Date: AGUST04, 2018
Daily World Economic and Financial News
(CNBC): AGUST04, 2018 ---- The U.S. dollar came under some pressure after data showed U.S. job growth slowed in July on Friday, while slipping against the yuan after the Chinese central bank acted to stabilize the currency by stemming speculation against it. The dollar eased against a basket of currencies after the U.S. government reported a braking of domestic job growth, as employment in the transportation and utilities sectors fell.
(CNBC): AGUST04, 2018 ---- The Chinese currency rebounded from a 15-month low hit earlier in the session, after China's central bank said it would set a forward reserve requirement ratio of 20 percent - up from an earlier zero - from Monday for financial institutions settling foreign exchange forward yuan positions.
China on Friday announced retaliatory tariffs on $60 billion worth of U.S. goods, and warned of further measures, signaling that it will not back down in a protracted trade war with Washington.
(CNBC): AGUST04, 2018 ----Crude futures pulled back on Friday, giving up gains from the previous session as trade concerns weighed on the market and fueled concerns about demand.
(CNBC): AGUST04, 2018 ---- U.S. West Texas Intermediate (WTI) crude futures finished Friday's session down 47 cents at $68.49 per barrel. Brent crude futures fell 31 cents to $73.14 per barrel at 2:25 p.m. ET.
(CNBC): AGUST04, 2018 ---- Sterling fell back below $1.30 on Friday after Bank of England Governor Mark Carney said there was an “uncomfortably high” risk of Britain leaving the European Union without a deal.
(BLOOMBERG): AGUST04, 2018 ---- China also signaled on Friday it has no intention of retreating from a trade war. The government announced it has prepared a list of $60 billion worth of U.S. goods to hit with duties should the U.S. follow through on a plan to impose duties on an additional $200 billion of Chinese goods, as early as next month. The Chinese duties ranging from 5 percent to 25 percent will be levied on 5,207 kinds of American imports, the Ministry of Finance said in a statement on its website.
(BLOOMBERG): AGUST04, 2018 ---- The U.S. has been unable to persuade China to cut Iranian oil imports, according to two officials familiar with the negotiations, dealing a blow to President Donald Trump’s efforts to isolate the Islamic Republic after his withdrawal from the 2015 nuclear accord.
(CNBC): AGUST04, 2018 ---- Gold bounced on Friday from the lowest in nearly 17 months after weak U.S. jobs data pushed the dollar lower and a Chinese central bank move lifted its currency. Spot gold was up 0.49 percent at $1,213.49 an ounce, erasing losses after earlier dropping to its lowest since March 15 last year at $1,204. U.S. gold futures for December delivery settled up $3.10 to $1,223.20.
EUR/USD PAIR ANALYSIS
The EUR/USD pair is little changed this Friday, but below the 1.1600 level. Late Thursday, it broke below a daily ascendant trend line coming from the yearly low at 1.1507, completing a pullback to it on early Friday's turmoil, but still below the level, and close to its yearly low. In the weekly chart, the negative bias is still clear, as the 20 SMA continue gaining downward traction far above the current level, and, despite the Momentum indicator remains directionless, the RSI also turned south, currently at 37. In the daily chart, and after almost three weeks hovering around it, the pair finally accelerated lower below its 20 DMA, while the 100 DMA maintains a strong bearish slope, now at around 1.1820. Technical indicators in this last chart are flat in negative levels, after a failed attempt earlier this week to re-enter positive ground.
Bears are on the driver' seat, despite cautions. Supports from here come at 1.1550 and the 1.1500 region, while below this last, 1.1440/60 is the next probable bullish target. The market will need a huge catalyst to break below this last price zone, but if it does, speculative interest may attempt to push it some 200 lower. The 1.1620 region is the immediate resistance, followed by a stronger one around 1.1720, the 23.6% retracement of the latest daily slump. Selling interest has been quite strong on attempts to break above it, and this situation will likely persist.
International & Financial Terms
1. Back and Filling: Numerous small rises and falls in a market, but without any overall major change in price level.
2. Last Notice Day: Finlay for the issuing of notices of intent to deliver against the future contract.
3. Disinflation: Slowing down of the rate at which prices rise.
4. Loan Stock: Long term interest bearing stock issued by a company.
5. Promissory Note: Written promise to pay use as an instrument of commodity futures trading.
Compiler: A Bank Dealing Room Section
Management of International Deputy The Expert In Charge Of Dealing Room