Adjusting Market!

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Daily Outlook – 8 Sep 2020

By: Andria Pichidi

Markets seem to be adjusting expectations for Thursday’s ECB meeting.

  • Fresh tensions between the U.S. and China, – Trump suggested that he will sharply scale back economic ties with China. & Reports that China issued new visa restrictions targeting US media and that the US is considering a ban on cotton from certain areas in China on human rights concerns.
  • More Downside risks: Australia business conditions disappointing and Japan household spending falling short of expectations in July data.
  • UK consumer spending is improving
  • German exports rose 4.7% m/m in July, a further sign that the demand is coming back.
  • GER30 and UK100 closed up 2.05 and 2.4% respective
  • USA100 still under pressure as the correction in tech stock valuations continues and amid fresh signs of souring U.S.-China relations
  • PM Johnson to tell EU that Withdrawal Agreement never made sense, according to a report in the U.K.’s Telegraph (paywall).
  • EU Commission President von der Leyen in a tweet highlighted that the Withdrawal Agreement is “an obligation under international law and prerequisite for any future partnership”.

EUR – rebounded to 1.1826 (PP)

GBP – a dive in the pound on Brexit related news. Cable dove by over 1% to 12-day lows under 1.3126. PP (1.3186), S1 (1.3114)

JPY – dips to 106.20

CAD – reversed to 1.3086 (PP) after rising from Friday’s 1.30s lows

AUD – spiked to 0.7308 despite data (lower than expected but still higher than April’s pandemic hit)

USOIL – dropped below $ 39 per barrel – Demand concerns weighed on oil prices

Gold – Super Steady

TODAY: Brexit negotiations, EU Q2 GDP – All eyes will be on how US stocks will perform later today following the long weekend!

Biggest mover (EURGBP +0.27%) – The EURGBP rallied by around 1% in printing a 12-day high at 0.89945. In the 1-hour chart, the asset moves above all Mas, while fast Mas look to sustain their upside move as they aligned higher. Meanwhile, parabolic SAR, MACD, and Stochastic are positively configured.1H ATR at 0.0007 and Daily ATR at 0.0057


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