Bullet Report: EUR/USD at 1 Month Highs | GBP in the Spotlight

Posted On 16 Aug 2016

Tag: Asian Stocks, EURGBP, EURUSD, Gold, USDJPY

US equities closed the week on a high note, a pattern that seems to be repeating its self on a daily basis. Actually last Thursday was the first time since 1999 that all 3 major indices in the US closed at record highs. As for OIL, after a bad start, managed to finish the week with 10% gains. Looking forward, this is an action packed week in terms of news data. Wednesday will feature the FED minutes while on Thursday we will have the US PPI report. It is a big day today for the UK as well, as CPI data will be released today. The following day the U.K. employment report is released, which will give an indication if firms began laying off employees following Brexit.

Currencies: USDJPY has sunk to 1 month lows overnight, breaking 101 support levels, and reaching as low as 100.15. EURUSD is surging higher at the moment to 1.1240, reaching levels not seen since 24th of June, Brexit day. With GBP still under pressure (1.2885) , EURGBP is at the highest level since august 2013.Overall, it is a weak USD day so far amid low volume trading.

Stocks: Shares in Asia were mixed on Tuesday, with record gains in the U.S. market overnight offset by a dip in oil prices and a firmer JPY. On Monday, the S&P 500, Dow Jones Average and the Nasdaq Composite all reached record highs — a feat they accomplished last Thursday for the first time since 1999 — on the back of hopes for production cuts in the oversupplied oil market.

Oil and Gold: After a week of 10% gains, and a renewed rally overnight, Oil traders are cashing in their profits which resulted in prices dipping a little bit. Growing expectations that OPEC members would agree to a production freeze have supported prices since last week. The bullish sentiment was further heightened after the two largest oil producers — Saudi Arabia and Russia — indicated their support for such a limit. GOLD rose overnight, backed by a drop in stock market sentiment in Asia. The yellow metal moves usually in the opposite direction than stocks. Although rising, the price has been stuck in a range in the last two weeks, flip flopping between $1330 and $1370

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