Crude oil rallies above $49.00 a barrel

FXStreet (Córdoba) – Crude oil prices rallied on Monday erasing previous August losses to close in positive territory for the month, having bounced from below $38.00 where it bottomed out last week.

WTI rose beyond $49.00 a barrel to hit its strongest level in a month. The rally was underpinned by a publication from the OPEC, expressing worries regarding the ongoing pressure on prices in the energy complex as a result of both speculation and an increase in crude supply glut.

Crude oil technical view

“Technically, the daily chart shows that the price has extended further above its 20 SMA, whilst the Momentum indicator heads higher almost vertically into overbought territory, and the RSI indicator also advances strongly around 63”, said Valeria Bednarik, chief analyst at FXStreet. “In the shorter term, the 4 hours chart shows that the technical indicators are beginning to get exhausted in extreme overbought levels, whilst the 20 SMA has crossed strongly higher above its 100 SMA, well below the current level”.

Some consolidation should be expected around the current levels, yet a break above the psychological 50.00 level should lead to further gains during the upcoming sessions, Bednarik added.

Support levels: 47.75 47.10 46.60. Resistance levels: 49.30 50.00 51.90.
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Dow posts biggest monthly loss since 2010

The Dow Jones Industrial Average ended August with the steepest monthly decline since 2010, after closing lower on Monday. The benchmark S&P 500 and Nasdaq ended August with the largest losses since 2012, after closing lower in a volatile session. Surging oil prices lifted energy stocks, but overall markets were weighed down by continued worries about China’s slowing economy and the uncertainty over the timing of a rate increase by the Federal Reserve. Fed policy makers have left the option of a September rate hike wide open. The Dow Jones Industrial Average

DJIA, -0.69%

lost 114.98 points, or 0.7%, to 16,528.03, and end August with a 6.6% loss, the largest percentage decline since May 2010. The S&P 500

SPX, -0.84%

closed 16.69 points, or 0.8% lower at 1,972.18, recording a 6.3% drop over the month, the steepest since May 2012. The Nasdaq Composite

COMP, -1.07%

ended the day down 51.82 points, or 1.1% at 4,776.51 and fell 6.9% over the month.

BJ’s Wholesale names retail sector veteran Christopher Baldwin as COO

BJ’s Wholesale Club Inc. said Monday it has appointed retail industry veteran Christopher Baldwin as chief operating officer, effective Sept. 8. Baldwin was most recently chief executive of Hess Retail Corporation, an operator of more than 1,300 fuel and convenience stores on the East Coast before it was sold to Marathon Petroleum Corp. He has worked stints at Kraft Foods, the Hershey Co. and Procter & Gamble. BJ’s is jointly owned by private-equity firms Leonard Green & Partners, CVC Capital Parnters and its management team.

EUR/JPY: bulls may struggle – FXStreet

FXStreet (Guatemala) – Valeria Bednarik, chief analyst at FXStreet explained the EUR/JPY managed to advance some, but remained confined within Friday’s range, closing the day pretty much flat around the 136.00 level.

Key Quotes:

“The pair maintains a tepid bearish tone in the short term, as the 1 hour chart shows that an early attempt to advance was rejected by a bearish 100 SMA, whilst the technical indicators head slightly lower below their mid-lines.”

“In the 4 hours chart however, the technical indicators head slightly higher above their mid-lines, although the moving averages remain horizontal and well above the current level, failing to offer clear directional clues. Should the price advance beyond 136.65, the upside is open towards the 137.70/80 strong static resistance area.”
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Walt Disney on course to lead Dow’s August losers

Walt Disney Co.’s stock

DIS, -0.42%

is on track to be the biggest monthly-decliner among Dow Jones Industrial Average

DJIA, -0.69%

after shedding 15% so far in August. That would be the worst monthly performance for the entertainment and media company’s shares since it lost about 16% in October 2008, at the height of the financial crisis. The stock had closed at an all-time high of $121.69 on Aug. 4, at which point it was up 29% year to date. It started selling off the next session, a long with other media stocks, amid investor concerns and uncertainty regarding the impact of the recent rapid growth of over-the-top TV services. The stock was down 0.7% in afternoon trade. It was still up 8% year to date. Meanwhile, the Dow had dropped 6.6% this month, and was down 7.3% year to date. The next biggest August decliner within the Dow is Pfizer Inc.’s stock

PFE, -1.35%

which has lost 11%, while Wal-Mart Stores Inc.

WMT, -0.25%

is a close third with a 10% loss in August.

AUD/USD recoveries may be short lived below 50DMA

FXStreet (Guatemala) – AUD/USD continues to head south after last night’s bearish open in Asia.

AUD/USD is, however, making a minor recovery from the lows at 0.7082 while the price in oil recovered in dramatic fashion. The real risk comes with the forthcoming RBA meeting tonight.

The general sentiment os for the RBA to stay on hold, and Valeria Bednarik, chief analyst at FXStreet explained that attention will likely focus on the following statement, “Any change in the latest wording from Governor Stevens, will be quickly priced in. In its latest statement, Stevens was less eager for a weaker Aussie, saying that the currency has done enough to help with the economic recovery.”AUD/USD remains bearish below 0.7396 50 DMA.

AUD/USD remains bearish below 50 DMA

Technically, hourly MACD is turning positive but rallies on AUD/USD could struggle on the 0.72 handle ahead of R2 and R3 (0.7250/0.7301). The pair remains with a bearish bias while changing hands below 0.7448 July 21 high and the 50 DMA at 0.7393.
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Why Credit Agricole sees another 5 cent drop in cable

Credit Agricole looks for further declines
Credit Agricole maintains a short GBP/USD position from 1.5450, with a stop at 1.5850, and a target 1.4850 (spot at 1.5350).
The GBP has been under pressure as of late mainly due to falling central bank rate expectations. Increased
China-related growth uncertainty and further weakening commodity price
developments have been driving investors’ UK inflation expectations

GBP/JPY losses almost 4% during August

FXStreet (Córdoba) – The pound is about to end August with a decline of around 770 pips or 3.85% against the yen. GBP/JPY rose during the previous four months but it continued to be unable to hold above 195.00 and dropped sharply during the last two weeks amid risk aversion, erasing 2015 gains.

Tension in financial markets boosted the yen across the board. The Japanese currencies and the euro were the best performers. GBP/JPY lost more than 700 pips in a few days and bottomed at 183.28 (August 24 low) but rebounded that same day.

Currently it trades around 186.00, near daily lows, about to post the lowest monthly close since April.

GBP/JPY key levels

To the upside, the immediate resistance to consider lies at 187.50 (last week highs) and above here at 190.85/95 and then 195.30. On the opposite direction, the area around 185.00 remains important. Last week it traded below but the pound was able to avoid a daily close lower than 185.00; if it happens the yen could extend gains.
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