Market Overview 2018.08.15

15-08-2018 09:05:38
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EUR/USD

EUR/USD continued to record losses on Wednesday and fell to its lowest level on June 28, 2017 (1.13186). The US dollar has risen to the highest level in the past 13 months against the major world currencies, as demand for instruments that are considered a safe haven rose as a result of the recent collapse of the Turkish lira, which prompted the s trengthening of the US currency. The euro is still under pressure from the situation in Turkey because of the concern that European banks are exposed to the negative consequences of the events in Turkey. Erdogan said on Tuesday that Ankara would boycott electronic products from the United States in response to Washington’s measures. On Wednesday, Turkey significantly raised customs tariffs on some American products, including passenger cars, alcohol and tobacco. On the afternoon, markets may focus on retail data in the US in July, as well as data on industrial production in the same period.

EUR/USD by SGT Markets Forex Broker and CFD | August 15, 2018 EUR/USD indicators by SGT Markets Forex Broker and CFD | August 15, 2018

GBP/USD

GBP/USD fell below 1.2700 this morning and touched the lowest level since mid-June 2017 (1.26887). The US dollar has risen to the highest level in the past 13 months against the major world currencies, as demand for instruments that are considered a safe haven rose as a result of the recent collapse of the Turkish lira, which prompted the strengthening of the US currency. The euro is still under pressure from the situation in Turkey because of the concern that European banks are exposed to the negative consequences of the events in Turkey. Erdogan said on Tuesday that Ankara would boycott electronic products from the United States in response to Washington’s measures. On Wednesday, Turkey significantly raised customs tariffs on some American products, including passenger cars, alcohol and tobacco. The British pound is still under pressure due to disappointing data on wage growth published yesterday, as well as the uncertainty with Brexit ahead of a new round of negotiations starting on Thursday (August 16th). Inflation data for July will be published this morning in the UK. On the afternoon, markets may focus on retail data in the US in July, as well as data on industrial production in the same period.

GBP/USD by SGT Markets Forex Broker and CFD | August 15, 2018 GBP/USD indicators by SGT Markets Forex Broker and CFD | August 15, 2018

USD/JPY

On Wednesday, USD/JPY recorded profit with strong dollar support, and touched the highest level in the session at 111.42. The US dollar has risen to the highest level in the past 13 months against the major world currencies, as demand for instruments that are considered a safe haven rose as a result of the recent collapse of the Turkish lira, which prompted the strengthening of the US currency. The euro is still under pressure from the situation in Turkey because of the concern that European banks are exposed to the negative consequences of the events in Turkey. Erdogan said on Tuesday that Ankara would boycott electronic products from the United States in response to Washington’s measures. On Wednesday, Turkey significantly raised customs tariffs on some American products, including passenger cars, alcohol and tobacco. In general terms, the dollar is in a better position than the yen due to the significant difference in the monetary policy of the two countries. While the Federal Reserve gradually raises the interest rate, the Bank of Japan has still not abandoned the crisis program of monetary stimulus. The ongoing trade war between China and the United States continues to encourage most investors to buy US dollars, which is another reason why the USD / JPY exchange rate is now above 111.00. On the afternoon, markets may focus on retail data in the US in July, as well as data on industrial production in the same period.

USD/JPY by SGT Markets Forex Broker and CFD | August 15, 2018 USD/JPY indicators by SGT Markets Forex Broker and CFD | August 15, 2018

GOLD

Gold has mildly recovered from earlier losses recorded on Tuesday during the Asian session and climbed to level 1193. Gold recently sank to the lowest level since January last year due to the unstoppable strengthening of the US dollar. The dollar touched the new price peak last time recorded in June 2017, as concern over the economic situation in Turkey is fueling stronger demand for instruments that are considered a safe haven. In addition, strengthening yields on US bond holdings reduces demand for non-yielding instruments such as gold. Gold and dollar are usually inverted proportions, and when one instrument goes up, the other goes down. The reason for this is the fact that the value of gold is calculated in dollars.

GOLD by SGT Markets Forex Broker and CFD | August 15, 2018 GOLD indicators by SGT Markets Forex Broker and CFD | August 15, 2018

OIL

Crude oil lost its value on Wednesday during an Asian session. One barrel currently costs $ 66.42. Oil declined as a result of a report on the growth of oil stocks, as well as the expectation that a possible slowdown in global economic growth would have a negative impact on demand for fuel. Oil reserves in the United States last week rose from 3.7 million barrels to a total of 410.8 million barrels, according to a report by the US Petroleum Institute (API) on Tuesday. Market sentiment is also not on stable feet due to pessimistic expectations of a global economic growth whose slowdown could cut demand for oil. The global trading volume peaked in January with almost 5.7% annually, but nearly halved to 3.

OIL by SGT Markets Forex Broker and CFD | August 15, 2018 OIL indicators by SGT Markets Forex Broker and CFD | August 15, 2018