Markets Stay Cautious Amid Sparse Economic Calendar
08 August 2023
The global markets are observing a somewhat quiet Tuesday, primarily characterized by the robustness of the American dollar and the contrasting frailty of the Japanese yen. The scarcity of key events on today's economic calendar, including the FOMC member Harker's speech during the mid-European session, contributes to the subdued pace of the market.
A glance at Monday's market dynamics provides context to the ongoing trends. The previous day marked a period of correction on indices, with the Dow Jones Index exemplifying this shift most remarkably. It virtually reversed the entire downfall experienced since the onset of August in just a single day. The NASDAQ Index, following suit, witnessed an impressive bounce off the 15,250 points support, indicating that the support continues to hold firm. The German DAX too rode the bullish wave during the session.
Presently, the EURUSD is steadfast below the critical resistance at 1.1045. As anticipated from the current strongest and weakest currencies, the USDJPY is rapidly ascending. Another intriguing move is unfolding on NZDUSD. Following an initial break from the uptrend line at the beginning of August, the descent has continued, aligning with the previously created sell signal.
Turning attention to commodities, both oil and gold are trending downwards. The silver, closely following suit, is approaching its monthly lows. However, oil made notable strides in the previous session, hitting new long-term highs. For instance, WTI reached a key horizontal resistance at $83 per barrel, suggesting it might be an opportune moment for traders to take profit action and potentially initiate a bearish correction.