Trading Market Commentary August 28, 2017



The Symposium in Jackson Hole was unable to spark in the US Dollar, as many of the  Greenback bulls had been expecting since the long-term trend in the US currency went on Monday. The Euro Dollar pair (EURUSD) hit a fresh high close to the 1.20 price level throughout trading on Monday's, and also the important resistance price which will be quite likely to be tested in the upcoming days.

Currency trading markets were all the range prone on Monday, as securities traded in a thin price range through the entire trading session. The key US Indexes ended up marginally higher, whereas their Eurozone competitors had been sent lower by the robustness of the Euro Dollar once again. US equities continue in a precarious position ahead of the start of trading in September since the overvaluation is mixed with very fragile market internals. 

Markets may be in for an interesting couple of weeks, especially with US Non-Farms payroll numbers to be released on Friday. However, we are seeing a several markets highlighting the week of September the 11th as rolling weeks. Let's wait and see where the month end of August numbers come into play on Thursday this week.

US  Market

US equities ended up mixed with traders and investors thinking of getting the effect of Hurricane Harvey, along with the ongoing decline in the US Dollar after Friday's uneventful messages from European Central Bank super Mario (President Draghi) and Federal Reserve Chair Yellen in Jackson Hole, Wyoming. Energy equities ended up lower as crude oil prices dropped, even though an increase in petrol prices and as refineries in Houston are shot-down. US Treasuries ended up almost unchanged, and yellow metal has been very strong.

The main Indexes finished the trading on Monday mixed. Whereas the DJIA (DowJones Industrial Average) decreased by 8 pts (less than a 0.01%) to 21,806, the S&P500 climbed 1.19 pts (0.1%) to 2,444.24, and the NASDAQ Composite has risen 17.37 pts (0.3%) to 6,383.02.

European Markets

Europe's markets really couldn't get its act collectively on Monday as traders watched the equities turned down while the Euro Dollar gained. Volume was much lighter than normal as financial markets in the U.K. were closed for a national holiday, even though BREXIT talks started again and the British Pound put on some ground on the US Dollar. Even though petro prices rallied plus 3%, they couldn't arrest the crude oil’s downfall.

Virtually all key averages finished lower as the French CAC40 and the German DAX30 Index, decreased by 0.5% and 0.4%, respectively. The UK’s FTSE100 dropped only small nevertheless observed the British Pound trade plus 0.4% better on the day.

Asia-Pacific Market

Anytime a key market contributor is absent the financial markets are usually calm, however on Monday with all the UK's holiday, there had been small trading action anywhere. China carried on with its active role in the important Shanghai Index gaining 1% on the day; while the HK's Hang Seng little changed. Aussie's equities suffered a touch minus 0.6%, mostly with the drop of the financial sector. India's SENSEX piled up an additional 0.5% carrying on with its four-day rally. 

Commodity Market

The production difficulties brought on by Hurricane Harvey in the Gulf of Mexico area were not enough to elevate crude oil price, validating the lack of strength of the essential commodity. The WTI (West Texas Intermediate) contract dropped sharply of 3.1% with numerous concerns on Monday during the early trading, reaching a marginal new one calendar month low before recuperating to some degree further on. 

Yellow Metal took advantage of the lack of strength of the US Dollar as it was finally broken through the $1300 price level that kept the Gold for almost the entire year. Gold leaped 4% on the Arca Gold Bugs Index (NYSE). The vigor in the metal sector came as Yellow Metal for December delivery contract increased up by $17.40 to $1,315.30 on the day. 

In event Gold stays on top of the crucial level within the forthcoming weeks, a long-term trend transformation will be validated which could fire up a whole new bull market.

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