The FOMC meeting minutes tops our list on the daily Forex news and trade opportunities as members of the policy-setting committee maintained divergent views about the next course of action.
18 August, AtoZForex – Federal Reserve members remain split on where or not to commence rate hikes soon. As seen in the July FOMC meeting minutes released yesterday.
#1 Why Moody’s affirmed Australia AAA rating
Even with the economic challenges being faced by Australia at the moment, the rating agency affirmed the country’s AAA ratings. The decision is primarily due to the fact that the country has a solid framework to survive the current vague economic environment. While also maintaining strong fiscal metrics.
#2 Saudi driving oil rally
In a speech last week, Saudi Arabia’s energy minister Khalid al-Falih sent hedge funds racing to cover large bets against oil prices. The Saudi Arabia’s energy minister’s short speech drove Brent crude 10 percent higher. He stated that the kingdom was motivated by calls from Venezuela to rethink the idea of freezing output, saying the kingdom was willing to “discuss any possible action”needed “to stabilize” prices on Organization of the Petroleum Exporting Countries (OPEC) ministers’ conference next month at the informal meeting in Algeria.
#3 Soros cuts gold holdings
Amid the recent extreme market volatility, the famous billionaire — George Soros — is reported to have cut a large chunk of his gold holdings via his Soros fund. A smart move, considering the fact that reports show an exit from his gold trades at almost the peak levels for the commodity as gold plunge expected.
Opportunity: Although the yellow metal seems to be in a range, it remains relatively safer to sell on rallies
#4 Crude oil stockpiles fall
After posting excesses for the past three weeks, crude oil stockpiles fell last week by 2.5 million barrels. This boosted oil prices further up, following the dominant bullish trend on the commodity.
#5 Fed officials split on rate hikes
As seen in the latest FOMC meeting minutes, Federal Reserve officials remained divided in July over the urgency to raise interest rates again. Those for rate hikes look to the near full employment labor market conditions. While those against rate hikes worry about the less than impressive condition of inflation.
Opportunity: Dominant USD weakness, buy AUDUSD
#6 Stronger Yen hurts Japanese exports
Japanese exports plunged in July at the fastest pace in seven years, as the surging yen hurts the country’s trade conditions.
#7 UK retail sales due
Following the stable unemployment figures shown yesterday at 4.9%, as well as a fall in claimants count change, the retail sales report for the country is due today. Being a primary gauge of consumer spending, this will be closely watched and is forecast to show a 0.1% change in the total value of inflation-adjusted sales at the retail level.
Opportunity: Considering the recent bearish trend on GBP, sell GBPNZD on disappointing data
#8 US Philly Fed Manufacturing Index
To conclude the daily Forex news and trade opportunities, we look at data due from the US. A figure above zero (0) indicates improving conditions and vice versa. We expect a reading of 1.4%, beating last months -2.9% release. The unemployment claims is also forecast to show 269k individuals filed for unemployment insurance for the first time during the past week. The USD remains weak following diminishing hopes of rate hikes as the July Fed meeting minutes showed a mixed picture.
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