EUR 8.84 For Business Accounts Only

The Morning Track hard-eight

- The Morning Track – Hard Eight by Bob Savage
http://track.com/articles/the-morning-track-hard-eight/

Some put a lot of weight into numbers, others into the lunar and solar meanderings – if so the 8-8 date today and the lunar eclipse last night – both should make for an important trading day in markets. But like a craps table with no big rollers, today feels empty of that anxiety that usually precedes bigger moves. So it goes for volatility and volumes in the middle of August. We could make much about the North Korean threat to hurt the US a thousand-fold. We could also rail on about the slowdown in China trade and what it portends for the rest of the world and commodities. We could rattle warn on weaker Japan confidence in contrast to Australia and wonder if that all makes sense. We could warn on German trade and current account surpluses being unsustainable. Yes, the world has plenty of concerns and some were clearly out last night but the real movers of today are about option strikes settling in FX, the start of the August refunding in the US, the last dregs of
2Q earnings and the ongoing Trump tweet fest as he enjoys his none holiday. Markets are just not in any mood to bet big at a table where the dice look crooked. Much like yesterday, the GBP and AUD charts point lower and the USD/JPY chart the same while EUR remains on a rocket launch and the US bonds are waving a flag formation. Gold might be the key signal for risk purists. However, the money is on the steady drift down in the USD overnight matters and its back to the US dollar index for traders that want an early warning signal to wake up and watch their screens.