Market Update – 12-08-2016

Currencies

EUR/USD – has moved further down after not being able to break through the downwards trend line and continued after the better than expected data out of the US. However, today we will get a lot of important data with GDP data out of Germany and the Eurozone and retails sales data out of the US.

EURUSD

USD/JPY – is continuing to move up as the USD is strengthening once more. Also the strong equity markets is weakening the JPY a bit as there is confidence in the market and more risk appetite.

GBP/USD – remains trading below the 1.30 level as the GBP remains quite heavy as there remains little optimism for the UK economy. Good data out of the US today and we could possible move down to test the lowest levels reached back last month.

USD/CAD – as we could expect we are seeing further downside as oil is moving higher. We have broken below the support that was in place around the 1.30 level.

usdcad

Indices

S&P 500 – closed at a new record high, boosted by the energy sector which benefitted from the rising oil price.

Commodities

Gold – moved down as the USD strengthened. In addition, the rally in the equity markets is also decreasing the demand for a safe haven and people are looking to other options a higher return. In addition, it is still possible we will see the FED raise the interest rate, as long as the data remains strong.

Oil – was trading slightly lower for the better part of the day, but once again, comments caused oil to move firmly up. Saudi oil minister said that there indeed will be a meeting next month between OPEC and non-OPEC countries to discuss the oil market, once again fuelling speculation that a production freeze could be on the table.

We broke through the resistance around the 43.25 level and are currently trading at the highest level in 2 weeks.

oil

Stocks

Alibaba (NYSE:BABA) – reported strong earnings with a higher than expected revenue of $4.84 billion. It reported especially strong growth through its mobile app.

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