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Nasdaq falls for third straight day as chip stocks weigh on market

 

“It is better to fail in originality than to succeed in imitation.” — Herman Melville

 

 

HEADLINES

 

 

  • Dollar turns slightly defensive, inflation data next key test
  • Gold ticks up on softer dollar, spotlight on U.S. inflation data
  • Oil retreats on chance of Iran supply boost
  • Nasdaq falls for third straight day as chip stocks weigh on market
  • U.S. Treasury yields tick up as investors look ahead to key inflation data
  • GBP/USD to edge back towards daily low at 1.2065 – Scotiabank
  • GBPJPY Near Term: Upside favored

 

 

Dollar turns slightly defensive, inflation data next key test

 

The dollar edged lower on Tuesday in thin summer trading with market participants in wait-and-see mode ahead of key inflation figures that could shed more light on how aggressive the Federal Reserve might be in its expected interest rate hike in September.

Traders are widely expecting Wednesday’s U.S. Consumer Price Index report to show that decades-high inflationary pressures eased in July following back-to-back 75-basis point hikes by the Fed in June and July aimed at combating soaring prices.

Money-market futures show traders see about a two-thirds chance of a 75 bps hike next month.

 

 

COMMODITIES

 

 

Gold ticks up on softer dollar, spotlight on U.S. inflation data

 

Gold prices gained on Tuesday supported by a softer dollar, while market participants awaited U.S. inflation data for cues on the Federal Reserve’s policy tightening path.

Spot gold was 0.4% higher at $1,794.76 per ounce, while U.S. gold futures rose 0.4% to $1,811.40.

A weaker greenback makes gold less expensive for overseas buyers. The dollar index was down 0.3%.

Gold is currently benefiting from a softer dollar and the Russia-Ukraine situation, while the focus is on what happens with CPI on Wednesday, said Daniel Pavilonis, senior market strategist at RJO Futures.

 

 

ENERGY

 

 

Oil retreats on chance of Iran supply boost

 

Oil prices reversed early losses and traded higher on Tuesday despite the latest progress in last-ditch talks to revive the 2015 Iran nuclear accord, which would clear the way to boost its crude exports in a tight market.

Brent crude futures added 1.15% to trade at $97.76 per barrel.

U.S. West Texas Intermediate crude futures stood at $91.66, for a gain of 1%, after climbing 2% in the previous session.

 

 

STOCKS

 

 

Nasdaq falls for third straight day as chip stocks weigh on market

 

Stocks fell on Tuesday as investors navigated a batch of disappointing company reports ahead of a key inflation reading.

The S&P 500 fell 0.6%, while the Nasdaq Composite dropped 1.4%. The Dow Jones Industrial Average was down 91 points, or 0.3%.

The declines came after memory chipmaker Micron warned that revenue may fall short of its prior guidance because of “macroeconomic factors and supply chain constraints.” The stock fell more than 5%.

It’s been a rough week for chipmakers. On Monday, weaker-than-expected revenue guidance from Nvidia weighed on the group, and those stocks extended their losses on Tuesday.

 

 

U.S. Treasury yields tick up as investors look ahead to key inflation data

 

U.S. Treasury yields moved slightly higher on Tuesday, as investors await some closely watched inflation figures due later in the week.

The yield on the benchmark 10-year Treasury note rose more than 3 basis points to 2.799% while the yield on the 30-year Treasury bond rose 1 basis point, ticking just above the 3% level. Yields move inversely to prices, and a basis point is equal to 0.01%.

The 2-year Treasury yield was up about 6 basis points at 3.28%, continuing to trade far above the longer-term 10-year rate. That relationship is broadly watched on Wall Street as a potential recession indicator.

 

 

ANALYSIS

 

 

GBP/USD to edge back towards daily low at 1.2065 – Scotiabank 

 

“With markets generally consolidating, gains through 1.2135/40 will be a stretch for the GBP and we rather look for prices to edge back towards the intraday low for spot around 1.2065.” 

“The broader downtrend in place since the start of the year remains intact which should serve to reinforce resistance in the 1.2175/00 zone.”

 

 

CHART

 

 

GBPJPY Near Term: Upside favored

 

Technical View: Long position above 162.76. Target 164.75. Conversely, break below 162.76, to open 162.07.

Comments: The pair is expected to resume advance after correction.

 

 

 

 

Source: Trading Central 

 

 

CALENDAR

 

 

*Times in GMT

 

 

 

 

Source: FX Street Economic Calendar


 

Footnotes
https://www.cnbc.com/2022/08/09/forex-markets-currencies-dollar-cpi-inflation.html
https://www.cnbc.com/2022/08/09/precious-metals-gold-us-inflation-interest-rates.html
https://www.cnbc.com/2022/08/09/oil-markets-crude-iran-.html
https://www.cnbc.com/2022/08/08/stock-market-futures-open-to-close-news.html
https://www.cnbc.com/2022/08/09/us-bonds-treasury-yields-in-focus-as-investors-await-inflation-data.html
https://www.fxstreet.com/news/gbp-usd-to-edge-back-towards-daily-low-at-12065-scotiabank-202208091420
 

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