Search LOGIN

Gold gains as dollar, yields slip; focus on U.S. inflation data

 

“Being Challenged In Life Is Inevitable, Being Defeated Is Optional.” — Roger Crawford

 

 

HEADLINES

 

  • Dollar extends gains against yen as big Fed hike bets ramp up
  • Gold gains as dollar, yields slip; focus on U.S. inflation data
  • Oil edges up on strong economic data but trade choppy
  • S&P 500 gives up earlier gain and is flat as Nvidia warning hits tech stocks
  • Stocks choppy after U.S. jobs report sell-off
  • EUR/USD: At levels which are enticing neither for buyers nor sellers – Scotiabank
  • USDJPY Near Term: Downside favored

 

 

Dollar extends gains against yen as big Fed hike bets ramp up

 

The dollar firmed slightly against the yen on Monday, building on the strong gains made at the end of last week after surprisingly strong U.S. jobs data lifted expectations for more aggressive Federal Reserve policy tightening.

The greenback was last 0.1% higher at 135.155 yen, and earlier rose to 135.585 yen, its highest since July 28, after surging 1.57% in the previous session for its biggest single-day gain since June 17.

The dollar index, which measures the currency against six counterparts, stood at 106.54, not far off from a Friday peak of 106.93, also the strongest since July 28.

 

 

COMMODITIES

 

Gold gains as dollar, yields slip; focus on U.S. inflation data

 

Gold prices rose on Monday following a pullback in the dollar and U.S. Treasury yields, while investor focus shifted to U.S. inflation data for clues on the Federal Reserve’s rate hike plan.

Spot gold rose 0.8% to $1,787.69 per ounce by 12:33 p.m. ET, while U.S. gold futures rose 0.7% to $1,804.20.

The dollar index fell 0.3%, making gold more appealing to other currency holders. U.S. Treasury yields also slipped.

 

 

ENERGY

 

Oil edges up on strong economic data but trade choppy

 

Oil prices rose 1.5% on Monday, hovering near their lowest levels in months in volatile trading as positive economic data from China and the United States fed hopes for demand despite nagging fears of a recession.

Brent crude futures were up $1.44, or 1.5%, at $96.35 a barrel by 12:35 p.m. ET (1635 GMT). U.S. West Texas Intermediate crude was at $96.33 a barrel, up $1.38, or 1.5%.

Last week, fears that a recession could dent energy demand pushed front-month Brent prices down 13.7% to their lowest since February. It was Brent's biggest weekly drop since April 2020, and WTI lost 9.7%.

Both contracts recouped some losses on Friday after jobs growth in the United States, the world's top oil consumer, unexpectedly accelerated in July.

 

 

STOCKS

 

S&P 500 gives up earlier gain and is flat as Nvidia warning hits tech stocks

 

Stocks struggled to hold their ground on Monday, following the S&P 500′s third straight weekly gain, as demand concerns for the semiconductor industry weighed on tech stocks.

The S&P 500 and Nasdaq Composite were both down about 0.1%. The Dow Jones Industrial Average gained 75 points, or 0.1%. Stocks rose in morning trading but lost ground as the day progressed.

Nvidia announcing weaker-than-expected revenue for the second quarter, putting pressure on semiconductor stocks. Shares of the chip giant fell more than 8%, and rival stocks like AMD and Broadcom were also under pressure.

 

Stocks choppy after U.S. jobs report sell-off

 

World stock markets were mostly flat on Monday, unable to recover much from a sell-off last week triggered by a strong U.S. jobs report that bolstered the case for sharp interest rate increases. The dollar weakened and government bond yields fell.

On Wall Street, the Dow Jones Industrial Average (.DJI) rose 0.08%, to 32,831.23; the S&P 500 (.SPX) lost 0.05%, to 4,143.27; and the Nasdaq Composite (.IXIC) added just 0.04%, to 12,662.28. read more

The broad Euro STOXX 600 (.STOXX) was up about 0.75% on Monday, led by cyclical and growth stocks, helping it recover losses from Friday. The MSCI world equity index (.MIWD00000PUS), which tracks shares in 47 countries, added just 0.22%.

Higher rates remained squarely in focus for investors.

 

 

ANALYSIS

 

EUR/USD: At levels which are enticing neither for buyers nor sellers – Scotiabank 

 

“A look at the short-term EUR chart shows spot moving sideways in a broad 1.0125/1.0275 range over the past three weeks, leaving spot at levels which are enticing neither for buyers nor sellers in the short run.” 

“Short-term gains will need to push through and hold above 1.0235/45 to have any chance of extending.”

“Support is 1.0155/65 intraday.”

 

 

CHART

 

USDJPY Near Term: Downside favored

 

Technical View: Short position below 135.6. Target 134.3. Conversely, break above 135.6, to open 136.

Comments: The pair remains under pressure. Further weakness favored.

 

 

Source: Trading Central 

 

 

CALENDAR

 

*Times in GMT

 

 

Source: FX Street Economic Calendar

 

 

SOURCES

https://www.cnbc.com/2022/08/08/forex-markets-dollar-japanese-yen-fed-policy-us-jobs.html
https://www.cnbc.com/2022/08/08/precious-metals-gold-fed-rates-us-data.html
https://www.reuters.com/markets/europe/oil-slides-amid-recession-fears-slow-recovery-china-imports-2022-08-08/
https://www.cnbc.com/2022/08/07/stock-market-news-futures-open-to-close.html
https://www.reuters.com/markets/europe/global-markets-wrapup-1-pix-2022-08-08/
https://www.fxstreet.com/news/eur-usd-at-levels-which-are-enticing-neither-for-buyers-nor-sellers-scotiabank-202208081307
 

 


 

UNLIMITED ACCESS!

The best way to keep track of your accounts. Get notifications
and access your dashboard any time!

Open a live or demo account, make secure deposits or get latest
market updates for free!