ScopeMarkets

ScopeMarkets

EURGBP saw its rally hinged at the resistance area of a descending channel after the latest GDP report saw the UK economy expand. Details of the report show the UK economy grew about 0.2% in the last quarter, beating estimated and improving from the previous quarter at 0.1%. This was accompanied by the monthly GDP report which crushed estimates with growth of 0.5%...

ScopeMarkets

The S&P 500 has been in some what indecisive mood today, with the inflation report providinmg a little bit of something for everyone. The rise in headline inflation saw consumer prices rise from 3.2% to 3%, marking the first rise after 12 consecutive declines for this key gauge. However, markets appear to be somewhat confused over whether to mourn the loss of...

ScopeMarkets

Today has seen yet another sign that Japanese inflation is cooling, with PPI falling back for the seventh consecutive month. That comes off the back of a decline in average cash earnings (2.9%->2.3%) and weakening household spending (-4.2%). This is hardly an environment that would lead the Bank of Japan into a rate hike, with the recent widening of the YCC policy...

ScopeMarkets

EURUSD has recovered into the 1.1000 price handle after exiting a bearish trendline running from July. Later on in the day, the current bullish momentum will face a litmus test when the latest CPI reports roll in. With expectations that inflation might recede, the EURUSD could end up forcing its way through the 1.1040 resistance that has subdued further price...

ScopeMarkets

The DAX has been hit hard over the course of August thus far, with German stocks on the back foot once again today. Despite being the traditional powerhouse of Europe, Germany appears to be struggling in terms of both economic output and above-target inflation. The latest German industrial production reading served to exemplify the troubles in Germany at the...

ScopeMarkets

Natural gas has finally broken through resistance today, with US gas pushing through the $2.762 resistance level to bring about a fresh one-month high. Elevated stockpiles in Europe have subdued calls for another winter spike in Europe despite the need to once again source product from around the world in the absence of Russian imports. Nonetheless, todays...

ScopeMarkets

US crude oil has been weakening in the wake of a batch of Chinese trade data that saw exports tumble by 14.5%. That represents the worst decline since February 2020, highlighting significant issues in global economic activity. From an energy perspective, the fact that we have seen both imports and exports tumble brings concerns that the lofty interest rates now...

ScopeMarkets

Following the strong price reversal from 1.2620, GBPUSD has continued to offer buyers the opportunity to scale in. The first retracement saw the bulls scale in at 1.2680 which created the right side of the inverse head and shoulder pattern. After the disappointing NFP report, the price broke through the neckline and had a retest at the start of the week, offering...

ScopeMarkets

Gold prices have come under renewed pressure as investors prepare for key inflation reports. Already down about -0.40% into the new trading week, upside momentum might be limited as the US dollar draws strength from a resilient economy amidst aggressive rate hikes by the Federal Reserve. A view of the 4hr chart shows its price within a wedge pattern with the bears...

ScopeMarkets

GBPUSD dropped further below 1.2700 after the Bank of England (BOE) hiked rates by 25bps with the door still open to future rate hikes as taming inflation remains the main objective. Exiting a trendline running from March 2023, GBPUSD is currently attracting bullish interest after the price met with support around 1.2600 which was the low of June 2023. With the...

ScopeMarkets

Crude oil prices have found themselves in a very strong zone that has tamed price appreciation since December 2022. Oil prices have remained in a strong uptrend amidst production cuts from Saudi Arabia and Russia accompanied by growing demand from China. With Central banks approaching the end of their tightening campaign, the outlook for energy prices is bullish...

ScopeMarkets

Bitcoin has continued to show slow price progress ever since it hit $31,800, its highest this year. Currently awaiting SEC’s approval as an ETF, the price pattern from a Daily point of view could be preparing for another big rally. With the price still holding above the ascending trendline, it is evident that for every bearish correction on the impulse move, a...

ScopeMarkets

Copper has been heading lower over the course of this week thus far, with a more fearful market environment bringing dollar strength and weakness for this key metal. Dr Copper is typically seen as a key gauge of global economic strength, but it is also inversely correlated with the dollar. That means that it can also experience selling pressure on strong data if...

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ScopeMarkets

The recent dollar rebound has brought about a pullback for precious metals, with gold falling back to trendline and Fibonacci support. The long-term uptrend signals a potential bullish trend coming into play, with the recent rise through $1983 bringing heightened confidence that this current pullback is a potential buying opportunity. Greater confidence comes in...

ScopeMarkets

The US dollar has been on the rise late, with equity market weakness translating into a upside for havens such as the greenback. For USDINR this has brought the currency pair back up into a major historical resistance level that could yet cause a significant breakout or reversal. The key line in the sand comes in the form of the prior swing-high at 82.79. A break...

ScopeMarkets

This week has seen plenty of action for traders, with a 25-basis point hike from the Federal Reserve providing one of the highlights. That move was factored in by markets, but traders kept a close eye on events at the FOMC and ECB for signs of the future rate path. Both decided to maintain an open stance, stating that further tightening remains a possibility given...

ScopeMarkets

The pound has enjoyed a day of upside, as the continued struggles in driving down inflation come back into play once again despite recent GBP weakness. The GBPUSD pair looks particularly interesting given the impending FOMC meeting. Markets currently price in a 98% chance of a rate hike today, meaning that the dollar volatility will likely be driven more by the...

ScopeMarkets

The Australian inflation data due out overnight brings the potential for AUD volatility, with traders once again looking out for clues as to whether the disinflation trend is set to ramp up. Market expectations for the quarterly CPI reading signal the potential for a decline from 1.4% to 1.0%. Meanwhile, the year-over-year figure has been forecast to weaken from...