analytics

Protective assets surged on weak US statistics

By 02/10/2019 No Comments
Trading Review

Yesterday, the low index of business activity in the manufacturing sector (PMI) of the USA caused a sale in the financial markets. The 47.8 is the lowest in the last decade, which is why traders began to worry even more about the trade and economic war of the United States and China, which leads to a slowdown in the global economy. A poor PMI may be a harbinger of weak Friday employment in the US agricultural sector, some analysts say.

World instability affects some currencies but makes defensive assets more popular.

Forex Calendar
Forex calendar Oct 2
 
At 11:30 (GMT+3), the index of business activity in the UK construction sector for September will be released. If the indicator is above 45, this will support the pound (GBP).

At 17:30 (GMT+3) a weekly report on US crude oil inventories will be published. A large reduction in stocks will be a positive signal for a commodity asset.

Commodity Markets
Gold. Gold rose after the publication of weak US indicators. On Wednesday, 2 precious metals began to decline in Asian markets. October 2, gold futures cost $1,475 per troy ounce.

Oil. The American Petroleum Institute (API) announced a decrease in oil reserves by -5.9 million barrels, after which the resource took off. On the morning of October 2, Brent futures rose 0.2% and traded at $59.3 per barrel, while WTI crude oil gained 0.5% to $54.2.

Forex
The dollar index (DXY) overcame a two-year high of 99.6 at night. This morning, the DXY is correcting at 99.2 against a basket of major currencies.

Investors are concerned about the political problems of the UK and the possible “tough” Brexit. Because of this, the pound is losing value. On the morning of October 2, the GBP / USD pair falls by -0.2% and is trading around 1.2264.

On Tuesday, the euro began to recover against the dollar. On Wednesday, the EUR/USD pair is trading around 1.0921.

Yesterday, the dollar fell against the yen and the Swiss franc. On Wednesday morning, the pair USD/JPY is trading near 107.7. The pair USD/CHF is growing at 0.3% and is trading around 0.9959.

Daily Trading Signals
Trading signals oct 2 fx Trading signals oct 2 commod
  
Important: this review does not contain trading recommendations and calls for transactions, all the opinions expressed are the personal opinion of the author. Traders are solely responsible for decisions made.