agreed to cease attacks on the oil infrastructure.
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