NY Open: Forex can't find traction
FX Trader, Loonieviews.net
FX markets are a tad choppy but ultimately directionless. Traders seem to have digested all the bad news about Turkey. Contagion risks remain, but USDTRY is well below the 6.9550 peak. Prices are currently trading at 6.5325. Turkish President Recep Tayyip Erdogan said that Turkey would boycott electronic products from the US, which clearly isn’t an attempt at defusing tensions with America.
Wall Street liked the Turkish lira rally, and the three major indices opened in positive territory. News that Home Depot (HD: NYSE) beat Wall Street forecasts helped with the positive statement.
WTI oil prices were higher in early New York trading, rising from the opening level of $67.84/barrel to $68.34/b. Prices were boosted by a report that Saudi Arabia cut production by 200,000 barrels/day in July. The production cut and the prospect that Iran supplies may be sanctioned supported prices. However, concern about slowing global demand, sparked by the China/US trade war, led to selling, and WTI is currently trading at $67,80/barrel.
USDCAD traders are ignoring the ebbs and flows of oil prices, in part because Canadian major crude export, Western Canada Select (WCS) trades is trading at a CAD$35.48 discount to WTI.
EURUSD inched higher in early New York trading but couldn’t crack minor resistance at 1.1420 and prices drifted steadily lower. A break below 1.1360 suggests further losses to 1.1310. EURUSD price action is just noise with traders waiting for tomorrows US economic reports which include Retail Sales.
USDJPY opened with a negative bias as is hovering above minor support at 110.70. If broken it would suggest further losses to 110.00. Traders are reluctant to buy USDJPY because of the ongoing geopolitical risks. The US tariffs on China can take effect as early as August 31. The US is still feuding with Iran, Russia, Mexico, Canada, and Turkey.
Quarterly Outlook Q2 2022
Quarterly Outlook Q2 2022: The End Game has arrived
- Shocks from covid and the war in Ukraine have forced the global financial and political world to change, but what will the end game be?
Productivity and innovation have never been more importantAs the world economy hits physical limits and central banks tighten their belts, could equities be facing a 10-15% downside?
The great EUR recovery and the difficulty of trading itIf the terrible fog of war hopefully lifts soon, the conditions are promising for the euro to reprice significantly higher.
Tight commodity markets – turbocharged by war and sanctionsWith supply already tight, commodities keep powering on. But will it last for yet another quarter?
Between a rock and a hard placeGeopolitical concerns will add upward price pressures and fears of slower growth, while volatility will remain elevated.
The Great ErosionInflation is everywhere and central banks try to combat it. But will they get it under control in time?
Australian investing: Six considerations amid triple Rs: rising rates, record inflation and likely recessionWhile global financial markets are struggling in an uncertain world, the commodity-heavy Australian ASX index is poised to keep a positive momentum.
Cybersecurity – the rush to catch up with realityWith the invasion of Ukraine, governments and private companies are rushing to reinforce their cyber defenses.