News

US-Sino Trade Call Bolsters Risk Sentiment; Dollar Eases

Equities

Major US stock index futures added to their prior gains following trade talks between China and the United States. China's Vice Premier Liu He had a call over the phase 1 trade deal with the US Trade Representative Robert Lighthizer, and Treasury Secretary Steven Mnuchin. Both sides declared that they saw progress in the implementation of the deal and ensured to provide the perfect medium to continue forward with the implementation. The Dow Jones Industrial Average futures rose to 28478, the highest since the 24th of February, the S&P500 futures rallied to another record high of 3448, and Nasdaq futures tackled yesterday's high, trading at 11688.

Dollar

The dollar index, which measures the greenback against a basket of major currencies, eased slightly to 93.06 as the US-China trade call lifted risk sentiment. On the other hand, market participants are looking forward to Powell's speech at the Jackson Hole Symposium later this week. The EURUSD inched higher to $1.1834, the GBPUSD rallied to $1.3115, and the risk-sensitive AUDUSD advanced to $0.7182.

Metals

Precious metal prices continued to hover in a tight range awaiting fresh fundamental drivers ahead of the Central Bankers event this week. The price of a gold ounce is holding steady near $1930, the price of a silver ounce eased to $26.50, and palladium futures were almost unchanged near $2180.

Oil

Oil prices continued to find support from the US tropical storm and hurricane, which affected production in the Gulf of Mexico. Oil producers in the region, shut down more than 50% of their activity, to avoid any losses due to weather. On the other hand, market participants are looking forward to the inventories report from the American Petroleum Institute and the US Energy Information Administration. The West Texas Intermediate October delivery hovered around $42.50, and Brent Blend October delivery rose to $45.31.

Major Economic Events

GMT Country Event Expectation Previous

14:00

US

CB Consumer Confidence (Aug)

93.0

92.6

14:00

US

 New Home Sales (Jul)

786

776

20:30

US

 API Weekly Crude Oil Stock

-

-4.264

22:45

NZ

Trade Balance (MoM) (Jul)

285

426

Disclaimer

The prices and news mentioned in this outlook are absolutely no guarantee of future market performance and do not represent the view of ICM.COM. Financial markets can move in either direction causing profits to be made or complete losses to be incurred by the trader. Each trader must decide for themselves what their risk appetite is and ensure that correct risk management procedures are in place before placing any trades.

CFDs and Spot FX are complex instruments and come with a high risk of losing money rapidly due to leverage. 71.31% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs and Spot FX work, and whether you can afford to take the high risk of losing your money. Read more
Read more
Mail Call Chat