{"id":39115,"date":"2020-08-12T11:12:04","date_gmt":"2020-08-12T11:12:04","guid":{"rendered":"https:\/\/errante.com\/newsroom\/midday-analysis-12th-august-2020\/"},"modified":"2020-08-12T11:12:04","modified_gmt":"2020-08-12T11:12:04","slug":"midday-analysis-12th-august-2020","status":"publish","type":"post","link":"https:\/\/errante.com\/id\/newsroom\/midday-analysis-12th-august-2020\/","title":{"rendered":"Midday Analysis – 12th August 2020"},"content":{"rendered":"\n
In Asia today, the Nikkei closed up 0.41%. Hong Kong HSI is up 0.96%. China Shanghai SSE is down -0.69%. Singapore Strait Times is up 0.47%. Japan 10-year JGB yield is up 0.0116 at 0.045. Overnight, DOW dropped -0.38%. S&P 500 dropped -0.80%. NASDAQ dropped -1.69%. 10-year yield rose 0.084 to 0.658. <\/p>\n\n\n\n
For the currencies market, the NZD plunged broadly today as weighed down by a \u2018double-trouble\u2019 scenario of RBNZ QE expansion and the return to a lockdown. The selloff in NZD is somewhat dragging down the AUD and the CAD too. On the contrary, the USD is staging a strong rebound, with help from much steeper than expected correction in Gold price. The strong rebound is 10-year yield also helps the EUR and GBP are so far resilient, with the latter supported by slightly better than expected June GDP figure. <\/p>\n\n\n\n
As for Gold, its\u2019 prices<\/a>\u202fhave seen an intense sell-off in the previous days, with gold suffering its most dramatic one-day fall since 2013. The gold price has hurtled from its record high of $2,075, as the U.S. equity markets resumed its rally on the back of more help from Washington. Generally, gold serves as a hedge against uncertainty. When traders invest in riskier assets, they tend to move their focus away from gold. However, during this coronavirus stock market rally, we have some evidence of a positive correlation between gold prices and the U.S. equity markets, meaning both moving towards the same direction.\u202f <\/p>\n\n\n\n The times below are GMT+3.<\/p>\n\n\n\n Today\u2019s GDP quarter-on-quarter was released today, it dropped 20.4%<\/a> and\u202fis slightly better than the 20.7% estimate of the Bank of England. In reality, today\u2019s data point to a very slow type of recovery which, in my view, resembles a \u2018Nike swoosh\u2019 type of recovery rather than the most optimistic V-type one. <\/p>\n\n\n\n Potential instruments to Trade: GBP Crosses.<\/p>\n\n\n\n Crude Oil Stocks Change\u202fin the United States averaged 0.10 BBL\/1Million from 1982 until 2020, reaching an all-time high of 19.25 BBL\/1Million in April of 2020 and a record low of -15.22 BBL\/1Million in January of 1999 – source: U.S. Energy Information Administration. <\/p>\n\n\n\n Potential instruments to Trade: Oil, USD Crosses.<\/p>\n\n\n\n US COVID -19 cases +40,522 (prev. +48,690) and deaths +565 (prev. +558), while a major newswire tally stated US cases increased by at least 52,751 to a total of 5.16mln on Tuesday and deaths rose by at least 1,413 to a total of 164.6k. California COVID-19 cases 1+2,500 (prev. +7,751), while a major newswires tally stated California cases increased by at least 11,448 on Tuesday and deaths rose by at least 176. Elsewhere, Texas cases +8,913 (prev. +4,455) and deaths +220 (prev. +31) (Newswires). <\/p>\n\n\n\n Join us at our next Market Analysis Webinar via Zoom<\/strong>. <\/p>\n\n\n\n To view our upcoming webinars, click here<\/a><\/strong>.<\/p>\n\n\n\n If you have any questions, please email our Education Centre<\/a>.<\/p>\n\n\n\n If you have any questions or require any assistance, please contact one of our support team members via our Live Chat or email support@errante.com<\/a>.<\/p>\n\n\n\n We are Errante. Trading made personal<\/strong>.<\/p>\n\n\n\n Errante is regulated by the Seychelles Financial Services Authority (FSA) under license number [SD038<\/a>].<\/p>\n\n\n\nToday’s High Impact Events<\/strong><\/h2>\n\n\n\n
09.00 (Post) \u2013 UK GDP<\/strong> <\/h3>\n\n\n\n
17.30 \u2013 EIA Crude Oil Stocks Change<\/strong> <\/h3>\n\n\n\n
Coronavirus Status Update<\/strong> <\/h3>\n\n\n\n