- The main theme of the Asian session was strong declines in China's indices, with the Hang Seng losing 1.34% after import and export data. The readings indicated a 7,3% import y/y decline and 9,5%y/y decline in exports, respectively, which caused concerns abouth health and future of China's economy. CNH.cash loses more than 3%
- Mixed stock market sentiment in Europe, with the DAX losing, the CAC40 gaining just 0.03% and the FTSE100 adding 0.21%.
- Industrial production data from Germany showed a 0.8% m/m decline against expectations of -0.2% m/m.
- The beginning of the forex session brought a strengthening of the US dollar, which was amplified after the 14:30 data, but later the USD gave back some of its gains. In the evening hours, the US currency strengthened 0.3% to CAD, 0.2% to EUR and GBP, and 0.13% to CHF. The dollar, however, loses 0.35% against the yen and 0.2% to the NZD.
- EURUSD tests key, psychological support zone at 1,07 level
- At 13:30 BST data on unemployment claims from the US were published. The lower number of applications (216,000 versus the expected 234,000) suggests a very healthy labor market. The data still gives a chance for a hike in September.
- On Wall Street, we are seeing mixed sentiment, with the Nasdaq losing 0,7% during today's session, due in part to good labor market data, and very strong declines in China. China ban againt iPhones ended with 3,3% sell-off of Apple shares. The Dow Jones is 0.16% higher, while the S&P500 is losing 0.29%.
- On the back of a still strong dollar, we saw declines in the precious metals market. Silver lost almost 1% today, while platinum and palladium lost 0.7%. and only gold managed to hold on to the upside, but the scales of wzrsots reach only 0.1%.
- Oil did not react to the inventory data. Black gold prices are recording declines today, but this appears to be only a correction after the recent strong rally.
- Natgas is strengthening after the EIA data. US gas inventories came in below forecasts at 33 bcf versus 42 bcf forecasts and 32 bcf previously.
- Precious metals are under US Dollar pressure, Gold is flat at 1918 USD level but Silver is losing 1% after fall below 23 USD per ounce
- Cryptocurrency market sentiment remains consistently weak, with Bitcoin costing $25,800 and clearly struggling to overcome $26,000. Pressure on risky assets is coming from the dollar index, USDIDX climbed to 6-month highs today
Bears on EURUSD are gaining momentum and in the bearish, basic scenario sell-off may stop at 61,8 Fibonacci level at 1,06. Source: xStation5
