Currencies
EUR/USD – tried to reclaim the 1.12 level again during the day as the USD lost some of its strength over the course of the day, but was unable to do so. We are seeing a resumption of the downwards move which started on Friday and another attempt to close below the support around the 1.117 level. We have some European data this morning as well as consumer confidence out of the US.
USD/JPY – was unable to hold onto its gains as also here the USD weakened as the day went by. This morning we are seeing a continuation of USD strength and are near the highs reached yesterday. The slightly better than expected data this morning out of Japan was not really able to move the needle much.
GBP/USD – remains trading lower due to the stronger USD. We will be waiting for more indications and comments that might be giving us more indications what the FED will do, but also data out of the UK starting tomorrow.
USD/CAD – we can see a struggle in order to stay above the 1.30 level, which so far appears to be holding.
Indices
DAX 30 – moved up yesterday, but is still trading below the downwards trend line. When we are able to break above it, we will get a new bullish signal.
Dollar Index – was unable to close much higher yesterday, and lost a lot of strength during the day, but we can see that this morning we are nearing yesterday’s highs again.
S&P 500 – the support around the 2167 was able to hold as we saw the S&P correct and even move above Friday’s level. This mainly comes due to a rise in the financial sector.
Commodities
Cotton – after moving sharply up mid-July, we are coming down back again fast and are nearing the support around the 64.25 level.
Gold – after reaching the lowest level in a month yesterday, gold has been moving up a little bit, as some who are skeptical that the FED will act in September are seeing this as an opportune moment to enter some long positions on gold. The nearest resistance can be found once more around the 1332 level.
Oil – moved only slightly down in the end as the USD losing some of its strength over the course of the day. Besides the strength of the USD, the main things which are influencing the price of oil are the inventories and the production numbers, and the upcoming meeting of OPEC countries in the second part of September.
Stocks
Apple (NASDAQ:AAPL) – will wait to see what the EU Commission will conclude regarding the tax benefits Apple received from Ireland. If the EU Commission finds that this was done illegally, Apple could be forced to pay billions of unpaid taxes.
Apple will hold its yearly event next week at which it expected to unveil new products most notable the new iPhone.