Market-Chatter|Libertex

2021-09-21 13:42:43 Trade CFDs with Libertex

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2021-09-21 13:27:12 Dollar still struggling for progress in late morning European trade

The dollar has made no headway this morning. A little earlier the EUR/USD did drop back briefly below 1.1720, but it has rebounded modestly again since. The GBP/USD has pushed a little higher at the same time as it now edges its way closer to the 1.37 handle. The commodity currencies are all still holding rebound gains due to the more benign risk backdrop and continued gains in the European stock markets and US equity futures. This has all added up to a continued downside drift in the USD index (USDX). Yesterday the dollar index failed to make any progress above 93.50 and so far today it has gradually leaked lower, falling back closer to the 93.00 level. The outlook for a positive start to US equity market trading is keeping this under a degree of pressure too. The US treasury yields have not gone anywhere either and that is not helping the dollar much at the moment. The USD index is currently trading near session lows, at 93.12

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2021-09-21 12:03:52 Evergrande - Markets fell on fears of an economic contagion triggered by the collapse of China's Evergrande, the world's most indebted property developer.

They owe approximately $300 billion to creditors and $120 million is due in interest payments from two bonds they hold this week.

Chinas housing market slowed down this year making it difficult for Evergrande to pay its suppliers. Evergrande itself has warned investors of a default, sending its stock price crashing.

According to its own website they employ 200.000 people and create more than 3.8 million jobs not just in the property sector.

Analysts have a divided opinion on how far a default could affect the global economy.

Source: Investopedia

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2021-09-21 11:32:51 Brent touches $75 again

Yesterday oil prices came under pressure as the global equity markets fell and widespread risk aversion impacted all asset classes. The falls in the Hang Seng also had an impact too as the slowdown in the Chinese markets and continued concerns of the Evergrande situation there remained elevated. This all impacted the oil markets and that led the price of Brent Crude oil to fall back. The price settled later, $1.42 lower on the NYMEX exchange. Brent fell back to as low as $73.50 yesterday, but it has rebounded well so far today, reaching levels just above $75 a short while ago. That rise has taken the daily bar up to a level where it might stall again and only a move back above $75.20 could open more upside. Brent has traded to as high as $75.02 so far and it has just backed off slightly, currently trading at $74.90

BRENT - To view the chart, please click here

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2021-09-21 11:11:43 The explosion in Nat Gas prices could have unforeseen consequences

The following is not something that has been covered much here, but most recently the price of Natural Gas has been surging. This is all due to shortages and a demand increase, coupled with a reduction in the supply of Nat Gas from Russia to Europe, said to be in the region of 25%. The ramifications of this here in the UK have been significant, with a reduction in CO2 production leading to a potential disruption of food supply chains as result of gas price increases causing shutdowns of fertilizer and CO2 production plants. There are also issues about overall electricity supplies both now and in the weeks ahead. This could also impact Europe too and this in turn could have implications elsewhere and in other markets as well. The one thing that springs to mind here; is the implication for a reduction in megawatt output across a number of countries, if the situation does deteriorate further. Under such circumstances could that not have significant implications for the cryptocurrency mining business? Of course there is no suggestion yet of an outright ban on the mining of Bitcoin, but we know the incredible amounts of power needed to facilitate that, especially for BTC. Meanwhile, BTC has just lifted back above 43k, currently trading at $43,175

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2021-09-21 11:11:13 EUR/USD edges lower even as European stocks extend opening gains

The European equity markets have been open for just over an hour now and the major markets here are extending their opening gains. That has seen the FTSE push above 6,975 now as the DAX rises back above 15,300. The CAC 40 is making the most progress in percentage terms so far. The move higher in the European markets is being accompanied by further gains in the US futures, as is to be expected. Strangely though the dollar is actually a little higher. The rebound in the USD/JPY is understandable given the equity market gains, but it is still well short of reclaiming the 110 handle. Perhaps the most surprising of all is the drop back in the EUR/USD, as it edges towards 1.1720 right now. However, perhaps than be explained by cross currency flow as the EUR/GBP in particular is falling back from earlier highs this morning. It is worth mentioning; that a good deal of the rebound in the EUR/USD yesterday could be explained for an opposing move in that cross yesterday. The EUR/USD is currently trading at 1.1722

EURUSD - To view the chart, please click here

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2021-09-21 10:19:03 TOP NEWS 21.09.2021

Important:
Australia - RBA Meeting Minutes (by the link below)
https://www.rba.gov.au/monetary-policy/rba-board-minutes/2021/2021-09-07.html

Economy:
USA - Building Permits (aug) - 14:30 CET
USA - Housing Starts (aug) - 14:30 CET
EU - ECB President Lagarde Speaks - 16:30 CET

Check our economic calendar:
libertex.com/economcalendar#/

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2021-09-21 10:00:05 The EU session starts NOW!

Best 5 instruments to trade during the EU session:

EURUSD
GBPUSD

DAX 30
CAC 40
FTSE 100

click to TRADE

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2021-09-21 09:56:10 Litecoin rebounds from $150

The break below $170 on Litecoin yesterday did as suggested and it did deliver a move to $150. That price point was clearly identified here as the next stop following that breakdown below $170. Well, that $150 level was more or less reached in subsequent trading. The exact low seen does vary of course depending on which venue one looks at, such is the variable and uncontrollable lows and highs in this market. In the view of this author that is a problem that cannot be solved without some kind of regulation. That of course is unlikely to happen any time soon, if at all. Irrespective of that Litecoin has done exactly as suggested and now it has rebounded back towards, and slightly above $160 earlier today. It remains to be seen if it can make further progress. In simplistic analytical terms, the $170 level is now the next hurdle for any further rebound. Litecoin is currently trading at $159.10

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2021-09-21 09:42:36 European equity markets set to reopen higher today

The rebound in the US futures overnight and steadier session in the Hang Seng so far today has helped the European equity futures to rebound. Yesterday the FTSE, CAC 40 and newly configured DAX 40 all took a pretty big hit. The FTSE 100 was actually the best performer of the three. The FTSE 100 dropped to as low as 6,828 at one stage, before later closing at 6,903 (-0.86%). The CAC 40 closed 1.74% lower, at 6,455, but it was the DAX that took the biggest hit of all, closing lower by 2.31%. The index fell back to as low as 15,019 at one stage, before later closing at 15,132. It had closed on Friday at 15,490. Hence, loss of 358 points on the session. Today the DAX futures are currently implying a reopening at 15,245 and it goes without saying that the 15k handle yesterday was clearly an important barrier to further downside. It remains to be seen just how far this rebound will lead today, and of course whether or not it is blown out once again, if sellers on rallies do return, as has been the vogue most lately

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