Peter A Rosenstreich
Swissquote Bank Ltd
Risk appetite is slightly elevated, but volumes are low, after absorbing a slew of central bank policy meetings. Yesterday, Swiss National Banks, Bank of England and Bank of Japan all held policy unchanged. USD gains marginally on lower expectations for easing and uncertainty over US-China trade talks. CHF and JPY gained on safe-haven trade as rhetoric between US, Saudi and Iran ramped up. Gold prices inched higher on the general concern over middle east developments. Interesting Asians equity markets here higher with lone exceptions of Hang Seng were protests continued to weigh on investors sentiment. Crude prices continued to moderate following the 14th Sept attack on Saudi Arabia oil infrastructure. Information flows suggest the attack was most likely a one-off and full production will have resorted relatively quickly. While the exact timing of facilities repair might vary the general view is upside in crude is limited.
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Momentous House vote cannabis banking bill
A historic full vote in the U.S. House of Representatives that might changes the US cannabis industry forever will happen later this month. House Majority Leader Steny Hoyer, a Maryland Democrat, plans to put the SAFE Banking Act to a vote before the end of September. According to CNN “The SAFE Banking Act would provide protections for banks that work with marijuana companies since the substance is still illegal under federal law, despite several states having legalized medical or recreational marijuana”. In short, this bill will allow financial institutions to service cannabis-related companies and ancillary businesses without fear of federal prosecution. In March, the House Financial Services Committee advanced the bill by a decisive 45-15 vote. The full House bill approval is expected.
This report has been prepared by Swissquote Bank Ltd and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by Swissquote Bank Ltd personnel at any given time. Swissquote Bank Ltd is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.
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EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.