Daily Market Analysis

Find out more about which trading instruments are moving, and see which economic indicators to look out for, to update your trading strategy accordingly.

FXPrimus’s Daily Market Analysis is provided by their in-house FX Market Specialist, Stavros Tousios.

EU-US Seal Agreement to Work Towards Zero-Tariffs, Risk Appetite Improves but Trade War Risk between US and China Sticks Around

Jean-Claude Junker said to Trump that EU and US “should focus on reducing tariffs, not on increasing”, in yesterday’s widely anticipated trade-talk meeting.

US President agreed and added that a “free-trade” deal will please the United States, but on the flip-side keeps tweeting threats against China.

The negotiations target to a “free and fair trade” in goods and services that reach nearly $1T per year.

EU reciprocated the shift in Trump’s trade approach with an increase in soybeans and liquefied natural gas imports, as the two products have hurt specific US sectors amid retaliatory tariffs taken by China.

Dollar slipped with Equities and Euro pumping higher following the surprise announcement and for once the Chinese Yuan moved marginally higher too, strengthening the commodities and commodity Aussie and Kiwi pairs.

Loonie also gained on larger EIA crude draw.

Investors will focus on Draghi’s statement today as clarity on the timing the ECB may lift rates could be given.

Today’s Important Indicators

Major Market Updates

• EUR/USD – Euro soars back above $1.17 against Dollar after Junker-Trump agreement towards a “free and fair trade”, pair gains nearly 50 pips by day’s close following a rejection at $1.1745 resistance.
• GBP/USD – Cable nears $1.32 Fibonacci expansion as Dollar shakiness allows counter currencies become stronger, Pound trails Euro but with weak reflection as Britain will have own trade-talks.
• USD/JPY – Dollar only a tad lower against Yen as risk appetite takes edge off of safe-haven, price flirts with golden 110.78 which may add further bearish bias given a break below the critical level.
• USOIL – Oil demand increases as EIA reports a huge Crude Oil build, price surges $1.15 higher per barrel, confirming bullish 18.07.2018 channel. Investors eye upside $70 level.
• XAU/USD – Gold sentiment shifts on soft Dollar while Chinese currency takes breather and lifts commodities prices higher, yellow metal back above $1230 per ounce.
• BTC/USD – Bitcoin naturally lower in yesterday’s session as investors closing positions to bank some profits following the recent bullish streak, pullback could be short-lived.
• US Equities – Tesla climbed 3.80% higher, Amazon improves by 1.88%.
• US Indexes – DJ and S&P 500 both rose not only on good earnings reports but also on positive trade-war developments between EU and US. Indexes up by 0.68% and 0.91%, respectively.
• European Indexes – UK 100 unmoved today, DE 30 open a massive 1.48% higher on EU-US trade deal.
• Asian Indexes – ASX 200 declined by 0.06%, Nikkei fell by 0.12% and Hang Seng trades 0.80% lower.