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The Non-Farm Employment Change indicator was reported at 1371K, the Unemployment Rate dropped from 10.2% to 8.4% in August, while the Average Hourly Earnings rose by 0.4%, beating the 0.0% estimate.
The USD was somehow expected to appreciate versus its rivals after the good economic figures. It remains to see how the USDX will react during the day, a further growth followed by the breakout of 93.24 could announce a broader upside movement and EUR/USD correction.
USDX tries to continue its rebound but is facing a tough resistance at the minor downtrend line, Falling Wedges resistance. Still, the index shows some positive signs after closing above the upside 50% Fibonacci line.
Friday‘s false breakout with great separation above the minor downtrend line signals that the sellers are still in control. Only a jump and close above 93.24 Friday’s high will really confirm a short term reversal.
You should be careful because another false breakout today followed by a drop below 92.55 static support will announce a deeper drop.
EUR/USD stays within the minor ascending channel, so it maintains its bullish outlook. The price has registered only two false breakdowns with great separation below 1.18 psychological level signaling strong bullish pressure around this downside obstacle.
Yet, the pair could still come back to pressure the 1.18 level, that‘s why I’ve said that the next days could be crucial. A valid breakdown from the up channel and below 1.18 could suggest selling, while another bullish momentum followed by a valid breakout above the second warning line (WL2) will bring a long opportunity.
A bearish reversal will be confirmed by a drop and close below 1.17 psychological level. Stochastic and RSI show a bearish divergence on the Daily chart but we need another lower low, drop below 1.1781 Fridays low to confirm a further drop in the short term.
The 250% Fibonacci line represents strong dynamic support. Today, the greenback could take the lead again as the German Industrial Production indicator has increased only by 1.2% in July, less versus 4.5% estimate.
Shinzo Abe, the longest-serving Japanese Prime Minister in history, has suddenly resigned on August 28, citing health reasons. He will remain in his post until a successor is chosen. Mr Abe said he would still participate in the parliamentary vote and would not completely withdraw from politics.To get more news about WikiFX, you can visit wikifx official website.
On September 26, 2012, Shinzo Abe was elected as the president of the Liberal Democratic Party and won the general election later on December 26 in the year. After he became the president, the Japanese yen shrank from the peak of 77.13, while after he became the Prime Minister, the country‘s currency kept slipping till June, 2015 and bottomed at 125.86. The reason is the well-known 'Abenomics', which aimed to stimulate Japan’s exports and prevent the worsening deflation by exerting a big depreciation in the value of the currency.
Japan‘s economy once recovered because of the Abenomics, and investors even regained confidence amid the successful Olympic bid. However, no one has ever expected that the outbreak of COVID-19 would completely destroyed the Abenomics and made Abe drained and resign from his post. After Abe announced his resignation, forex traders bought the yen aggressively as no one could anticipated who’s his successor and whether the following policy would be in line with Abes.
On the other hand, Japan‘s stock markets went into a tailspin on the news of August 28. With the unwinding of carry trade and the rising risk aversion, the yen appeared to be strong and popular again. Under the Japan’s uncertain political situation coupled with the continued weakness of the U.S. dollar, the yen has the opportunity to maintain its strength in the short term and challenge the two major resistance levels of 104.19 and 101.48.
MSCI's broadest index of Asia-Pacific shares outside Japan MIAPJ0000PUS rose 0.5% to reach its highest since March 2018, extending a 2.8% gain last week.
Chinese blue chips CSI300 firmed 0.7% to reach levels not seen since mid-2015. Surveys showed Chinese manufacturing activity edged back a tick to 51.0 in July, but services jumping a full point to 55.2 in a hopeful sign of reviving consumer demand. futures for the S&P 500 ESc1 climbed another 0.5%, while EUROSTOXX 50 futures STXEc1 added 1%.
Tokyo's Nikkei N225 rallied 1.9% aided by news Warren Buffett's Berkshire Hathaway (NYSE: BRKa ) BRKa.N had bought more than 5% stakes in each of the five leading Japanese trading companies. Nikkei had dipped on Friday after Prime Minister Shinzo Abe's resignation stirred doubts about future fiscal and monetary stimulus policies.
Those concerns were eased somewhat by news Chief Cabinet Secretary Yoshihide Suga, and a close ally of Abe, would join the race to succeed his boss. A slimmed-down leadership contest is likely around Sept. 13 to 15. was now on a host of Federal Reserve officials that are set to speak this week, kicking off with Vice Chair Richard Clarida later Monday as they put more flesh on the bank's new policy framework.
3D rendering is a two-dimensional representation of the 3D wireframe model and has grown considerably due to the growing applications across several industries. It is also used in the construction industry, where a 3D model of architecture or an interior design plan is provided to the consumers. The 3D rendering services are rapidly gaining traction as a result of several benefits like cost-effective pricing, superior quality, availability of software & infrastructure, etc. In recent years, 3D rendering has become one of the essential tools for designers. The digital advancement in the construction sector has resulted in increased adoption of 3D rendering services. 3D interior visualizations aid the designers in providing essential presentations to their clients.
The 3D rendering market also entails significant demand for customized solutions.Thus, vendors are offering more innovative solutions to help companies further reinforce their positions in the overall market.
However, the lack of skilled professionals and a general lack of knowledge is hindering the growth of the market.The latest trend of cloud deployment and services is evaluated to be beneficial for the market growth.
The geographical segmentation of the global 3D rendering services market includes the market analysis of Europe, North America, Asia Pacific, and the rest of the world. As of 2019, the North American market region dominates the market with a revenue share of 37.47%. The revenue share aspect of the market region is credited to the flourishing construction sector and the rising utilization of 3D rendering services for marketing activities in the construction sector.
Some of the renowned companies operating in the market are Adobe Inc, Autodesk Inc, Flatworld Solutions Pvt Ltd, Corel Corporation, 3D Animation Services, etc.
State Auto Financial Corporation, headquartered in Columbus, Ohio, is a super regional property and casualty insurance holding company. STFC stock is traded on the NASDAQ Global Select Market, which represents the top fourth of all NASDAQ listed companies.
The insurance subsidiaries of State Auto Financial Corporation are part of the State Auto Group. The State Auto Group markets its insurance products throughout the United States, through independent insurance agencies, which include retail agencies and wholesale brokers. The State Auto Group is rated A- (Excellent) by the A.M. Best Company and includes State Automobile Mutual, State Auto Property & Casualty, State Auto Ohio, State Auto Wisconsin, Milbank, Meridian Security, Patrons Mutual, Rockhill Insurance, Plaza Insurance, American Compensation and Bloomington Compensation
China’s recovery had been gaining momentum after the pandemic paralysed huge swathes of the economy as pent-up demand, government stimulus and surprisingly resilient exports revived activity.
However, July data from the National Bureau of Statistics on Friday showed weaker-than-expected year-on-year industrial output growth and retail sales extending declines into a seventh straight month. That was slightly offset by firmer property investment, which showed recent stimulus was supporting construction.
Some analysts attributed the loss of momentum in the economy to the torrential rains that have flooded Southern China since June and several fresh COVID-19 outbreaks that led to partial lockdowns.
“Although there could be a modest rebound in some investment activities if the floods subside in coming months, we expect sequential recovery momentum to get weaker in H2,” Nomura analysts said in a note, citing factors such as receding pent-up demand, diminished chances of more policy easing and rising U.S.-China tensions.
Industrial output grew 4.8% in July from a year earlier, in line with June’s growth but less than a forecast 5.1% rise.
Retail sales dropped 1.1% on year, missing predictions for a 0.1% rise and following June’s 1.8% fall.The decline in retail sales was broad based with garments, cosmetics, home appliances and furniture all worsening from June.A key exception was auto sales, which surged 12.3%, turning around from a 8.2% fall in June.
“Despite narrowing declines in investment, consumption remained weak, highlighting the lasting economic shock from the coronavirus pandemic,” said Zhang Yi, chief economist at Zhonghai Shengrong Capital Management.
“Given we are likely to see a resurgence of COVID in the autumn and winter, it is not recommended that monetary policy be tightened too prematurely and fiscal policy stay insufficient.”
But, even while China’s rise is largely perceived as positive in emerging economies, there are pockets of discontent. First, even in the nations that welcome China’s economic growth, few feel similarly about its growing military might. Rather, most tend to view China’s growing military as something bad for their own countries. Second, China’s neighbors generally take a much more negative stance toward China’s military and economic growth than other countries surveyed. For example, in the Asia-Pacific region, more tend to see investment from China as a potential liability, giving Beijing too much influence over their economies. These same countries are also more likely than others to see U.S. economic influence in their country positively. And, when it comes to developed countries, views of China are much more mixed to negative. Generally, countries with stronger human rights records and lower levels of corruption tend to be much less keen on China.
When it comes to comparisons with the United States, generally speaking, China’s economic influence is seen in similar or even slightly more positive terms. Most publics are about equally sanguine about the state of their country’s bilateral economic relations with China and the U.S. Majorities in most nations also say both the U.S. and China have a great deal or a fair amount of influence on their country’s economic conditions. But, when rating that influence, more people say China’s is positive than say the same of the U.S.
Throughout this report, there are times when we will report 34-country medians and times when we will report 16-, 17- or 18-country medians. This year’s annual survey focused heavily on European public opinion three decades after the fall of communism. Because European respondents were already being asked so many region-specific questions, we did not ask them the entire suite of questions about China and the global balance of power that were asked in other regions.
Throughout the report, data is reported for all countries where the question was asked, so any differences in the number of countries presented in a given section stems from some publics not being asked certain questions.
More still name the U.S. as the foremost economic power than say the same of China. For example, across every country surveyed in Latin America and sub-Saharan Africa, as well as many in the Asia-Pacific, people name the U.S. as the top economy. In the U.S., by a 50%-32% margin, Americans name their own country as the leading economic power, though there are stark partisan differences in these evaluations, with Republicans and Republican-leaning independents being more likely to name the U.S. than Democrats.
EUR/USD has repeatedly fallen back from the 1.1900 area, after trying
to rally to higher levels. But, the pair hasn't given back much on a
quarterly basis, even after the recent sharp pullback in the US dollar -
after FOMC minutes triggered more concerns about the US job-growth and a
less dovish policy than many traders anticipated.To get more news about
https://www.wikifx.com, you can visit wikifx official website.
When we look at the EUR/USD from a multi-decade perspective, the pair
has much upside potential above the 1.1600 area - a key resistance
formed by the line joining yearly highs in 2008 and 2014, as well as
touching 2018 highs.
Also, Bloomberg report suggests the hedge funds and institutional buyers
are adding to their long bets anticipating a move beyond 1.19 to 1.2500
- 2018 high.
Helping the strength in the EUR/USD will be the hedging requirements
from dollar investors who sense more trouble ahead after the latest US
job claim numbers, which unexpectedly edged up above a million. The weak
data has checked the US dollar bounce post the FOMC disappointment for
pro-risk currencies.
The dollar has declined in value since the Fed started its expansionary approach to revive a coronavirus-stricken economy.
Less favorable jobless claims and worries about business confidence
means the central bank has to spend more to revive the economy. Such a
dovish approach is fundamentally a bearish act for the dollar - as the
funding for the stimulus is by selling more and more Treasury notes and
bonds, affecting their yield and the greenback.
Strengthening of the euro at the expense of the US dollar might also
reshuffle the pecking order in the world currency market, which
considered the dollar as a safe-haven along with Japanese Yen and Swiss
Franc.
· ECB Intervention
If the euro attracts more fund flows away from the dollar, ECB might
have difficulty in meeting its inflation target. Chances of ECB
intervention means traders might consider a move beyond 2008 high to be
of less probability.
The ECB July meeting minutes are in favor of the EUR/USD bullish
sentiments as 1.35 trillion-euro quantitative easing program has less
support for its full utilization; this suggests ECB actions will have
less euro value dilution in the near future.If we look at the other side
of the story, bears will point out the continuous fall of the pair for
the last two decades as a strong reason to be not optimistic on the
euro. The 2008 high of 1.5950 seems far away from the pair's current
price level. The highest EUR/USD price in 2008 starts a resistance line
passing through 1.3800 in 2014 September and January 2018 level of
1.2500. This declining price trend is bearish, and the recent months'
strength wouldn't deter a long-term EUR/USD bear.
Also, even though institutions are bullish on the euro; the Japanese
yen and the Swiss franc are enjoying much higher demand as a dollar
hedge according to Bloomberg data.
Ive shared my opinion about this U.S. presidential election in an investment speech: Oil prices may be punished once the Democratic Party is again in government. This is because firstly this Party tends to achieve economic development by low oil prices; secondly, high oil prices will benefit Russia's economy but the relation between the Party and Russia had always been poor. One of the historic slumps in oil happened when Democrat Obama announced sanctions against Russia in 2014, with the prices tumbling to $26 from the high level of $107.56.
The Democratic Party will probably rejoin to the Iran nuclear agreement once return to power, greatly easing the geopolitical tension in the Middle East. To this end, I suppose that the triumph of the Democratic candidate Bidden will trigger significant correction in oil prices.
From a general technical standpoint, over the long run, USD/ZAR has
primarily been in a substantial uptrend for several years now. We can
see multiple extended uptrends across bigger time-frames from the daily
to the monthly chart. Historically, since South Africa is, for the most
part, a developing country, any dominant currency paired against it like
the dollar usually tends to have the upper hand. Many exotic currencies
exhibit these traits. While there have been dips to the other side,
South Africa's economic problems have made its currency gradually
weaker. On the 6th of April 2020, the USD/ZAR hit an all-time high price
of R19.35, mainly due to the global Covid-19 pandemic and Moody's
downgrade ratings around that time.To get more news about https://www.wikifx.com, you can visit wikifx official website.
Since then, South Africa's currency has gotten marginally better by a
few rands, though the market hasn't forgotten this price level and may
look at passing significant milestones to get to it again potentially.
The first of those milestones would be the R17.79 price level. There was
a pullback that lasted for a few months after the record high. After
that, we started trending higher from the 22nd of July at R16.34 up to
R17.79. So, we could treat R17.79 as a potential supply zone while
R16.35 as a possible demand zone.
From the fundamental perspective, we can look at the employment figures
and the interest rates of each respective currency. The US seems to be
winning here compared to South Africa. The US economy added 1763 jobs in
July according to their Non-Farm Payrolls release on the 7th of August
2020. On the other hand, South Africa's figures are quite gloomy. For
their Q1 report in June, the unemployment percentage reached an
unprecedented all-time high of 30.10%, a 1% jump from the previous
figure of 29.1%. A slightly better jobs figure for America should give
investors and traders more impetus to have a bullish outlook on the
greenback against ZAR.
For interest rates, the Fed has firmly
remained at 0.25% for a few of their last interest rate decisions. On
the 15th of March 2020, the Fed decreased it from 1.75% to 0.25%, which
is the first time since the 2008 financial crisis it has been this low.
On the other hand, the SARB (South African Reserve Bank) has also done
something similar as they've decreased their interest rates since the
pandemic gained more worldwide attention. These efforts are partly
measures to boost both respective economies during the global pandemic
crisis. We can expect both interest rates to remain more or less where
they are in the near future since it will take quite a long time for
most of the world to recover. So we can't take advantage of any
disparities with these rates for now.
So, overall, no real short-term trading opportunities exist for
USD/ZAR. We can only look at the R17.79 level and see what the market
does should it get there. However, the easiest bias one can have with
this pair is bullish for the long term.