ECB US hand in hand boomed the market, Today?

(Source: KVB PRIME)

Equity market:

Winter is coming back to US stock market after one-day spring. SP 500 downed by 1.76% to closed at 3339.19. NASDAQ dropped by 2.12% to close at 11154.12, and DJ decreased by 1.45% to close at 27534.58. Oil and shale gas leaded the fall.

The European market also suffered, though less than their US counterpart. DAX fell by 0.21%, closing at 13208.89 while FTSE closed down 0.16% at 6003.32.

Chinese market opened in the green but slide drastically  in the afternoon. As of close, Shanghai Stock index closed down by 0.61%, SZSE Component Index slipped 0.92% and GEM index loss another 1.6% chunk.

Precious metal forward contracts:

Gold price reconsolidated at around $1945 in Asia Market. Its price was strengthened due to weak USD and climbed back to $ 1955. The price hit $1966.29 and followed by $20 fall and downed by 0.03% to close at $1945.60 per ounce.

Sliver kept dropping, losing another 0.33%, close at $26.88.

Oil forward contracts:

WTI reconsolidated between$37.6-38 and started to fall when the EURO market opened and hit the bottom at $37.16. Price recovered slightly and closed down by 2.09% at $36.82 per barrel.

Brent oil price dropped another 2.12%at $39.74.

Currency Pairs：

USDX：closed up 93.37 -0.150%

EUR/USD：closed up 1.18178      -0.129%

GBP/USD：closed down1.27987 -1.519%

AUD/USD:  closed down0.7253 -0.378%

NZD/USD：closeddown0.6643   -0.560%

USD/CAD：closedup1.31901      -0.340%

USD/JPY：closed down106.134   -0.040%

Global fundamental ：

US：

US released the figure of last week unemployment benefits claim,which accounted to 0.884 million and beaten the expectation of 0.846 million as the market expected the figure to stay the same. US PPI last month is 0.3% better than expectation lower than previous 0.6.

Current unemployment support funding from the Trump government permission is running out. Both States of Texas and Montana were informed that they will not receive support fund after 5^th Sep. There is no further stimulus plan.

Europe

The ECB kept its main refinancing rate unchanged at 0% and pledged to buy up to €1.35 trillion worth of debt through June 2021 under its Pandemic Emergency Purchase Programme on September 10th. ECB also stated they will target inflation at 2% to maintain the stability of economic. Christine Lagarde, President of the European Central Bank, said that she will pay close attention on the EUR appreciation.

European Commission threatened to cancel Brexit negotiation if UK government does not void their legislation draft by the end of the months.

World Gold Council stated that the funds will continuous to invest in Gold or related financial product from the beginning of the year. But in this month, the amount is at a new low for 2020. Gold ETFs invested in more than 39 tons of gold which equal to $2.1 billion or 0.9% of total amount of the managed funds.

Kuwait set crude oil official selling prices for Asia at a rate which is $0.5 lower than the spot; and for the USA, $0.85 higher； for Westand North Europe, $1.75 higher.

Today’s currency pairs：

EUR/USD&GBP/USD

Following on our yesterday strategy, we have released 40 pips for EUR but we did miss out from the sequent 40 pips increase in this currency pair. Our layout is based on our risk management and price statics. For GBP, our strategy provided us with more than 200 pips as our predicted that the currency pair will return to 1.30 and then fall. We still recommend mid to long term shorting of EUR and GBP against USD. For short term, GBP dropped too fast and associated with tonight UK GDP, it is reasonable to released the profit and wait for price reconsolidating. As there will be further drama between the UK and the EU,  We would expect GBP will down to 1.262 and EUR down to 1.1754.

(Source: KVB PRIME)

AUD/USD

AUD price did not follow with our prediction and climb back up during EURO market time,even though the price fall back after the US market opened. In the mid term, we would like to maintain our strategy. In term of the target, we set our short-term target at 0.724 and 0.714 for mid-term. 

(Source: KVB PRIME)

XAU/USD

We overestimated the capital investor’s passion when there is positive fundamental during the EURO market. The price kept climbing as it was  driven by weak USD. The price went back to $1944 during the US market time. Currently, the price is supported by the EMA but shows a price top pattern. We can expect $7 profit margin below $1944.

(Source: KVB PRIME)

USDX

While we expected that USDX to hover between a 10 cent drop and a 15 cent increase, comparing to the actual market movement where there was a $0.5 drop, followed by a $ 0.76 rebound, our prediction has fall short. Our strategy is based on shrinking price range in the pass week and with reasonable risk. Tonight, we predict that the UK GDP would put pressure on the USDX but US CPI will boost it. Thus, we will attempt to capture the $0.1 drop and the $0.2 rise is second move for tonight.

(Source: KVB PRIME)

Use at your own risk disclaimer

The content contained herein does not construe any form of advice and the user must not take this as such. We do not accept any liability for the direct or indirect usage of the content held in this article. We strongly advise that you obtain independent financial, legal and tax advice before proceeding with any currency or spot metals trades.