Daily Market Analysis

Market Focus

European stocks climbed as market speculated the area could be relatively resilient to the tech-led downdraft in the U.S. sterling sank on concern the U.K. is inching closer to a no deal Brexit.

The Europe Stoxx 600 rose Monday with broad gains led by automakers. Oil extended its retreat below $40 a barrel as a price cut by Saudi Arabia signaled fuel consumption is wavering in key markets. Futures on the S&P 500 index turned higher. The dollar gained while Treasury yields were little changed.

what we more focus on investors returning Tuesday from the U.S. Labor Day holiday will need to take stock of a rally that’s fizzling as doubts grow over positioning and valuations that look extreme. While futures on the broader U.S. stock index climbed Monday, those on Nasdaq were down 0.4% in the aftermath of the steepest weekly decline in global equities since June.

Market Wrap

Main Pairs Movement

During all day, very thin liquidity due to the U.S. Labor Day holiday may have exacerbated the move. The greenback retained its strength, advancing mainly from European rival.

Sterling leads G-10 losses as Brexit risks take center stage, fueling a bearish move on that currency that began last week. Sterling fell after U.K. Prime Minister Boris Johnson ratcheted up the chances of trade of negotiations failing with the European Union, options and charts suggested earlier this month that the currency could face pressure. It fell as much as 0.7% to 1.3187, down a fourth day as it heads for its longest losing strike since June.

The euro tamp down by strong greenback that decline 0.1% at 1.1814. Market is pricing for ahead of ECB meeting on Thursday.

COVID-19 Data (EOD):

Technical Analysis:

GBPUSD(H4)

Sterling dipped as the most in G-10 pairs as bad news for ongoing Brexit talks. As consecutive perspective, sterling decline to yellow uptrend line for fourth times since July and loss almost 2% from earlier this month. We still consider the yellow line could be a remarkable support. For RSI aspect, it dropped to 34.88 to close the over sought level that suggesting intractable movement so far. At the meantime, we are focus on upward 60-MA would not sheer off it trend to upwind.

Resistance: 1.3219, 1.3255

Support: 1.3129, 1.3074

XAUUSD(H4)

Gold slightly changed intraday as thin liquidity market in holiday. Gold also quagmire in choppy market as a range between first support and resistance. For RSI perspective, index upward to neutral zone and it set around 45. 60-MA remain slightly down as well as short term MA.

Resistance: 1948.69, 1968.19

Support: 1918.33, 1905.62

EURUSD(H4)

German industrial production shrank 10% YoY in July, much worse than anticipated a lot while equities market substantially went higher. Euro dollar neutral-to-bearish in thin trading as U.S. holiday. Germany will publish its July trade balance, while the EU will release the final reading of Q2 GDP. Meanwhile, euro dollar trading close to yellow uptrend line which a critical support since July. For MA perspective, 60-MA remain upward but 15-MA is exacerbating against long term. A critical support at would be accordance with the uptrend line with the market.

Resistance: 1.1844, 1.1866

Support: 1.18, 1.1768

Economic Data