Market Review 24-08

Market Review 24-08

USD Could Fall Further on Trump’s Troubles, US-China Trade Worries

By Martin Essex

 

USD STILL UNDER DOWNWARD PRESSURE

 

Prospects for the US Dollar look poor near-term as the US-China trade war escalates, with both sides implementing 25% tariffs on $16 billion of each other’s goods despite low-level trade talks in Washington designed to bring the US and China closer together.

 

In addition, concerns are mounting about criminal probes into US President Donald Trump’s former personal lawyer Michael Cohen and ex-campaign chairman Paul Manafort. Investors are considering whether the setback would hurt his Republican Party’s mid-term election prospects and EURUSD has rallied as a result, along with several other currencies and commodities.

 

https://www.dailyfx.com/forex/market_alert/2018/08/23/USD-Could-Fall-Further-on-Trumps-Troubles-US-China-Trade-Worries.html

 

 

Facebook users ‘don’t seem to care’ about data scandal, fake news. Analyst says buy on the dip

By Thomas Franck

 

  • Facebook and Instagram users are not worried by recent “chatter” about the Cambridge Analytica scandal or concerns about fake news, according to Piper Jaffray.
  • Analyst Mike Olson maintains his bullish overweight rating on the stock and his $200 price target, reflecting more than 15 percent upside from Tuesday’s close.
  • Shares closed down 18.9 percent on July 26 after the Menlo Park, California-based company missed projections on revenue and daily active users.

 

https://www.cnbc.com/2018/08/22/facebook-users-dont-seem-to-care-about-data-scandal-analyst-says.html

 

 

Yen Falls After Rise in PMI, Looks to CPI and Risk Sentiment

By Megha Torpunuri

 

The Japanese Yen slightly fell against the US Dollar as local economic data crossed the wires early into Thursday’s Asia Pacific trading session. August’s preliminary Nikkei manufacturing PMI data clocked in at 52.5, a slight uptick from the prior 52.3, indicating that manufacturing growth has quickened.

 

Looking ahead, the risk-averse currency may pare its losses following the release of July’s year-over-year CPI data, which is expected to rise to 1.0% from May’s 0.7%. The unit also faces the release of local retail trade and employment data next week. Furthermore, the Yen will also closely eye risk trends, as markets’ recent rally off of a proposed NAFTA deal between the United States and Mexico could impact the currency’s next moves.

 

https://www.dailyfx.com/forex/market_alert/2018/08/23/Yen-Falls-After-Rise-in-PMI-Looks-to-CPI-and-Risk-Sentiment.html

 

 

AUD/JPY Review: AUD drops 0.6 percent on political uncertainty

By Omkar Godbole

 

The AUD/JPY fell 0.6 percent to a session low of 80.73 in Asia as domestic political uncertainty likely forced investors to venture out of the AUD longs.

 

The upheaval in Canberra took a turn for the worse earlier yesterday as the government adjourned parliament to resolve a leadership crisis that has crippled PM Malcolm Turnbull.

 

Further, the trade tiff between the US and China is set to escalate further as the former is set to begin collecting tariffs on $16 billion worth of Chinese goods from today.

 

As a result, there is little incentive to hold the Aussie dollar. What’s more, the renewed trade war fears could put a bid under the anti-risk JPY. So, it seems safe to say that for AUD/JPY, the path of least resistance is to the downside.

 

https://www.fxstreet.com/news/aud-jpy-review-aud-drops-06-percent-on-political-uncertainty-201808230328

 

 

The Russian ruble is on track for its lowest close in 2 years as Washington ramps up sanctions on Moscow

By Gina Heeb

 

The ruble was down 1% to 67.90 per US dollar after the Treasury Department blacklisted a set of Russian companies, entities, and individuals accused of helping North Korea evade international sanctions.

 

Under United Nations and US sanctions against North Korea, meant to penalize Pyongyang for continuing to develop its nuclear weapons program, the country is barred from trading oil and other commodities.

 

But as Congress considers rolling out its own round of sanctions against Russia, which could include restrictions on dollar settlements for Russian banks and purchases of Russian debt issues, Biryukov said the country could start to feel the pain of economic penalties.

 

“The imposition of such sanctions could have significant economic effects, as it could impact capital flows and the ability of Russia and Russian entities to borrow in the international capital markets,” he said.

 

https://markets.businessinsider.com/currencies/news/russian-ruble-worst-close-2-years-us-ramps-up-sanctions-2018-8-1027477491

 

 

Lira falls as Turkey says U.S. waging ‘economic war’

By Orhan Coskun, Daren Butler

 

The lira weakened on Thursday, staying under pressure as a damaging standoff between Turkey and the United States centred on the fate of a Christian pastor showed no signs of easing.

 

Ankara accused Washington of waging “economic war” and failing to respect its legal system over Andrew Brunson, whose trial in Turkey on terrorism charges – which he denies – has soured ties between the NATO allies.

 

As relations soured this month, Trump doubled tariffs on metal imports from Turkey, prompting Ankara to raise tariffs on U.S. car, alcohol and tobacco imports by the same amount.

 

https://www.reuters.com/article/uk-turkey-currency/lira-falls-as-turkey-says-u-s-waging-economic-war-idUSKCN1L80OT

 

 

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