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OPEC chatter limits big oil price drop

“Remember that stocks are never too high for you to begin buying or too low to begin selling.” - Jesse Livermore

 

 

HEADLINES

 

 

  • Sterling slips as global risk appetite falters; speculators turn bullish
  • USD/JPY extends slide, closes in on 109.00 on falling US T-bond yields
  • Oil pares loses as OPEC+ sees no need for more supply hikes
  • Gold posts back-to-back gains to highest settlement in more than week
  • S&P 500 Cuts Losses to Trade Near Record Highs
  • Bitcoin Holds Support; Approaching $50K Resistance
  • Long-term US yields pick-up provides another catalyst for a stronger USD – MUFG

 

 

FOREX

 

 

Sterling slips as global risk appetite falters; speculators turn bullish

 

The British pound slipped against the dollar and was little changed against the euro on Monday, with risk appetite in global markets weak after economic data from the United States and China stirred concern about their recovery from COVID-19.

 

USD/JPY extends slide, closes in on 109.00 on falling US T-bond yields

 

The USD/JPY pair stays under bearish pressure in the second half of the day on MondayOn Friday, the sharp decline witnessed in the US Treasury bond yields weighed heavily on USD/JPY. Although the benchmark 10-year US T-bond yield moved sideways during the European trading hours, it turned south in the American session and caused USD/JPY to stretch lower. Currently, the 10-year US T-bond yield is down 3.5% at 1.237%.

 

 

COMMODITIES

 

 

Oil pares loses as OPEC+ sees no need for more supply hikes

 

Oil prices slipped more than 1% on Monday, paring steep losses on weak Chinese economic data after sources told Reuters that OPEC and its allies believe the markets do not need more oil than they plan to release in the coming months. The market had dropped more than 3% earlier in the session after data showed Chinese factory output and retail sales growth slowed sharply in July, missing expectations as flooding and fresh outbreaks of COVID-19 disrupted business activity.

 

Gold posts back-to-back gains to highest settlement in more than week

 

Gold futures climbed Monday for a second straight session, marking their highest settlement in more than a week, as disappointing U.S. economic data provided support for the haven metal. Prices for gold moved higher after data from the New York state region, the Empire State factory index, showed a drop to 18.3 in August from 43 in the prior month.

The yellow metal saw support from a “risk off scenario,” thanks to its “safe-haven role”… “The Afghanistan situation is pulling down stocks, while investors are moving some liquidity to gold.”

 

 

STOCKS

 

 

S&P 500 Cuts Losses to Trade Near Record Highs

 

The S&P 500 cut losses to trade near all-time highs on Monday, shrugging off offset weakness in economically-sensitive cyclical stocks despite growing concerns about slowing global growth. Energy fell more than 1%, dragging the broader the market lower, as oil prices slumped on demand concerns after softer economic data from China triggered concerns about the global recovery.

 

 

CRYPTO

 

 

Bitcoin Holds Support; Approaching $50K Resistance

 

Bitcoin (BTC) is holding support above $42,000 and could face resistance near $50,000 as short-term momentum behind the short-squeeze rally fades. The cryptocurrency was trading around $47,400 at press time and is up 3% over the past 24 hours.

The short-term uptrend remains intact despite several overbought pullbacks that were resolved to the upside. Bitcoin remains in breakout mode after rallying past $42,000, which marked the completion of a two-month consolidation phase. 

 

 

ANALYSIS

 

 

Long-term US yields pick-up provides another catalyst for a stronger USD – MUFG

 

“Our correlation analysis continues to show that USD/JPY has had the strongest correlation to long-term US rates at +0.66. At the same time, our short-term valuation model estimate based on yield spreads is signalling that USD/JPY has not fully tracked the recent move higher in US rates.”

“We continue to see risks as tilted to the upside for the USD in the week ahead. Any hawkish policy signal in the FOMC minutes could reinforce the USD’s upward momentum especially if key resistance levels are taken out. USD/JPY is poised to rise back towards and test July’s high at 111.66.”

 

 

CHART

 

 

Silver – 4 hour Candlesticks

Source: GKFX Prime Metatrader 4

Silver is testing the underside of a broken down-sloping channel. The trend remains down, however the drop last week might be an ‘exhaustion bottom’ and possibly mean a re-test of the 25.0 handle. - Prepared by Trading Writers*

 

 

CALENDAR

 

 

*Times in GMT

Source: FX Street Economic Calendar

 

SOURCE

 

https://www.fxstreet.com/economic-calendar
https://www.fxstreet.com/news/long-term-us-yields-pick-up-provides-another-catalyst-for-a-stronger-usd-mufg-202108160758
https://www.fxstreet.com/news/usd-jpy-extends-slide-closes-in-on-10900-on-falling-us-t-bond-yields-202108161512
https://www.investing.com/news/stock-market-news/sp-500-cuts-losses-to-trade-near-record-highs-2591130
https://www.investing.com/news/commodities-news/oil-falls-as-delta-surge-clouds-fuel-demand-outlook-2590261
https://www.coindesk.com/bitcoin-holds-support-approaching-50k-resistance

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