FOREX 4 minutes to read

NY Open: Wall Street bitten by FANGs

Summary:  The biggest and the brightest of Nasdaq's tech stars have lost some shine today and taken the rest of Wall Street lower. Meanwhile, the Brexit-beleaguered sterling is hurting too.


Facebook (FB: Nasdaq), Apple (APPL: Nasdaq), Netflix (NFLX: Nasdaq), and Google (Alphabet GOOGL: Nasdaq), collectively referred to as the FANGs, have taken a bite out of Wall Street in early trading. Facebook is on the receiving end of a lot of negative press stemming from earlier scandals and the departure of several key executives. Apple is suffering lower than expected demand for its latest iPhones. The acrimonious end to the Asia Pacific Economic Cooperation summit which reduced expectations for a near-term resolution to the US/China trade war is another factor weighing on equities.

The US dollar is higher than its opening level except against EURUSD and USDCHF.  EURUSD is supported by bullish technicals with some studies suggesting a break above resistance in the 1.1450-90 area would suggest a short-term bottom is in place (1.1215) and set the stage for further gains to 1.1620.  EURUSD support is at 1.1380 and 1.1340.

Sterling is a headline play. Negative headlines, especially those suggesting that Prime Minister Theresa May lost a “no confidence” vote, would drive GBPUSD to 1.2660 and then 1.2350. Positive news will keep GBPUSD bears on their toes, and worried about the UK Parliament passing the Brexit deal.   The antipodean currencies are suffering from lower commodity prices.

USDCAD is tracking broad US dollar and oil price moves. This morning’s 2.16% plunge in WTI, since New York opened, helped solidify the USDCAD floor in the 1.3140-50 zone. The drop in oil prices came after Saudi Aramco said it was cancelling plans to launch the world’s largest corporate bond sale, in part due to uncertainty around oil prices. Earlier, Russia's Energy Minister Alexander Novak raised the spectra that presumed Opec production cuts being announced at the December 6 meeting, may not be a sure thing.
Enlarge
EURUSD, hourly. Source: Saxo Bank
Disclaimer

Saxo Capital Markets (Australia) Pty Ltd prepares and distributes information/research produced within the Saxo Bank Group for informational purposes only. In addition to the disclaimer below, if any general advice is provided, such advice does not take into account your individual objectives, financial situation or needs. You should consider the appropriateness of trading any financial instrument as trading can result in losses that exceed your initial investment. Please refer to our Analysis Disclaimer, and our Combined Financial Services Guide and Product Disclosure Statement. All legal documentation and disclaimers can be found at https://www.home.saxo/en-au/legal/.

The Saxo Bank Group entities each provide execution-only service. Access and use of Saxo News & Research and any Saxo Bank Group website are subject to (i) the Terms of Use; (ii) the full Disclaimer; and (iii) the Risk Warning in addition (where relevant) to the terms governing the use of the website of a member of the Saxo Bank Group.

Saxo News & Research is provided for informational purposes, does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. No Saxo Bank Group entity shall be liable for any losses that you may sustain as a result of any investment decision made in reliance on information on Saxo News & Research.

To the extent that any content is construed as investment research, such content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication.

Please read our disclaimers:
- Full Disclaimer (https://www.home.saxo/en-au/legal/disclaimer/saxo-disclaimer)
- Analysis Disclaimer (https://www.home.saxo/en-au/legal/analysis-disclaimer/saxo-analysis-disclaimer)
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)