Summary:
-
Polish zloty underperforms amid European turmoil
-
Korean KOSP200 tries to recover after recent losses
-
OIL pulls back ahead of the Iranian sanctions
The past few weeks were far from good for the Polish currency as zloty was pressured by the European political turmoil. In turn USDPLN revisited this year’s highs and found itself close to the upper bound of trading range from the past couple of months. Indeed, data from the Polish economy was quite weak recently but given how passive Monetary Policy Council is at the moment PLN is mostly impacted by the global developments. Potential improvement in Rome-Brussels relations could spark an upward move on both euro and zloty. On the other hand, if no progress is made both currencies may remain under pressure. USDPLN moved into 3.80-3.85 range where gains were halted in the first half of the year. Will the upcoming days bring reversal or will the pair climb further towards highs from 2017?
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app
Source: xStation5
The latest sell-off on the equity markets took its toll all around the globe. Both Asian and US indices experienced severe declines. The bearish momentum eased somewhat recently giving hope that the worst is already over. Korean KOSPI (KOSP200) was one of the most impacted equity indices as it fell all the way down to the 61.8% retracement of the upward impulse started in 2015. It seems that there is a big chance that the index will at least partially recover. Moreover, it is worth to note that arms of the triangle formation the price was moving within in the first half of the year intersected. The moment of intersection is often viewed as the potential end to the breakout from formation.
Source: xStation5
The last market we will take a look at is OIL. The US sanctions on Iran will take full effect next week but their impact was in big part already priced in. However, given the latest declines on the oil market as well as rising inventories in the US (it can be ascribed to the maintenance season in the US refineries that is coming to an end) there is some space for recovery. Additionally, Brent (OIL) pulled back to the support level at $75.50 handle. A notch below this hurdle one can find the ascending trendline that may also serve as support. API weekly oil stocks data will be published this evening and it is expected to show another week of rising inventories.
Source: xStation5
