The US Dollar traded stronger against other major currencies, with the US Dollar Index (USDX) closing 0.38% higher, especially thanks to the job and wage growth reported for the US economy.
The strong Dollar and also possibly the rising 10 Year US Treasury Note yield could have had negative impact on the gold price. Also data from the Commodity Futures Trading Commission (CFTC) showed a new record amount of net short positions for gold, now at 13,500 (previous 3,100).
Equity indices traded overall again lower on Friday, with Asian and especially Chinese equity future indices under pressure on Monday, due to trade worries. US President Trump added pressure to the Asian technology sector by urging Apple (NASDAQ:AAPL) to transfer its production capacities to the US.
Many cryptocurrencies continued to face the sell-off over the weekend, until prices stabilized on Monday morning. Of the major cryptocurrencies especially Ethereum is affected, as over the weekend the price fell below $200 for the first time in more than a year.
One theory given by analysts for the plunge in Ethereum value, is that organizations which acquired Ethereum during their ICOs (Initial Coin Offerings) are now exchanging their Ethereum positions. Ethereum was especially popular with ICOs, which in many cases were accused of lack of transparency.
On Monday Denmark, Norway and Greece are reporting their inflation data. Russia will release its Quarterly GDP statistics and in the US Consumer Credit data for July is expected.
EUR/USDThe Dollar was one of the strongest currencies on Friday, following the Nonfarm Payrolls (NFP) showing 201,000 jobs added, which was above market expectations. Average Hourly Earnings were also up at 0.4% m/m (expected +0.3%) in August, and are showing the strongest growth in almost a decade.
European data was mixed, whit the European Gross Domestic Product (GDP) growing 2.1% y/y in Q2 (expected +2.2%) and the German Industrial Production down by -1.1% (expected +0.3%).
The Euro zone will be focused on the ECB Interest Rate decision this Thursday. While market consensus indicates no increases in rates, the verbiage of the central bankers’ statements could be nonetheless of relevance.
Pivot:1.1565Support:1.1531.151.1445Resistance:1.15651.15851.1615Scenario 1:short positions below 1.1565 with targets at 1.1530 & 1.1500 in extension.Scenario 2:above 1.1565 look for further upside with 1.1585 & 1.1615 as targets.Comment:the RSI shows downside momentum.
The Pound received support over comments that indicated that the European Union would be ready to work with the UK on a post-Brexit solution, while the issue of the Irish border is a significant obstacle for an agreement. The EU negotiator was reported to be disappointment that the UK recently failed to provide the promised data regarding trade between the British Island and North Ireland.
Despite also the Halifax House Price Index stable at +0.1% m/m in August (expected -0.3%), the Pound closed almost unchanged against the Dollar due to the Dollar strength following the NFP report in the US.
On Monday the UK will release Industrial Production, Manufacturing Output and Merchandise Trade statistics. Then on Thursday the Bank of England is due to announce its interest rate decision, which the majority of surveyed analysts believe to be unchanged.
Pivot:1.2935Support:1.29351.2961.299Resistance:1.28951.2871.284Scenario 1:short positions below 1.2935 with targets at 1.2895 & 1.2870 in extension.Scenario 2:above 1.2935 look for further upside with 1.2960 & 1.2990 as targets.Comment:as long as the resistance at 1.2935 is not surpassed, the risk of the break below 1.2895 remains high.
After reaching a new 2 weeks low during trading on Friday, oil stabilized, closing almost unchanged.
The US Baker Hughes Oil Rig Count was reported down by 2 operating oil rigs, now at 860. The number of oil rigs remained now for over 3 months unchanged in the range between 858 and 869 operating oil rigs. While pipelines especially in the US region of the Permian basin are operating at close to full capacity, restricting the transport of crude oil, multiple projects are underway to add pipelines so to increase capacity.
On Sunday it was reported that ISIS terrorist blew up and oil pipeline in the Kurdish region of Northern Iraq.
On Tuesday the American Petroleum Institute (API) will release oil stockpile figures, followed by the Energy Information Administration (EIA) on Wednesday.
Pivot:67.05Support:67.0566.566.15Resistance:6969.570Scenario 1:long positions above 67.05 with targets at 69.00 & 69.50 in extension.Scenario 2:below 67.05 look for further downside with 66.50 & 66.15 as targets.Comment:the RSI is mixed to bullish.
Equities were again und pressure on Friday, despite the positive NFP and Wage Growth data. The S&P 500 (US 500) closed lower for the fourth day in a row. Especially utilities (US Utilities ETF -1.12%) and real estate (US Real Estate ETF -1.06%) stocks came under pressure, while health care sector (US Health Care +0.18%) stocks closed overall slightly higher.
Tesla (NASDAQ:TSLA) (-6.31%) traded at its lowest level in five months after two senior executives of the company announced their permanent
departure from the company’s board and the controversial CEO Elon Musk appearing on a comedian’s talk show apparently smoking light narcotics (which are deemed legal in California).
Markets will be closely watching the news surrounding the announced departure of co-founder Jack Ma, from the e-commerce giant Alibaba (NYSE:BABA). The announcement was made over the weekend with the company clarifying on Monday that Ma would remain part of the board until 2020.
Only few companies are still due to release their quarterly earnings, such as Adobe (NASDAQ:ADBE) on Thursday.
Pivot:2873Support:287328652860Resistance:288528932900Scenario 1:long positions above 2873.00 with targets at 2885.50 & 2893.00 in extension.Scenario 2:below 2873.00 look for further downside with 2865.00 & 2860.00 as targets.Comment:the RSI advocates for further advance. The 20-period moving average has crossed above the 50-period one.