Small oil gains over Hurricane Eda

“The secret of change is to focus all your energy not on fighting the old but on building the new.” — Socrates

 

 

HEADLINES

 

 

• Dollar holds near two-week lows in Fed's wake
• Trudeau crashes in pre-election polls. New government increasingly likely
• Oil Edges Up as U.S. Gulf Producers Assess Damage After Ida
• Gold futures end lower, but hold above the key $1,800 mark
• China Game Stocks in U.S. Fall on Beijing’s Latest Crackdown
• PayPal is exploring a stock-trading platform for U.S. customers

 

 

FOREX

 

 

Dollar holds near two-week lows in Fed's wake

 

The dollar stabilized after falling to two-week lows on Monday as the greenback attempted to recover from Friday’s drop on comments from U.S. Federal Reserve Chair Jerome Powell that were interpreted as dovish. The dollar had one of its biggest daily percentage declines of the month on Friday after Powell said tapering could begin this year, but the central bank was in no hurry to raise interest rates.

 

Trudeau crashes in pre-election polls. New government increasingly likely

 

Canadian Prime Minister Justin Trudeau called an election two-years early hoping to ride Canada's early vaccination success along with a solid overall handing of the pandemic and NAFTA to a majority government. That decision looks to have backfired in a big way.

What does it mean for CAD? Politics are stable in Canada but there was some fear of wholesale tax changes under a Trudeau majority. With a minority government -- either Liberal or Conservative -- the status quo is likely to remain. However, decreases in government spending are more likely under the Conservatives and that could hit economic growth. However any drag there could be offset by a better investment climate, particularly in the struggling oil and gas industry.

 

 

COMMODITIES

 

 

Oil Edges Up as U.S. Gulf Producers Assess Damage After Ida

 

Oil closed modestly higher Monday in New York as offshore explorers assess damage from Hurricane Ida and investors shift focus to an OPEC+ meeting that could see more supply added to the market. U.S. oil futures settled above $69 a barrel for the first time in over two weeks after falling as much as 1.6% earlier. Gulf of Mexico producers had shut in about 1.7 million barrels a day of crude output ahead of the storm but most of these assets are expected to resume service steadily. In contrast, refineries in Louisiana may be slower to bring back operations.

 

Gold futures end lower, but hold above the key $1,800 mark

 

Gold futures ended lower on Monday, easing back after posting a gain last week, but prices remained above the key $1,800 mark. At the Jackson Hole central-bankers symposium on Friday, Federal Reserve Chairman Jerome Powell's inaction on tapering means gold has retracted all of August's previous 7% plunge.

 

 

STOCKS

 

 

China Game Stocks in U.S. Fall on Beijing’s Latest Crackdown

 

Chinese gaming stocks listed in the U.S. are under pressure once again after regulators in Beijing cut back the amount of time children can play online each week to just three hours.

American depositary receipts of gaming giant NetEase Inc. plunged as much as 8.8% Monday, while Tencent Holdings Ltd. -- which gets about a third of its revenue from video games -- dropped 1.4%. Other gaming-related stocks were also lower with Bilibili Inc. losing 1.2% and Kingsoft Cloud Holdings Ltd. sliding about 1%. The latest rules will only allow gaming platforms to offer services to minors from 8 p.m. to 9 p.m. on Fridays, weekends and public holidays, according to state news agency Xinhua

 

PayPal is exploring a stock-trading platform for U.S. customers

 

PayPal is exploring a possible stock-trading platform. After rolling out the ability to trade cryptocurrencies last year, the payments giant has been exploring ways to let users trade individual stocks, according to two sources familiar with the plans.

The San Jose, California-based company recently hired brokerage industry veteran Rich Hagen as part of the move, according to one of the sources. After leaving Ally Invest, Hagen is now the CEO of a previously unreported division of PayPal called Invest at PayPal, according to his LinkedIn page. Hagen was the co-founder of online brokerage TradeKing, which was bought by Ally Invest.

 

 

CHART

 

 

Australian dollar / Japanese yen – Daily Candlesticks

Source: GKFX Prime Metatrader 4

Having bounced off the 61.8% retracement of its rally since October 2020 as well its former peak from August 2020, AUD/JPY is now challenging downtrend line and RSI resistance. - Prepared by Trading Writers*

 

 

CALENDAR

 

 

*Times in GMT

Source: FX Street Economic Calendar

 

SOURCE

 

https://www.fxstreet.com/economic-calendar
https://www.forexlive.com/news/!/trudeau-crashes-in-pre-election-polls-new-government-increasingly-likely-20210830
https://www.cnbc.com/2021/08/30/paypal-is-looking-to-launch-a-stock-trading-platform-for-its-customers.html
https://finance.yahoo.com/news/china-game-stocks-u-fall-135024956.html
https://finance.yahoo.com/news/u-gasoline-prices-jump-hurricane-221058235.html
https://www.reuters.com/article/global-forex/forex-dollar-holds-near-two-week-lows-in-feds-wake-idUSL1N2Q11SW
https://www.marketwatch.com/story/gold-futures-end-lower-but-hold-above-the-key-1800-mark-2021-08-30