The broader financial markets mood has improved overnight; Crude oil rebounds; Gold, Silver, Platinum, and Copper rallied; Market wrap

 Equity indices and G10 currencies rebound on Wednesday, and the dollar index (KTM: USDX) fell, and US 10TY remained at 1.47. Most of the G10 currencies are in green except JPY. The antipodeans rallied strongly with AUD 0.70% and NZD 0.50%. 

Significant moves: 

We saw a strong response to HK extradition bill. Hong Kong leader Carrie Lam to announce the formal withdrawal of the extradition bill. The USD down on the news and the Hong Kong index rallied more than 3.0%

The GBP was the most significant mover overnight with more than a percent gains across the board. Mainly the cable settled above 1.2250, and the GBPJPY ran through the target we set yesterday. Now focus shifts to the next resistance level located at 130.30, a decisive break out above could confirm upward sentiment. Flipside, wait for a retracement towards support levels.

 

The common currency finally pauses the six-day falling streak on Tuesday, and a follow up buying on Wednesday raises hope of a short-term bottom.

 

Chart of the day: USDJPY

What’s on today?

Australia July Trade Balance, US ADP employment and US non-Manufacturing ISM are the highlights.

It is important to always keep in mind the risks involved in trading with leveraged instruments.

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