Morning Call. Market Overview for 09.08.2016
09.08.2016
The Big Picture:
The Dax has not been able to break the 10500 level. A factor for this being weakness in the British Pound against the Euro. Since the Bank of England´s decision to lower rates and expand it quantitive easing last Thursday. The Pound has lost 2% against the USD, it is trading at the psychological level of 1.30 and so, near its all-time low of 1.2798. The Bank of England has vowed to counteract the negative implications of the BREXIT, by utilizing an expansive monetary policy.
Quite in contrast, is the position of the US Federal Reserve, where the growing US economy might prove hawkish and to a restrictive monetary policy. These two contrarian policies might well lead to further weakness in the British Pound.
Pre-Market direction of US Futures (07.00 CET)
The S&P is trading unchanged
DAX
The DAX is in an upward trend.Main resistance is seen at 10,500. A breach of this level will see more potential to the upside.
Euro / USD
The Euro is trading sideways in a large trend. Support is at 1,0822, resistance at 1,1429.
JPY / USD
The USD has turned positive against the Yen. Biggest support will be found at 100,31.
Gold
Gold is trending upwards. The next major resistance is at 1375.
WTI Oil
Oil is trading a technical bounce. The midterm downward trend is intact
Overnight
The week on Wall Street began with light profit taking, prices mildly falling. Health and Consumer Stocks showing the largest losses. Asian stocks were able to make gains, the Nikkei 225 gaining 0,4%. Nintendo having gained 5%. The USD is trading in positive territory against the Euro and slightly lower to the Yen. Gold is trading lower, whilst Oil is showing slightly larger weakness after yesterday´s gains.
Today´s numbers (CET)
08:00: German Trade Balance.
16:00: US Wholesale Inventories
Company news :
DAX Quarterly Earnings: Münchner Rückversicherung
USA Quarterly Earnings: Walt Disney, amongst others
RoboForex Analytical Department
RoboForex Analytical Department
Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.