The report presents a summary of all upcoming and recent fundamental events as well as technical analysis for the major markets.
DAILY REPORT - 20th AUG 2020
European stock markets opened lower in the early trading session today as world markets pulled back after the Federal Reserve expressed concern over the pace of recovery in the United States and the renewed political tensions between the U.S. and China. In the Cash Markets, the DAX futures contract in Germany traded 0.9% lower. The FTSE 100 futures contract in the U.K. inched down 1.2%, while CAC 40 futures in France was down 1.4%. The STOXX 600 edged 1.20% lower, at the time of writing.
Asia Pacific markets slipped overnight after Wall Street turned negative on the Fed’s apprehension. Mainland Chinese stocks were also lower, whereas, its benchmark lending rate remains steady. The Shanghai Composite was down about 1.1% while the Shenzhen component dipped 1.154%. Hong Kong’s Hang Seng Index dropped 1.52% at the time of writing. In Japan, the Nikkei 225 inched down 0.91% while the Topix index dropped 0.73%. Over in Australia, the S&P/ASX 200 fell 0.85%. Overall, the MSCI Asia ex-Japan index inched down 1.68%.
US stocks slipped after the release of the Fed Minutes. Apple became the most valuable company traded on the stock market and hit the $2 Trillion Market Cap target. Microsoft and Amazon each traded at about $1.6 trillion, followed by Google owned Alphabet, at just over $1 trillion. In the cash market, the benchmark S&P 500 Index fell 0.50% and settled at 3374.85. The blue chip Dow Jones Industrial Average inched down 0.34% and finished at 27692.88. The tech-based NASDAQ Composite closed 0.68% lower at 11146.46.
On the data front, euro area construction output for the month of June released earlier at 10 a.m. London's time today. The actual reading was 4.04% which was 29.37% higher than the previous data. The European Central Bank (ECB) will release the account of its previous monetary policy meeting later today. The last major data release today is from the US. The United States will release its Initial Jobless Claims Data for this week at 8:30 am local time today.
The dollar was flat at 92.983 on Thursday morning over disappointing minutes from the last policy meeting of the U.S. Federal Reserve. The USD/CNY pair inched up 0.02% to 6.9202. USD/CAD inched up 0.11% to 1.3223 and NZD/USD fell 0.40% to 0.6531, at the time of writing.
The Australian dollar fell below 72 cents and is trading at $0.7185 after hitting an 18-month high of $0.7275 before the meeting. Japanese yen futures fell to 0.943000. EUR/USD traded 0.1% higher at 1.1849 after a similar sharp drop. GBP futures fell 0.33% to 1.3077 while Euro futures were down 0.35% and were trading at 1.1821,
In the Commodity Markets, oil prices weakened after the release of the Fed’s minutes. The minutes amounted to a warning about the recovery in demand while U.S. oil inventories dropped for a fourth straight week. U.S. crude futures traded 1% lower at $42.69 a barrel, while the international benchmark Brent Crude inched down 0.8%, to $45.01 a barrel.
In the Precious Metals Market, Gold advanced after the sharp drop in yesterdays session. Spot gold rose up 0.9% at $1,946.09 per ounce, and gold futures dropped 0.7% to $1,955.85 per ounce. Silver inched up 1.2% to $27.05 per ounce, platinum increased 0.8% to $938.81, and palladium advanced 0.3% to $2,163.50.
In the Cryptocurrency Markets, Ripple was exhibiting early signs of momentum, and rose 10.27%. Bitcoin dropped 0.476% to $11,701 and Ethereum inched down 0.951% to $404.03 respectively in the last 24 hours. Litecoin fell 4.04% to $62.16, and Dash dropped 1.16% to $88.55, at the time of writing.
TECHNICAL SUMMARY
EUR/USD
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EUR/USD D1
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TRADE SUGGESTION- SELL AT 1.18502, TAKE PROFIT AT 1.17926 AND STOP AT 1.19166
USD/CHF
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USD/CHF D1
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TRADE SUGGESTION – BUY AT 0.91427, TAKE PROFIT AT 0.92321 AND STOP AT 0.90536
EUR/GBP
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EUR/GBP D1
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TRADE SUGGESTION- BUY AT 0.90370, TAKE PROFIT AT 0.90765 AND STOP AT 0.89571
AUD/USD
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AUD/USD D1
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TRADE SUGGESTION- BUY AT 0.71716, TAKE PROFIT AT 0.72735 AND STOP AT 0.69971
NIKKEI 225
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NIKKEI 225 D1
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TRADE SUGGESTION- BUY AT 22800, TAKE PROFIT AT 22999 AND STOP AT 22587
FORD MOTOR CO.
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FORD MOTOR CO. D1
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TRADE SUGGESTION- SELL AT 7.00, TAKE PROFIT AT 6.70 AND STOP AT 7.48
CRUDE OIL
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CRUDE OIL D1
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TRADE SUGGESTION- BUY AT 42.64, TAKE PROFIT AT 43.67 AND STOP AT 41.19
BTC/USD
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BTC/USD D1
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TRADE SUGGESTION- BUY AT 11665.07, TAKE PROFIT AT 11988.19 AND STOP AT 11416.62
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