Currencies
EUR/USD – is pretty much unchanged from yesterday and is testing the support around the 1.1116 level again. The main difference with yesterday is that we will be getting some European data this morning.
USD/JPY – is moving down as there remains some concern regarding the state of the Chinese economy. The big question remains whether the BOJ will change its monetary policy later this month.
GBP/USD – is moving down again and is nearing the support mentioned yesterday. It appears that nobody wants to become the new PM, as all the main players have announced that they are stepping down. This started with PM Cameron announcing this the morning after the Brexit vote, and last week with Boris Johnson announcing he would not be running, and yesterday with Nigel Farage also stepping down. Today BOE Governor Carney will also speak again and we will get the BOE financial stability report alongside some other data this morning.
AUD/USD – is moving down as the data was not that strong and the RBA also said that it will wait to assess how the economy and the data develops before changing its policy. It kept the interest rate unchanged which was expected, but with the risks at the moment and the low inflation, there is a good chance that this will be changed in the future.
Indices
DAX 30 – has moved up to reach the resistance around the 9815 level and is having some difficulty in breaching this level.
S&P 500 – is moving down as it remains struggling with the resistance around the 2100 level.
Commodities
Gold – it appears we indeed have seen a double top as gold continues to move down even though it is still too early to be sure, especially since there is still uncertainty in the markets.
Oil – is moving down even though the cease fire in Nigeria has become uncertain with renewed attacks. However we can see that the resistance around the 49.40 level was able to hold. There are more and more concerns on the demand side as well due to global uncertainty and fear that global economic growth will slow down. In addition production by OPEC is increasing and so is production out of Russia. The question is when the same will happen in the US. When the number of active rigs started to drop, it took quite a while before we saw production drop, and it appears we are now on the opposite track, with the number of active rigs increasing, but production (still?) not increasing.
Stocks
Tesla (NASDAQ:TSLA) – once again failed to meet its delivery target, but says this is due to a vast increase in production that is has worked on.