News

The dollar shrugged off better-than-expected U.S. Jobless Claims Data

Dollar

The dollar index which measures the greenback against a basket of major currencies, remains unchanged near the 93.20, despite the positive U.S. jobless data falling below the 1 million claims for the first time since March 21st. It seems that the stalemate over the new stimulus package is weighing on the dollar being weaker, a sign of positive risk sentiment leading investors to other assets for a better return. However, despite the U.S-China trade war escalation, trade officials from both sides are expected to recommit to the Phase 1 trade deal on Saturday and could help support the dollar to the upside if the outcome is positive.

Equities

Major US stock index futures rose slightly after better-than-expected U.S. jobless claims. Markets are still upbeat over the coronavirus vaccine hopes, where earlier this week Russia registered the world’s first vaccine and President Donald Trump announced the manufacturing of 100 million doses with Moderna. Market participants are still waiting for the resuming negotiations over the next relief bill, capping markets from a stronger upside. The Dow Jones Industrial Average futures rose to 27810, the S&P500 futures flat at 3367, and Nasdaq futures rose to 11182.

Metals

Gold prices higher amid the weakness in the dollar and the growing wariness over the new U.S. stimulus package. The price for the yellow metal could fluctuate depending on tomorrow’s U.S.-China trade talks outcome. The price of gold is currently holding flat at $1950,  and the price of a silver ounce lower at $26.75, and palladium futures slightly higher to $2190 for the day.

Oil

OPEC released this week a monthly report stating that the world oil demand will fall by 9.06 million barrels per day this year, a higher decline than the 8.95 million barrels per day expected last month due to the lower air travel caused by the pandemic. The West Texas Intermediate September delivery down to $41.99, and Brent blend October delivery also down to $44.75.

Major Economic Events

GMT Country Event Expectation Previous

9:00

EZ

GDP (QoQ)(Q2)

-12.1%

-12.1%

9:00

EZ

Trade Balance (Jun)

12.6B

9.4B

12:30

US

Retail Sales (MoM) (Jul)

1.9%

7.5%

13:15

US

Industrial Production (MoM) (Jul)

3.0%

5.4%

14:00

US

Business Inventories (MoM) (Jun)

-1.2%

-2.30%

14:00

US

Michigan Consumer Sentiment (Aug) 

72.0

72.5

17:00

US

U.S. Baker Hughes Oil Rig Count

-

176

Disclaimer

The prices and news mentioned in this outlook are absolutely no guarantee of future market performance and do not represent the view of ICM.COM. Financial markets can move in either direction causing profits to be made or complete losses to be incurred by the trader. Each trader must decide for themselves what their risk appetite is and ensure that correct risk management procedures are in place before placing any trades.

CFDs and Spot FX are complex instruments and come with a high risk of losing money rapidly due to leverage. 78.64% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs and Spot FX work, and whether you can afford to take the high risk of losing your money. Read More
Read More
Mail Call Chat