While today might be a quiet day with no major news coming out, the rest of the week is full with important news. We have data that will influence the AUD tonight with the RBA meeting minutes and employment data on Thursday. The GBP has important news each day of the week except Friday and also the EUR has volatility ahead with inflation data on Wednesday. The Japanese GDP data will also be released Wednesday morning. Also Wednesday we have the FOMC meeting minutes, which will be highly anticipated.
Currencies
EUR/USD – when we saw the break of the support around the 1.1375 level we headed further down. The move was also bolstered by strong data out of the US which is confirming the US economy is doing well, and this in turn could increase the chances we will see the FED raise the interest rate next month, although the chance of this happening remains not that high at the moment.
USD/JPY – is trading between the 108.2 and 109.5 level for the past week and we can expect to break out his band in the coming days as we get more data and especially the Japanese GDP data on Wednesday.
GBP/USD – is still trading down as sentiment has changed in both the USD and the GBP. The USD due to some better data and the GBP mainly due to weak data and also the everlasting Brexit fears.
Indices
Dollar Index – is trading around the resistance at the 94.570 level and if we manage to breach that level we are close to finally breaking the downwards pattern, although that most likely will depend on the tone of the FOMC meeting minutes on Wednesday.
S&P 500 – reached again the support on Friday, this time around the 2036 level and is currently moving up alongside higher energy prices. We can also see we are in a downwards trend at the moment.
Commodities
Gold – is trying to break through the resistance around the 1276 level and appears to succeed for the time being. A lot will depend on the sentiment in the USD and especially the FOMC minutes. If these indicate that we still have to wait for a further rise in the interest rate, we could see a quick move towards the 1300 level.
Oil – continues to move higher as Goldman Sachs (NYSE:GS) is saying that the oversupply in the market has reversed and the situation is now that there actually is a deficit. This comes as production has decreased in various parts of the world, albeit temporary, and also increased demand. OPEC production is still increasing though, and also the huge amount of inventories could be a reason for the rally to be limited. Nonetheless we are trading at the highest level in over 6 months.
Stocks
Apple (NASDAQ:AAPL) – on Friday it was reported that Apple would be investing $1 billion in Didi, and now the company announced that it plans an IPO in the US next year. Apple is trading near the lowest level in nearly 2 years.
Yahoo (NASDAQ:YHOO) – it is known that Yahoo is looking for some time now to sell its internet business and it reportedly has already attracted numerous interested parties. Over the weekend it appears that also Warren Buffet is interested.
by Shawn Koopman