Market Risk Appetite Wanes

10 April, 2019

The International Monetary Fund (IMF) cut its global growth outlook once again. For the year 2019, growth is forecast to rise by 3.3% compared to 3.5% previously.

The IMF cited several downside risks including Brexit, US-China trade talks and the US, Mexico and Canada trade agreement. Euro area growth was slashed to 1.3% while US growth was cut to 2.3% for the year.

Join our responsible trading community - Open your Orbex account now! 

Euro Waits for ECB Meeting

The euro was trading flat after briefly rising to a nine-day high on Tuesday. President Trump threatened the EU with an $11 billion tariff due to subsidies given to the European airline manufacturer, Airbus. The euro was initially unmoved on the reports but later settled the day flat.

Will the EURUSD Fall?

The currency pair extended declines after it rallied to intraday highs of 1.1276. The current declines will see price retesting the previous resistance level at 1.1245 to form support. If this holds, we expect a rebound which could eventually break 1.1276 to test the 1.1300 region. But a failure at the expected support could push EURUSD closer to 1.1245 and possibly extend further declines.

Crude Oil Slips on Mixed Sentiment

Oil prices maintained the bullish trend but eased after touching new highs of $64.68. Price retreated after conflicting signals. Russia, the largest non-OPEC supplier said on Tuesday that it prefers to increase supply when the current production cuts end in June. This was in contrast to the production cuts currently underway alongside tensions in Libya which have caused oil prices to maintain a steady uptrend.

Is WTI Crude Oil Due for a Correction?

WTI Crude oil has been rallying for the past five consecutive weeks pushing oil prices to a five-month high. The uptrend is still intact, and we expect this current dip to be a mere correction to the uptrend. The main target for crude oil prices is near the $65.00 – $66.00 region. The current dip is likely to see price testing $62.80 where support could be formed.

Gold Eyes ECB Meeting and Fed Minutes

The precious metal managed to post gains for the second daily session as price settled at $1303.92 by Tuesday’s close. The market sentiment helped to push the price of the precious metal higher. With the ECB due to take center stage today, followed by the Fed meeting minutes, gold could remain in a holding pattern in the near term.

Is There More Room for XAUUSD to Rally?

Price action in XAUUSD currently shows that price has settled within the 1307 – 1301 level of resistance as noted few days ago. We expect price to remain flat within this level. However, the risks are balanced as there is scope for gold to breakout higher which could see price attempting to test 1320. To the downside, the support at 1287 – 1284 will be the level to watch. [xauusd]

Markets cautious on trade tensions29 May, 2019  

The markets were trading cautiously albeit amid a slight risk-on sentiment prevailing. US stocks closed slightly higher while safe haven assets shed...

Risk off sentiment sends gold higher24 May, 2019  

Investors continued to shun risk assets on Thursday amid a mix of global themes. The stalemate in the US and China talks alongside rumors that the US...

Market Reaction As Higher Tariffs Kick In13 May, 2019  

The markets were trading mixed by Friday's close after the tariffs on goods imports from China were hiked from 10% to 25%. This came as the US and China...

USD Strengthens On ADP Payrolls2 May, 2019  

The latest monthly private payrolls data from ADP/Moody's Analytics showed that employers added 275k jobs in April. This beat estimates of a 181k increase...

BoC Holds Rates Steady25 Apr, 2019  

The Bank of Canada's monetary policy meeting yesterday saw the interest rates unchanged at 1.75%. However, the central bank cut the GDP forecasts...

Markets Open To A Quiet Trading Day22 Apr, 2019  

Economic data is sparse with only the release of the US new home sales report later in the day. The quiet start to the week comes ahead of some key...

Dollar Muted As Equities Rally Ease Off16 Apr, 2019  

The US dollar closed Monday's session unchanged as earnings reports from Goldman Sachs and Citi Group missed expectations, blaming the US economy....

USD retreats as factory orders weaken9 Apr, 2019  

The monthly factory orders report showed a 0.5% decline on the month matching estimates. The declines in February marks a fourth consecutive...

Unemployment Steady, USD Firms8 Apr, 2019  

The payrolls report for March saw the US economy adding 196,000 jobs during the month. This beat expectations of a 175,000 increase for the period...