The US and China again influence markets

By 08/10/2019 No Comments
trading review

Last night, futures for US indices fell: Dow Jones, S&P 500, Nasdaq Composite lost an average of -0.4%. The fall of the indexes occurred after the US government announced that it would add 8 Chinese organizations to the blacklist and forbid them to cooperate with American companies. Amid this news, Asian stocks rose modestly on Tuesday, as investors are wary of the outcome of trade negotiations between the US and China.

Forex Calendar
Forex calendar Oct 8 

At 15:30 (GMT+3) in the US will be released the producer price index (PPI) for September. A figure above 0.1% may support the dollar (USD).

At 20:50 (GMT+3), the speech of the head of the US Federal Reserve Jerome Powell is expected.

Commodity Markets
Gold. Gold fell significantly on Monday. The precious metal fell below the key support level of $1,500 since the hope of lowering the Fed rates decreased. On Tuesday, October 8, gold futures cost $1,492 per troy ounce.

Oil . Oil is up 0.5% on Tuesday due to riots in Iraq and Ecuador. On the morning of October 8, Brent futures were trading at $58.7 a barrel, and WTI crude oil was $53.

The dollar index (DXY) is stable on Tuesday because the markets are not sure about the next Fed rate cut. Tuesday morning DXY is 98.9 against a basket of major currencies.

Analysts suggest that the UK and the EU may not reach a positive agreement. Bloomberg experts expect a hard Brexit in January 2020. Such market sentiment is pushing the pound down. On Tuesday, the pound is -0.1%. On the morning of October 9, the GBP/USD pair is trading around 1.2282.

The euro is stable on Tuesday. In the morning, the EUR/USD pair is trading around 1.0981.

The dollar is recovering against the yen. On Tuesday morning, the pair USD/JPY is trading near 107.3.

On Tuesday, the dollar is down against the franc. Today, the USD/CHF is trading at around 0.9943.

Daily Trading Signals

Trading signals oct 8 fx Trading signals oct 8 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.