Archives of “August 25, 2020” day

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US trade representative Navarro: Phase I trade deal alive and well

  
  Analysis

White House trade representative Peter Navarro speaking

The White House and trade representative Peter Navarro is speaking saying:
  • Phase I trade deal with China is “alive and well”
  • China buying commodities as it said it would.
Overnight it was reported that US trade representative light highs are Robert Lighthizer and China’s Liu He had a telephone conference. The comment was “Both sides see progress”this despite China buying less than half of what it promised to buy from the US in January as a result of the pandemic. There are reports that China has booked ships to import US will next month. However those arrangements are not guaranteed.
One has to think that the Trump administration would prefer to keep the realities of the phase 1 trade deal more positive ahead of the election. After all, with all the tariffs enacted (that is a tax to consumers) admitting failure would not be good for the general public to know.

Gold stays below the 50% midpoint today. Sellers remain more in control

  
Analysis, Gold / Silver

Down -0.45% on the day.

The price of gold has moved lower in trading today. It currently trades at $1920.30, $-8.45 or -0.45%. The low today has reached $1914.31. The highs extended to $1937.56.
Down -0.45% on the day.
Technically, yesterday the price moved up to test its 100 hour moving average (blue line in the hourly chart above). Sellers came in near the level and push the price back to the downside.
In trading day the corrective high off of the Asian low stalled ahead of its 50% midpoint of the range for August. That level comes in at $1939.41. The high price today reached $1937.56. The falling 100 hour moving average is currently right near that 50% retracement level at $1939.32. Needless to say stay below the 50% retracement and the 100 hour moving average keeps the sellers more in control.
On the downside the next target comes against day lower trend line connecting recent lows from August 17 and August 21. That trend line comes in around the $1903 level. A move below would open the door for a retest of the August 12 low at $1863.15.
Sellers remain more in control in the precious metal. It would take a move back above the $1939 level to tilt the bias back higher.

European shares give up gains and close near session lows

  
Analysis, Global Indices

UK FTSE 100 leads the move to the downside

The major European indices give up gains of over 1% and are ending the day around or below unchanged (and at session lows). The UK FTSE is the biggest decliner. The GBP is also the strongest currency on the day.

The provisional closes are showing:
  • German DAX, +0.1%. The traders highs +1.2%
  • France’s CAC, +0.1%. It traded as high as 1.3%
  • UK’s FTSE 100, -1.1%. It traded as high as 1.13%
  • Spain’s Ibex, fell -0.03%. It traded as high as 1.49%
  • Italy’s FTSE MIB fell -0.3%.. It traded as high as 1.26%
As London traders head for the exit, the GBP remains the strongest of the major currencies. The JPY remains the weakest. The USD has stayed mostly lower on the day but has traded up and down in choppy trading.

Laura strengthens into a hurricane

  
  Analysis

Storm hits warm gulf waters

Storm hits warm gulf waters
As anticipated, tropical storm Laura has now strengthened into a category 1 hurricane. The storm now has maximum sustained winds of 120 km/h.
The storm is expected to continue to intensify over the warm open waters in the gulf of Mexico as it heads towards landfall on Wed-Thurs. Its latest forecast track is further to the west than previously.
“Now that an inner core appears to be trying to form, conditions appear ripe for at least steady intensification, and rapid intensification is becoming more likely before landfall,” the NHC said in its latest advisory. “In fact, almost all of the explicit guidance models, save the statistical-dynamical models, are showing a period of rapid strengthening at some point during the next couple of days.”
Much of the US offshore production has now shut down, along with refineries on the coast.

EuropeFX: Everything you need to know about CFDs trading

  
  Analysis
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What you need to know about trading CFDs

EFX
Contracts-for-difference (CFDs) are popular trading instruments that provide investors with unique potential opportunities to profit in specific markets. This includes taking advantage of certain assets price movement, without actually owning the asset itself.

Thousands of CFDs exist, which are now a common fixture amongst brokerages’ offerings. CFDs are quite simplistic, as profit is calculated as the difference between the entry point of the trade and its exit point.

Popular types of CFDs

(more…)

Germany Q2 final GDP -9.7% vs -10.1% q/q prelim

  
Analysis, Economy
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Latest data released by Destatis – 25 August 2020

  • Non-seasonally adjusted GDP -11.3% vs -11.7% y/y prelim
  • Working day adjusted GDP -11.3% vs -11.7% y/y prelim
  • Private consumption -10.9% vs -9.8% q/q expected
  • Prior -3.2%; revised to -2.5%
  • Government spending +1.5% vs +1.5% q/q expected
  • Prior +0.2%; revised to +0.6%
  • Capital investment -7.9% vs -12.2% q/q expected
  • Prior -0.2%; revised to -0.5%
Slight delay in the release by the source. The preliminary report can be found here.
The German economy shrank by slightly less than initially estimated, but it still is the biggest quarterly contraction on record amid the fallout from lockdown measures and the virus outbreak in general from April to June.
There was a heavy drag on consumption/spending but that is largely unsurprising and that contributed to the sharp decline in economic activity seen last quarter.
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