Today's Economic News

Market Overview

Final Manufacturing PMI showed expansion as data came out with a 51.3, higher than the expected 50.9. However, ISM Manufacturing PMI showed contraction in the economy as the data recorded a second-month decline to 48.7 from 49.2. This divergence in results may spell an economic downturn for the manufacturing sector on the domestic scale as the major manufacturing companies recorded a contraction in the economy. 

A weak JOLTS Job Openings report later will spark doubt in the US economy's strength. This will increase demand for the metals, especially the GOLD and SILVER.

Traders see a 59% chance that the Fed will begin cutting rates in September, up from about 53% before the ISM data was released, according to the CME's FedWatch tool. 

U.S. 10-year note yields US10Y fell to a two-week low following the soft manufacturing data. Yesterday closed at 4.406% from last week's 4.502%, a 9.6 points drop.

The Dow Jones Industrial Average fell 115.29 points, or 0.30%, to 38,571.03, the S&P 500 gained 5.89 points, or 0.11%, to 5,283.40 and the Nasdaq Composite gained 93.66 points, or 0.56%, to 16,828.67.

GOLD -GOLD has failed to continue moving down as the bullish sentiment and volume came in aggressively after soft manufacturing data, causing doubt towards the strength of the US Economy. With the report on JOLTS Job openings to be reported soon, the results may signify a sentiment direction for the entire week or month for the GOLD. The price has returned within the range between 2365.443 and 2332.174.

SILVER - The market has bounced off 29.900 after touching the structure. After which was followed by a strong momentum and volume for the bulls. A return above 30.938 may mean that the market is rising alongside GOLD increase. Not to mention, there is also the geopolitical tensions in the Middle East concerning Israel with Oil prices diverging due to having sufficient spare capacity and commercial stock builds to absorb any potential supply disruptions, limiting the impact on prices. An increased risk will bring the Silver higher in prices as demand for said metal will increase.

DXY - As we expected, the dollar has fallen lower and is only expected to go lower. After failing to sustain prices above 104.607, the price is now running at 104.055 and we call it to fall toward 102.775. A deep retracement, but is something we can expect when data releases later in the day.

GBPUSD -The market has risen considerably after the dollar reported soft growth and is now trading above 1.27938. The price can climb toward 1.28508 and the market's trend is expected to continue. There will be chances for re-entry soon.

AUDUSD - The market has shown its respect for bullish structures and the volume and sentiment is reflecting clear growth for buyers. The price has climbed above 0.66541 and is expected to grow toward 0.67142.

NZDUSD -The market has shown considerable growth after breaking through relevant structure. The up trend is continued from here and we expect for the price to climb higher.

EURUSD - The price has broken out of the range and has shown conviction in the bullish trend. The price has broken through 1.08950 and is expected to trade higher.

USDJPY -The Yen has recovered after losing out on the dollar last week. It has now gained strength and is trading under 156.516. We expect the price to drop further. However, that is also dependent on BoJ intervention and Japan economy as investors still keep the economy in check to ensure that the country is starting to climb out of deflation.

USDCHF -The market has broken the low aggressively after failing to keep the price above 0.90054. We expect the price to continue falling from here as there is no apparent structure to stop the market from falling.

USDCAD - CAD weakness is apparent as its peers start to recover against the greenback but it alone fails to do anything against the dollar. The price is kept consolidated between 1.36563 and 1.36052. The data release later this day to affirm doubt on the US economy may affect this market and cause it to move. Until then, we wait for further price action to confirm our bias.