Morning Call. Market Overview for 18.08.2016
18.08.2016
The Big Picture:
The Dax trended downwards ahead of the Fed Minutes, losing 1.3%. The Fed Minutes offer a picture of Fed sentiment, giving an insight into which monetary direction the Fed is considering.
Yesterday´s Minutes were not as insightful as expected, due to the lack of important economic data at the time of the meeting. As such, the weakness in US GDP for the second quarter and the markedly improved employment numbers for July, were not available to arrive at a clear opinion. In response, the markets interpreted yesterday´s Minutes into the Fed being in no rush to raise rates this September. More clarity is expected from the Fed´s Chair, Janet Yellen, at the annual Fed Symposium in Jackson Hole.
Pre-Market direction of US Futures (07.00 CET)
The S&P is trading up at 0.08%
DAX
The DAX is in an upward trend. Next resistance is seen at 10860, support at the breakout level of 10500. We expect a continuation of the upwards trend.
Euro / USD
The Euro is trading sideways in a large trend. Support is at 1,0822, resistance at 1,1429. Short term, the Euro is trading an upwards trend, within the total sideways move.
JPY / USD
The USD is in the process of forming a quadruple bottom.. Biggest support, on a closing basis, will be found at 100.31.
Gold
Mid term, Gold is trending upwards, short term we are seeing a sideways move. The next major resistance is at 1375, support at 1300. Gold is forming a rising triangle.
WTI Oil
Oil is trending upwards. We expect a continuation of this trend.
Overnight:
The S&P 500 gained 0.19% on Wednesday after starting on a weak footing, only to recover ahead of the Fed Minutes. The up move being supported by St.Louis Fed´s Bullard, who sees no marked interest rate hikes in the coming two years. The release of the Fed Minutes offers more reassurance. The lower than expected Oil reserves, as well as the rising Oil price also adding support to the market. Asian markets traded positively in total. The Hang Seng gained gaining 1.6% and rising to a yearly high. The USD gained against Euro and weakend against the Yen. Gold traded up and Oil remained unchanged.
Today´s numbers (CET)
08:00 Germany: Producer Prices
14:30 US: Initial Jobless Claims
16:00 US: Early Indicators
Company news :
USA: Quarterly Earnings: Wal Mart, Applied Materials amongst others.
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.