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4 Global Market Updates- 5 August, 2022

by Elena Martin   ·  August 5, 2022   ·  

4 Global Market Updates- 5 August, 2022

by Elena Martin   ·  August 5, 2022   ·  
In this article, we have covered the highlights of global market news about the Gold Price Future, AUD/USD, USD/JPY and Futures for crude oil.
Future increases for gold are anticipated in the foreseeable future.

According to CME Group’s flash statistics for the gold futures markets, open interest increased by around 2.5K contracts on Thursday after four days of daily declines. However, volume decreased for the second session in a straight, but only by 870 contracts this time.

On Thursday, gold prices continued to rise as open interest increased. In contrast, the precious metal was still on course to return to the critical level of $1,800 per ounce troy.

As traders exhibit the normal concern ahead of the important US employment data on Friday, the price of gold (XAU/USD) seesaws near the monthly peak. Despite this, the price of yellow metal fluctuates between $1,788 and $1,791 as of the morning of the press in Europe.

The market’s conflicting fears about the global recession and the most recent geopolitical stories affecting Taiwan, in addition to the pre-NFP caution, further contribute to the XAU/lethargic USD’s movement. It’s important to note that the options market sends conflicting signals and presents difficulties for gold purchasers.

AUD/USD has now entered a period of consolidation – UOB

In the last day, we anticipated that the Australian dollar will “move sideways within a band of 0.6920/0.6970.” The AUD then moved in a wider range (0.6936/0.6988) than anticipated. We anticipate that the Australian dollar will move today between 0.6930 and 0.6985 since the price actions still seem to be in a consolidation phase.

Within the next three weeks: “Two days ago (03 August, spot at 0.6980), we maintained the position that the Australian dollar is anticipated to trade with a negative bias near 0.6840. Since that time, AUD has been unable to go downward at all. The negative trend has stopped, even if our “strong resistance” level at 0.6990 (high of 0.6988 yesterday) is not breached. The Australian dollar is probably going to stabilise from here and move between 0.6885 and 0.7035.”

As traders wait for the NFP, USD/JPY maintains firmly above the 133.00 line, with any gains restricted.

On Friday, the USD/JPY pair draws modest buying at the mid-132.00s and partially undoes the fall from the previous day. The currency pair continues a buy tone during the early European session and is now trading just a few pip below the day’s high, in the vicinity of 133.25.

The safe-haven Japanese yen is under pressure due to a significant difference in the monetary policy stances taken by the Federal Reserve and the Bank of Japan, as well as a positive risk tone. In addition to this, a little increase in US dollar demand proves to be a crucial component supporting the USD/JPY pair.

It is important to bear in mind that the BoJ has frequently reaffirmed its commitment to maintaining its ultra-easy policy settings and its goal of keeping the yield on the 10-year Japanese government bond near 0%. In contrast, a number of Fed representatives said this week that higher interest rates are on the way.

However, the notion of a higher rate rise at the September FOMC meeting has come under fire from investors. This is preventing the USD bulls from making aggressive wagers and limiting any sizeable gains for the USD/JPY pair, combined with the recent decline in US Treasury bond rates.


Additionally, traders are hesitant and want to remain stationary before the eagerly anticipated US monthly employment data, which is scheduled to be released later during the early North American session. The widely publicised NFP data will affect USD price dynamics and give the USD/JPY pair a new sense of direction.

Futures for crude oil: Near-term rebound seems expected

According to advanced data from CME Group, open interest in crude oil futures markets decreased by only 736 contracts on Thursday, partly reversing the previous daily gain. Following suit, volume significantly decreased by around 206.6K contracts.

On Thursday, WTI prices fell beyond the $90.00 per barrel threshold, reaching 6-month lows. A further loss from present levels was first ruled out by the sharp pullback’s declining open interest and volume, which opened the door for a possible comeback in the very near future. The 200-day SMA, which is now sitting at $95.21, will be the goal of the first comeback.

Please click here for the Market News Updates from 4 Aug, 2022.

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