1. Strong US Retail Data Pushes the USD Higher
The dollar remains overbought, boosted by upbeat U.S. data. A weak EUR and an ailing GBP continue to be a no match against the greenback. The EUR, in particular, is at risk of falling a lot further with the EUR/USD currently being very close to breaking the key 1.12 support. Elsewhere, the New Zealand Dollar pushed considerably higher after an upbeat New Zealand CPI. Today the NZD continued to push higher supported by yesterday’s data and a mild recovery in oil prices.
2. Trump Spreads New Trade Concerns
Today, US indices futures point to a muted open after US President Donald Trump made some rather concerning comments regarding the progress of the US/China trade talks. European bourses also started the day on a bearish note after Trump reignited fears over trade. Specifically, the DAX is rangebound but interestingly remained more positive yesterday despite a weak ZEW, which makes for a possibly interesting selling opportunity.
3. Gold Could Push Higher
Gold prices edged lower on Wednesday, as the dollar firmed, while hopes of an interest rate cut by the Federal Reserve and global trade uncertainties kept a lid on declines. XAU/USD still held above the $1,400 level and given the apparent risk-off mood of today’s markets it could strike back up as soon as stock markets show more weakness.
4. Oil Recovers
Elsewhere, oil prices rose after recording steep falls in the previous session. Oil prices had reacted with a strong sell on comments from Trump and Pompeo that positive headway was made between the US and Iran yesterday, which was later however refuted by Iran. It is important to keep an eye out for the crude oil stocks later this afternoon.
5. Cryptos Plummet
Meanwhile, cryptos continued to decline across the board with NEO leading losses. Bitcoin (BTC/USD) and most other cryptocurrencies are under pressure today, continuing a multiday downward trend. Regulatory uncertainty has been a driving force behind today’s crypto declines. US President Donald Trump comments that cryptos “could not be trusted” and that their value is “highly volatile and based on thin air” have pushed bitcoin and other leading cryptocurrencies lower in the past three days. What is worse, Treasury Secretary Steven Mnuchin, Federal Reserve Chairman Jerome Powell, and a number of lawmakers have also spoken out about their concerns regarding cryptocurrencies. Bitcoin dropped further today and is currently clinging on to find a bottom around 9,5k after it fell to a flat 9k even overnight.
You can find and trade CFDs on all of the above-mentioned assets on BDSwiss Forex/CFD platforms.
*FXStreet Jul 17, 2019 03:07 AM ET
**Reuters Jul 17, 2019 3:53 AM ET
***CNBC Jul 17, 2019 2:48 AM ET
****Seeking Alpha Jul 17, 2019 7:33 AM ET
*****Investing Jul 17, 2019 6:25 AM ET