1. Forex Preview: Safe-havens under pressure
Safe-haven currencies including the Japanese yen and Swiss franc were under pressure as risk appetite returned and on expectations that policymakers would unleash new stimulus to accommodate a slowing global economy. The dollar index, which measures the greenback against six major currencies, was steady at 98.15 as of 7:55 GMT this morning, close to a two-week high reached on Friday. The EUR/USD continued to suffer from weak economic data last week and is currently awaiting today’s CPIs at 9:00 GMT, the euro may also get some support from Germany’s statement that they are ready to invest 50 Billion if a crisis hit.
2. Risk Appetite Recovers
Stocks in Europe and Asia edged higher today as U.S. Treasury yields bounced after plunging last week. Global bourses look set to return to a slightly bullish momentum. Overall we see a slight risk-on mood on Monday, yet it will be very moderate and could turn any moment if we see progress on any geopolitical front.
3. Oil Prices Edge Higher
Elsewhere, oil prices rose more than 1.5% following a weekend attack on a Saudi oil facility by Yemeni separatists and as traders looked for any signs that Sino-U.S. trade tensions could ease. Earnings were capped by a robust dollar and an OPEC report last Friday which rather showed a decreasing global oil demand and bearish fundamentals for the black gold.
4. Gold Lower
Gold prices dipped this morning due to a stronger U.S. dollar and a recovery in equities. Given the simmering geopolitical tensions amid US and China, any new provocative moves from either side could push safe-havens higher, so the current XAU/USD levels could be an interesting re-entry for buyers who missed a dip before. Elsewhere, BTC held above the 10k over the weekend and pushed to break out of its recent range above 10.6k which could ignite more buying interest if the price remains above that on a daily close basis.
You can find and trade CFDs on all of the above-mentioned assets on BDSwiss Forex/CFD platforms.
*Financial Times Aug 19, 2019 03:07 AM ET
**Reuters Aug 19, 2019 3:53 AM ET
***CNBC Aug 19, 2019 2:48 AM ET
****Investing Aug 19, 2019 05:20 AM ET