Daily Market Review August 17



Oil prices tumbled from its 5 week highs on Wednesday, as analysts remained pessimistic about a possible agreement among producers to balance oversupply. Besides, Brent crude was trading at $48.92, down by 37 cents from its last settlement. The Organization of the Petroleum Exporting Countries will renew talks on freezing oil supply while Saudi Arabia wishes for a hike in prices.

The Federal Reserve is optimistic about a rise in interest rate this year, which could happen as early as next month. Two Fed policy makers raised the bid on Tuesday by stating that economic conjunctures are favorable for a hike despite a significantly lower US Economic growth in the first half of 2016.

US Stocks eased from record levels amid the growing certainty for an interest hike this year. Constant expectations for a low interest rate made stocks rise to record levels this year only. However, today, the Dow Jones fell by 0.45 % while the Nasdaq Composite dropped by 0.66 %.

Technical Analysis:
Rising phenomenally yesterday as from 02.00 GMT from the 1.1180 level, the EURUSD currency pair made it to 1.1294 at 11.00 GMT. The uptrend did ,however, not last long as the currency pair then started fluctuating up and down to consolidate around 1.1278 as from 19.00 GMT through today. Having inched slightly higher at 00.00 GMT and 01.00 GMT, the pair then fell considerably as from 02.00 GMT to be at 1.1261 at 06.00 GMT. The currency pair might gain in strength today.
From 99.844 yesterday at 12.00 GMT, the USDJPY pair fluctuated up and down to reach 100.57 at 00.00 GMT today. From then, the pair kept the bullish pace and hit 100.95 at 05.00 GMT. Fluctuations were further noticed and the currency pair showed signs of a bearish stance but can definitely turn bullish as from 18.00 GMT today.
At 15.00 GMT yesterday rising from the 1.2966 level to hit 1.3050 at 17.00 GMT, the GBPUSD pair thereafter fluctuated around similar levels to be at 1.3049 at 00.00 GMT today. From then, the currency pair was seen rolling downhill to be at 1.3012 at 07.00 GMT. The Ichimoku indicator shows that the pair will trend similarly until 16.00 GMT, after which, a change in trends is anticipated. The currency pair might turn bearish.  
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