The Bullet Report: AS USD is sold off, GOLD rises while OIL collapses to 3 month low

By | August 3, 2016

The market has actually been very busy selling Dollars yesterday. Along with the exception of the Canadian Dollar which dropped significantly due to its correlation Along with oil prices, all majors gained significantly versus the American currency. Catalyst for the move continues to be last Fridays poor GDP Report which basically means that the market is reevaluating its timeline for the next potential rate hike.  Today’s spotlight will be the UK PMI data along Along with a string of US data to be released in the afternoon, including ADP employment, ASM manufacturing as well as Crude Oil Inventories. 

Currencies: As mentioned above, USD is being sold off despite a modest recovery seen in the Asian session. Dollar Index (95.228) continues to trade weaker versus major currencies and could test levels near 94.50-94.00 in the coming sessions. Most notable gained was the GBPUSD (1.3326) which jumped from 1.3170 to 1.3365 yesterday ahead of the BoE meeting tomorrow. USDJPY (100.99) tested 100.70 on the back of a stock market selloff while EURUSD (1.1208) rose sharply to 1 month highs of 1.1232 which is a very strong resistance level.

Stocks: Disappointment over the central banks’ actions in the last week has actually resulted in a widespread risk off attitude and a considerable amount of selloff in the market. The selloff in US equities confirmed short term topping. DJIA closed down -90.74 pts, or -0.49%, at 18313.77, comparing to record high at 18622.01. Asia follows Along with Nikkei trading down -165 pts, or -1% at the time of writing. Markets will wait for the US employment data later this afternoon to gauge further sentiment.

Oil and Gold: Oil prices fell to fresh 3 month lows yesterday as traders wait for Crude Inventories this afternoon to gauge supply/demand. U.S. oil is in a bear market after falling below $40.98 on Monday, putting it down more than 20% since early June. It settled down 55 cents, or 1.4%, at $39.51 a barrel on the Brand-new York Mercantile Exchange. October contracts for Brent, the global benchmark, settled lower by 34 cents, or 0.8%, at $41.80 a barrel. Both settled at their lowest prices since April. GOLD, which moves inversely to USD has actually managed to gain traction helping the yellow metal rise to a 2 week high. $1375/$1381 now remain the considerable resistance levels to break.

The post The Bullet Report: AS USD is sold off, GOLD rises while OIL collapses to 3 month low appeared first on Forex.Info.

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