Staying on course the USD DXY has been the right decision up until now. Where the registered high marked in the US session at 96.98 have been supported by strong retail numbers. However, the case maybe is the fact that the YEN have generated quite an attention with the USDJPY marking a 111.43 high and is currently trading at 110.63 levels. Risk aversion just one of the real reasons for market volatility as traders have been following the up/down swings in the market.
But US equities have found other reasons to drift lower where the DOW is down triple figures back to 25032.34, SP500 at 2809.00, & NASDAQ at 7753.88. Trade retaliations from Turkey doubling up in triple percentage on certain goods from the US which have added more towards sentiments rather than figures. This is because the US imports much lesser from Turkey and would not even dent GDP figures.
On the Broader Trade Perspective
What we are all seeing now is actually a true to life 'Economic War' so to speak without being tag as one; with countries who are in disagreement with the US trade policies that have been accustomed to & have been already set in previous trade agreements is showing more than what can be handled in a negotiating table.
Intellectual properties to National security concerns are the real issues among major US industry companies who have engage with other nations like China are being protected. A sense of fair play in trade negotiations which could well be in place other than from what other nations call it 'over protectionism' from President Trump's policy of America first.
This is in fact what is going on, and for how long these would take remains to be seen moving forward. The fundamental drivers of the market are in command as investors and market participants are reacting to every newswire that comes out in the media reports. Hence, market volatility takes place with sentiments changing as fast as the news are reported.
With this scenario, siding with the right side of the market is crucial. For now, we see no amount of real technical analysis can beat what is fundamentally driven in the markets. Until such time when certain market price behavior would change otherwise.
Understandably, the market is fundamentally driven but to protect what already has been gained on the USD, technical trailing orders are always in place. Especially when unexpected reports says otherwise.
ReplyDeleteBUSY...BUSY...BUSY BEE is good!
ReplyDeleteIn addition: Why US Equity investors and traders can push towards the boundaries of a decline, is because these market participants do have the financial ability with resolve to recover when its time to do so. This has happened time and again. And that is the very reason why President Trump has been 'using the banks money', as he claimed in one of his tweets. And this is how he sees it while others disagree. Everyone is entitled to their own opinions and market outlook.
ReplyDeleteOn our part, its our responsibility to be able to monetize and translate our trade analysis into the right trade position and have the best probable bottom line end results. For as long as we can adapt to market conditions we do have a greater probability to achieve this.
TIP of the DAY:
ReplyDeleteFrom time to time whenever there is a need for price adjustments are made as not to disrupt strategies correlated to the traded instruments. Especially when unexpected reports says otherwise.
Adapting to market conditions are important to know when such price adjustments are to be made. Avoid overaction on newswires that changes more often and can easily lead to market misdirection.
With that said, early US session have again turned upright to a positive triple digit price recovery after news of US CHINA going back on the table for another round of trade talks.
ReplyDeleteAs we have mentioned that US market participants have pushed prices to the floor yesterday slightly below the 25k mark and have regained it's footing with today's price action.
#DOW is Right Back on the Saddle! With a triple digit price recovery nearing the #25550 handle to clear through. Surely even if the US China trade talks would resume; this news still outweighs previous reports on Turkey, as China carries a bigger stick but not as big as what the US has in its economic arsenal.
ReplyDelete#Narratives have changed after pushing prices to its boundaries. #Bulls are Back With Vengance After Market Disruption! Besides it didn't take that long to gain back where prices came from.
Price Update: As of Aug 16, 2018
ReplyDeleteUSD Index
96.55
-0.160 -0.21%
S&P 500
2846.67
+28.44 +1.01%
Dow 30
25,565.57
+403.16(+1.60%)
Euro
1.139265
+0.001640 +0.14%
US Dollar
96.552
-0.160 -0.21%
Nasdaq
7,836.17
+62.05 +0.80%