Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact [email protected].

U.S. stock futures held steady after a month marked by losses across major indices, as the Nasdaq Composite and S&P 500 finally halted their four-day negative streak. Futures tied to the Dow Jones Industrial Average dipped slightly by 0.1%, while S&P 500 and Nasdaq 100 futures also saw marginal declines of the same magnitude. During the main trading session, the Nasdaq Composite posted its most significant gain of the month, surging by 1.6%, and the S&P 500 recorded a nearly 0.7% increase. Impressively, these advances occurred even as the 10-year Treasury yield reached its highest level since November 2007, climbing by around 9 basis points to 4.34%. This simultaneous rise of tech-heavy stocks and yields drew attention in Wall Street, where the historically challenging relationship between tech shares and higher interest rates was defied. Despite the current optimism, analysts remain cautious, highlighting potential vulnerabilities associated with the recent Treasury yield surge, including impacts on refinancing and concerns for tech and growth stocks with high price-to-earnings ratios.

Looking ahead, market watchers await crucial corporate earnings releases from prominent retail giants Lowe’s and Macy’s, as well as Nvidia, a significant tech gainer that plays a pivotal role in gauging sentiment within the AI sector. Economic data releases, such as the Philadelphia Fed’s nonmanufacturing survey, Richmond Fed’s manufacturing survey results, and July’s existing home sales data, will also be scrutinized for insights into the health of the economy. Additionally, all eyes are on Fed Chairman Jerome Powell’s forthcoming remarks at Jackson Hole, expected to provide further clarity on the central bank’s perspective regarding inflation trends. This context underscores the delicate balancing act investors face as they assess the interplay between market performance, interest rates, and economic indicators in the months ahead.

Data by Bloomberg

On Monday, the overall market displayed a positive trend with all sectors collectively gaining 0.69%. The Information Technology sector led the way with an impressive surge of 2.26%, followed by Consumer Discretionary at 1.15% and Communication Services at 0.80%. Health Care experienced a marginal uptick of 0.09%, while Materials and Financials saw minimal gains of 0.02% and -0.09% respectively. On the other hand, Industrials and Utilities witnessed slight declines of -0.14% and -0.60%, while Energy, Consumer Staples, and Real Estate faced more substantial decreases, sliding by -0.62%, -0.64%, and -0.88% respectively.

Major Pair Movement

On Monday, the US Dollar faced a slight decline as major currency pairs remained relatively stable due to a lack of significant macroeconomic events. Market sentiment stayed negative, causing government bond yields to rise. The US Treasury yield reached its highest point since 2007, reflecting concerns that global central banks might extend monetary tightening measures to control inflation.

China continued to face challenges, with reports showing a continued decline in government land sales revenue for the 19th consecutive month in July. The People’s Bank of China (PBoC) made a minor expected adjustment by reducing the one-year Loan Prime Rate by 10 basis points to 3.45%. However, this fell short of more aggressive expectations, causing the Yuan to weaken. UBS also lowered China’s 2023 real GDP growth forecast from 5.2% to 4.8%.

The German Bundesbank’s monthly report indicated that inflation might persist above central bank targets for a while, while Q3 growth is predicted to remain largely flat.

Currency pairs displayed varied trends: EUR/USD struggled to surpass 1.0900, GBP/USD appeared better positioned for gains at around 1.2740, the Australian Dollar gained against the US Dollar alongside rising Gold prices, and USD/CAD rose due to decreased oil prices impacting the Canadian Dollar.

USD/JPY traded above 146.00 and near its recent high of 146.53, with growing speculation that the Bank of Japan might need to adjust its ultra-loose monetary policy soon.

The upcoming week’s macroeconomic calendar had limited offerings, with attention turning to the Jackson Hole Symposium starting next Thursday. Federal Reserve Chair Jerome Powell and European Central Bank President Christine Lagarde were scheduled to speak on Friday, raising anticipation for potential hints about future policy decisions.

Picks of the Day Analysis

EUR/USD (4 Hours)

EUR/USD Holds Near 1.0900 Amid USD Struggles and Chinese Woes

The EUR/USD pair remains steady around 1.0900 as the US Dollar faces challenges despite a sour mood. Asian stocks dip due to ongoing Chinese real estate concerns, while the People’s Bank of China (PBoC) cuts rates as expected, impacting the Yuan. Global bond yields rise, led by the US 10-year Treasury note hitting a 2007 high. Germany sees mixed economic news, with Producer Price Index (PPI) decline but Bundesbank’s caution on inflation. Upcoming data includes Euro Zone’s June Current Account and US July Existing Home Sales and August Richmond Fed Manufacturing Index, alongside insights from Fed officials.

Chart EURUSD by TradingView

According to technical analysis, the EUR/USD moved higher on Monday and managed to reach the upper band of the Bollinger Bands. Currently, the price is slightly below the upper band of the Bollinger Bands. The Relative Strength Index (RSI) currently stands at 51, indicating that the EUR/USD is currently back in a neutral stance.

Resistance: 1.0935, 1.1038

Support: 1.0865, 1.0789

XAU/USD (4 Hours)

XAU/USD Recovers Briefly as USD Strengthens Amid Economic Uncertainties

Spot Gold hit a low of $1,884.77 on Monday before recovering slightly as XAU/USD responded to reduced US Dollar demand, eventually stabilizing around $1,890. The USD rebounded due to a deteriorating market sentiment, causing US indexes to dip and government bond yields, including the 10-year Treasury note, to surge to their highest levels since 2007, with the 2-year note nearing 5%. Growing concerns about a potential economic setback persist as global central banks remain cautious about ending the ongoing monetary tightening cycle, and worries intensify due to China’s currency struggles and limited action. The macroeconomic calendar offers little this week, heightening anticipation for insights from Federal Reserve Chair Jerome Powell and European Central Bank President Christine Lagarde at the Jackson Hole Symposium on Friday, as investors seek guidance on future directions.

Chart XAUUSD by TradingView

Based on technical analysis, the XAU/USD moved higher on Monday and was able to move near the upper band of the Bollinger Bands. Currently, the price is moving just below the upper band of the Bollinger Bands. The Relative Strength Index (RSI) is currently at 48, indicating that the XAU/USD pair is now in a neutral stance.

Resistance: $1,899, $1,912

Support: $1,892, $1,885

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact [email protected].

This week, key economic players such as Germany, the UK, and the US will publish their flash manufacturing PMI and flash services PMI figures. These releases have the potential to impact market volatility. We advise traders to stay cautious and keep an eye on the latest updates.

Here are some notable highlights for the week:

Flash Manufacturing PMI for Germany, the UK, and the US (23 August 2023)

Germany’s manufacturing PMI declined from 40.6 in June 2023 to 38.8 in July 2023, marking deteriorating business conditions within the country’s manufacturing sector. This figure for July is also the lowest reading since May 2020.

Meanwhile, the UK’s manufacturing PMI for the same period fell from 46.5 to 45.3. In contrast, the US’ manufacturing PMI for the same period increased from 46.3 to 49.

The next set of data will be released on 23 August. Analysts predicted manufacturing PMIs are 38.6 for Germany, 46.2 for the UK, and 49.5 for the US.

Flash Services PMI for Germany, the UK, and the US (23 August 2023) 

Germany’s services PMI declined from 54.1 in June 2023 to 52.3 in July 2023, indicating the slowest growth in five months. Similarly, the UK’s services PMI declined from 53.7 to 51.5 during this period, making July the third consecutive month of slowing activity across the country’s service sector. Finally, the US’ services PMI also fell from 54.4 to 52.3 during the same period. 

Analysts’ predicted services PMIs for August 2023 are as follows: Germany at 51.5, the UK at 53, and the US at 52.

Germany’s Ifo Business Climate Index (25 August 2023)

Germany’s Ifo Business Climate Index fell for the third consecutive month in July 2023, indicating pessimistic expectations for the coming months. The July figure of 87.3 is also the lowest level since November 2022. 

The figure for August 2023 will be released on 25 August, with analysts expecting a reading of 86.9.

Jackson Hole Economic Symposium (25–27 August 2023) 

The Jackson Hole Economic Symposium is an annual symposium that focuses on key economic issues affecting the world.

Its participants include prominent financial figures and leading market players from all around the globe. Proceedings from the symposium might hence have an impact on market sentiment and movements.

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact [email protected].

The stock market endured its third consecutive session of decline as investors grappled with the latest earnings reports and economic indicators, compounded by a surge in interest rates to new highs. The Dow Jones Industrial Average experienced a notable drop of 290.91 points, or 0.84%, marking its first close below the 50-day moving average since early June. This downturn raised concerns about a potential downtrend. Similarly, the S&P 500 and Nasdaq Composite also faced losses of 0.77% and 1.17%, respectively, exacerbating the market’s unease.

The unsettling trend was exacerbated by the 10-year U.S. Treasury yield’s climb to levels unseen since October 2022. The rise in rates followed the Federal Reserve’s release of minutes from its July meeting, which highlighted lingering concerns about the risk of inflation surging upward. The market witnessed a mix of outcomes among major companies, with retail giant Walmart’s stock dipping over 2%, despite exceeding expectations for earnings, revenue, and revised annual projections. Conversely, computer networking company Cisco Systems bucked the trend, gaining more than 3% thanks to its better-than-anticipated quarterly earnings report. As the market faced a turbulent August, characterized by losses and a broad index slump of over 4%, analysts like Chris Fasciano from Commonwealth Financial Network acknowledged the pullback as a potentially healthy recalibration after an earlier robust rally.

While some respite was found in the form of lower jobless claims and a positive uptick in the Philadelphia Federal Reserve’s manufacturing index for August, the overarching narrative remained one of caution and uncertainty as investors navigated through the intricate interplay of earnings releases, economic data, and interest rate fluctuations.

Data by Bloomberg

On Thursday, the stock market witnessed a mixed performance across various sectors. Energy saw a notable gain of +1.11%, while materials experienced a slight decline of -0.18%. The utilities and financial sectors also dipped, with losses of -0.33% and -0.50% respectively. Communication services and real estate faced setbacks of -0.59% and -0.75%, while health care and industrials both saw decreases of -0.76% and -0.84%. The information technology sector experienced a larger drop of -0.96%, while consumer staples and consumer discretionary sectors recorded more significant declines of -1.01% and -1.58% respectively.

Major Pair Movement

Amidst risk aversion and rising Treasury yields, the US Dollar surged across the board during the American session. The Dow Jones index faced a third consecutive day of losses, sliding by 0.85% and registering its lowest close in a month. Concerns about China’s economic prospects combined with expectations of prolonged higher interest rates contributed to market unease.

US Treasury yields displayed a mixed performance, with the 10-year yield hitting 4.32%, its highest since 2007, before retracting, while the 30-year yield rose to 4.42%, its peak since 2011. The US Dollar Index ended the day steady at 103.40 after briefly touching two-month highs at 103.59.

US Initial Jobless Claims dropped to 239,000 for the week ending August 12, surpassing expectations. However, Continuing Jobless Claims increased to 1.716 million in the week ending August 5, reaching their highest point in four weeks. The Philadelphia Fed Manufacturing Survey provided a positive surprise by climbing from -13.5 to 12.

Looking forward, attention shifted to the upcoming Jackson Hole Symposium, as Friday’s US releases were not anticipated to be top-tier. The EUR/USD initially rose before declining during American trading hours, marking a six-week low. The Japanese Yen recovered ground despite rising government bond yields, benefiting from equity market declines and a slight US Dollar slowdown. GBP/USD experienced significant gains but failed to hold above the 20-day Simple Moving Average, while the Australian jobs report impacted the Aussie’s performance. USD/CAD continued its upward trajectory, and NZD/USD fell before slightly recovering from its lows.

Picks of the Day Analysis

EUR/USD (4 Hours)

EUR/USD Extends Losses Amidst Dollar Strength and Market Caution

During the American session, the EUR/USD currency pair faced its fifth consecutive day of decline, shifting into negative territory. The US Dollar maintained its robust stance, benefiting from risk aversion and higher Treasury yields. Initially rising to approximately 1.0920, the pair later weakened, settling around the 1.0860 range.

The Euro’s initial surge in the American session gave way to a reversal, driven by the diminishing yield difference between US and German bonds, which exerted downward pressure on the EUR/USD. Furthermore, a drop in equity values amplified demand for the US Dollar. Looking ahead, Eurostat is set to release the final July Consumer Price Index, expected to hold no significant surprises with an annual rate of 5.3%. Additionally, Construction Output data for June will also be reported.

The prevailing narrative continues to favor the US Dollar, supported by recent US economic indicators and a climate of general market caution. As such, any potential recoveries in the EUR/USD are likely to be restricted until a shift in market sentiment occurs.

Chart EURUSD by TradingView

Based on technical analysis, the EUR/USD moves lower on Thursday, creating a push for the lower band of the Bollinger Bands. Currently, the price is moving around the middle band of the Bollinger Bands. The Relative Strength Index (RSI) presently stands at 44, signifying that the EUR/USD is currently in a bearish sentiment with a potential to goes back to neutral stance.

Resistance: 1.0935, 1.1038

Support: 1.0865, 1.0789

XAU/USD (4 Hours)

XAU/USD Hits Lowest Levels Since March Amid Gloomy Market Mood and Central Bank Concerns

Gold prices are facing downward pressure, falling to their lowest since March and hovering around the $1,890 mark, as a somber market sentiment persists. The risk-averse stance among investors was triggered by the US Federal Reserve’s recent release of the August meeting minutes, revealing apprehensions regarding inflation risks and potential for further rate hikes. This uncertainty extends beyond the Fed, with the Bank of England hinting at prolonged rate hikes and the Reserve Bank of New Zealand considering potential increases in the future. Amid these central bank concerns, gold’s value remains under strain.

Chart XAUUSD by TradingView

Based on technical analysis, the XAU/USD witnessed a slight decrease on Thursday, the price managed to create a push for the lower band of the Bollinger Bands during this movement. Currently, the price is moving near the middle band of the Bollinger Bands. The Relative Strength Index (RSI) is currently at 39, indicating that the XAU/USD pair is exhibiting a somewhat bearish sentiment.

Resistance: $1,899, $1,912

Support: $1,892, $1,885

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact [email protected].

Dear Client,

As part of our commitment to provide the most reliable service to our clients, there will be server maintenance this weekend.

Maintenance Hours :
19th of August 2023 (Saturday) 02:00 – 07:00 (GMT+3)

Please note that the following aspects might be affected during the maintenance:

1. The price quote and trading management will be temporarily disabled during the maintenance. You will not be able to open new positions, close open positions, or make any adjustments to the trades.

2. There might be a gap between the original price and the price after maintenance. The gaps between Pending Orders, Stop Loss and Take Profit will be filled at the market price once the maintenance is completed.

3. Please refer to MT4/MT5 for the latest update on the completion and market opening time. Our services will be back online once the maintenance is completed.

Thank you for your patience and understanding about this important initiative.

If you’d like more information, please don’t hesitate to contact [email protected].

Stock markets experienced declines on Wednesday as investors absorbed insights from the Federal Reserve’s July meeting, which hinted at the possibility of raising interest rates. The Dow Jones Industrial Average dropped by 0.52%, concluding at 34,765.74, while the S&P 500 decreased by 0.76% to settle at 4,404.33. The Nasdaq Composite also saw a decline of 1.15%, ending the day at 13,474.63. This marked the second consecutive session of losses for the major indices.

During the July meeting, the Federal Reserve officials discussed the potential need for further tightening of monetary policy to counter ongoing inflation. The meeting summary highlighted that most participants recognized significant upside risks to inflation due to it remaining above the Committee’s longer-term goal. The current federal funds rate lies within a range of 5.25% to 5.5%, reaching its highest point in over two decades. The markets’ reaction to the meeting minutes reflected concerns about the economic backdrop and the potential need to curtail demand in order to achieve price stability. Consequently, market sentiment was impacted, leading to declines across various sectors, with Intel and other industries experiencing notable drops.

Data by Bloomberg

On Wednesday, a broad decline was observed across all sectors of the market, with the overall market dropping by 0.76%. Some sectors managed to buck the trend, with Utilities gaining 0.46%. However, most sectors faced losses: Financials were down by 0.21%, Consumer Staples by 0.28%, Industrials by 0.55%, Materials by 0.66%, Health Care by 0.78%, Information Technology by 0.88%, Energy by 0.90%, Real Estate by 1.20%, Communication Services by 1.21%, and Consumer Discretionary by 1.27%.

Major Pair Movement

On Wednesday, the dollar index experienced a slight increase, recovering from earlier losses. This recovery was attributed to better-than-expected U.S. housing and industrial production data, as well as rebounding Treasury yields compared to euro zone yields. The release of Federal Reserve meeting minutes further supported the dollar’s performance later in the session. However, the dollar’s gains were somewhat limited by strong UK inflation data, which maintained expectations for a rate hike by the Bank of England (BoE) and boosted the pound.

Amid robust U.S. retail sales figures and ongoing uncertainties surrounding China’s economic stability, the dollar continued to attract interest from investors. The Fed meeting minutes aligned with previous indications, hinting at a potential additional rate hike, contributing to the extension of Treasury yields and the dollar’s turnaround from earlier losses.

The EUR/USD pair declined by 0.24% due in part to negative spreads between 2-year bund and Treasury yields. Sterling, while retreating from its Wednesday high, still gained 0.17% on the back of increased gilts-Treasury yields spreads, driven by strong UK core price growth, rising services inflation, and record-breaking basic earnings.

The USD/JPY pair saw a 0.47% increase, benefiting from rising Treasury-JGB yield spreads and breaching resistance levels. Risk-off sentiment stemming from China’s situation and recent rate cuts led to declines for the Chinese yuan (CNY) and the Australian dollar (AUD), with the latter hitting a 9-month low and the former nearing its 2022 record high.

Picks of the Day Analysis

EUR/USD (4 Hours)

EUR/USD Hits Lowest Level Since July Amidst Resurgent US Dollar Strength

The EUR/USD pair broke below the 1.0900 mark during the American session, marking its lowest point since early July, driven by the robust US Dollar. The US Dollar’s momentum was bolstered by higher US Treasury yields and cautious market sentiment, with the DXY testing July highs near 103.50. Despite mixed US data, the Federal Open Market Committee (FOMC) minutes revealed a cautious stance, hinting at potential rate stability. While some FOMC members expressed concerns about further tightening, the US Dollar regained strength, with the EUR/USD pair facing the prospect of extended losses amidst a backdrop of waning market sentiment and a resurgent Greenback.

Chart EURUSD by TradingView

Based on technical analysis, the EUR/USD moves lower on Wednesday, creating a push for the lower band of the Bollinger Bands. Currently, the price is moving around the lower of the Bollinger Bands. The Relative Strength Index (RSI) presently stands at 34, signifying that the EUR/USD is currently in a bearish sentiment.

Resistance: 1.0935, 1.1038

Support: 1.0865, 1.0789

XAU/USD (4 Hours)

XAU/USD Holds Above $1,900 as US Dollar Dominance Persists Amid Positive Economic Signals

Spot gold maintains a position just above the $1,900 threshold as the US Dollar retains its strength in a risk-averse climate, supported by favorable US data. July’s report showed a 0.1% month-on-month increase in Building Permits and a substantial 3.9% rise in Housing Starts, surpassing expectations. Additionally, Industrial Production climbed by 1%, while Capacity Utilization reached 79.3%. These figures, coupled with upbeat Retail Sales and the perception that the Federal Reserve is concluding its tightening phase, fuel optimism that the US economy is steering clear of a significant downturn. The imminent release of the July meeting Minutes from the Federal Open Market Committee (FOMC) prompts anticipation for insights into future monetary policy. Market consensus leans toward the Fed maintaining its stance in September and possibly throughout the year, with a potential shift toward rate cuts in 2024. The labor market’s persistent tightness remains a focal point for the data-driven central bank. Odds favoring a September hold stand at 88.5%, while the probability of a 25 basis points hike in November is at 36.2%, according to the CME FedWatch Tool, as markets seek confirmation on the trajectory beyond September. While definitive answers may be unlikely, the FOMC document offers a chance for further clarity.

Chart XAUUSD by TradingView

Based on technical analysis, the XAU/USD witnessed a slight decrease on Wednesday, the price managed to create a push for the lower band of the Bollinger Bands during this movement. Currently, the price is moving at the lower band of the Bollinger Bands. The Relative Strength Index (RSI) is currently at 28, indicating that the XAU/USD pair is exhibiting a somewhat bearish sentiment.

Resistance: $1,899, $1,912

Support: $1,892, $1,885

Economic Data

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact [email protected].