Market players face lack of market guides

Posted 08 August, 2018

The economic reports are scarce this week. The global markets may get interesting figures only on Friday once the UK and USA release economic reports. Till that time, the players cannot choose but monitor the development of the US-China trade conflict.

The conflict expectedly showed new development. The markets are now running from the risks after a short-lived break. Specifically, Washington has announced the list of additional Chinese goods subject to 25% tariffs beginning from August 23. As a result, the situation escalates more, entailing new series of concerns, in particular regarding further economic upturn under the tariffs imposed by both countries.

However, the markets did not fall in panics this time, which can be partly explained by the released figures of import and export supplies in China. The data was quite good, which means that the conflict is yet to put strong pressure on the trading.

At the same time, there are other guides in the market, so the currencies are following the sentiments towards the risk. The US dollar to yen rate is falling down to 111.00 driven by stronger demand for the Japanese currency. At the same time, European currencies have taken a back foot. However, the US dollar to yen rate has limited room for a decline – the rate is above 110.50 which may support it.

Previous forecast

09 August, 2018 16:54

← US dollar slightly improves expecting Friday economic reports

The US dollar again enjoys demand after the yesterday's trading session. The currency mostly gets support from the escalation of the US-China trade conflict, which took the centre stage this week. After the threats crossover, the players are not highly interested in risk assets and choose US dollar for now. However, the greenback lacks a strong driver for the more stable upturn.

US dollar slightly improves expecting Friday economic reports

Next forecast

07 August, 2018 16:06

Session closure above 1.16 can support further euro rebound →

The euro to US dollar exchange rate has faced good support after touching the late-June bottom at 1.1530 yesterday. The rate has become somewhat balanced again and started offsetting some losses. In this situation, traders become active seeing the price coming to the 1.15 handle, which is the key line for the bears.

Session closure above 1.16 can support further euro rebound
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