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Market View

Market Daily Outlook - Greenback is rising again

Friday, September 11, 2020 1:25 PM GMT

The US Dollar is counting the second positive week against its majors. The numbers are mixed,still, US recovery expectations are getting stronger gradually. The Initial Claims stay below 1mil for a second week, even though they remain increased. Also, the US Producer Price exceeded the forecasts as it rose by 0.3%. Reviewing the UK outlook, the manufacturing production declined by 9.4% YOY but still below the expectations at 10.4% and the UK GDP fell by 7.6% on the quarter. Regarding EU, German Wholesale Prices dropped by 2.2% YOY while Consumer prices remained stable. On the contrary, Spain’s Consumer prices continue falling for 5 months in a row. Worth mentioning, the Covid-19 infected cases reached 28mil and 909k people died globally.

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The stock markets are mixed today after the major week’s correction. US indices are getting higher in the pre-market as yesterday failed to hold their gains until the end of the session. Most Asian indices closed in positive discounting that the US market’s reaction. On the other hand, the EU equities are under soft selling pressure as GER30 is dropping by 0.4%, FRA by 0.25%, and ES35 by 0.99%. 

Both US30 and SPX500 hold the 50 SMA while GER30 is still consolidating.

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US30 Daily

SPX500 Daily

GER30 Daily 

The USOil is moving near the $37 area while remains heavily bearish. The US crude inventories increased by 2.032mil barrels in the last week based on the EIA data. 

The XAUUSD is forming a symmetrical triangle in the daily anticipating the next catalyst event.

Getting to the currencies, GBP is heavily under selling pressure against its counterparts.GBPUSD is forming an RSI positive divergence but its too early for any conclusions. Likewise, GBPCAD and GBCHF are having the same behavior.

GBPUSD 240m

Checking the ZuluTrade’s Traders Sentiment, the community is currently bullish on USDJPY, USDCHF, GBPJPY, and USDCAD while bearish on EURUSD and GBPUSD.

 

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The views expressed do not constitute investment or any other advice /recommendation /suggestion and are subject to change. Reliance upon information in this material is at the sole discretion of the reader. Opinions expressed in the report do not represent the opinion of ZuluTrade Social Trading Platform and do not constitute an offer or invitation to anyone to invest or trade.

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