Daily Morning Report

Tuesday, August 14–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

Global stock markets were mostly higher overnight, on corrective rebounds from Monday’s selling pressure. U.S. stock indexes are also pointed toward firmer openings when the New York day session begins.

The currency markets have stabilized a bit today, following Monday’s and recent price action that have seen the world’s secondary currencies seriously depreciate against the U.S. dollar—especially the Turkish lira. Still, this matter is of serious concern to traders and investors as they worry about a contagion-type scenario that has gripped currency markets in recent history.

Continue Reading

Monday, August 13–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

It’s a risk-off day in the world marketplace to start the trading week Monday, as global stock markets were lower overnight. U.S. stock indexes are also pointed toward lower openings when the New York day session begins.

The stock and currency markets are roiled again today, with focus on a crumbling Turkish lira and that country’s financial troubles. The Lira was down as much as 10% today following sharp losses last week. Turkey’s government has so far done or said little to stem the drop in the lira.

The Indian rupee, South African rand and Mexican peso are included in those secondary currencies also getting hit hard today by an appreciating U.S. dollar. The U.S. dollar index rose to another 13-month high today, on safe-haven demand.

Continue Reading

The U.S. dollar index is a basket of six major currencies weighted against the greenback. The USDX soared to a 13-month high Friday, on safe-haven demand amid roiled currency markets—led by the tumbling Turkish lira. There are worries the depreciating lira could create a contagion in other world secondary currency markets. Stay tuned!

Friday, August 10–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

Global stock markets were mostly lower overnight, with European shares leading the way with solid losses. The currency markets are in keen focus late this week as the Russian ruble has sunk against the U.S. dollar and the Euro currency fell to a one-year low against the greenback. The Euro currency has taken a beating on the world foreign exchange market today, as the Euro zone has a heavier exposure to the Turkish lira, which has been pummeled recently on the foreign exchange market—losing around 15% of its value just this week. All of the above have pushed the U.S. dollar index to a 13-month high today, on safe-haven demand. The world marketplace is especially concerned about the Turkish lira’s situation expanding into a contagion of secondary world currencies. The Financial Times has reported the European Central Bank is examining several European banks’ exposure to the lira. U.S. stock indexes are also pointed toward lower openings when the New York day session begins.

The gold and silver market bulls are frustrated the that currency market turmoil has not at all benefitted the safe-haven metals—at least not yet.

Continue Reading

Thursday, August 9–Jim Wyckoff’s Morning Markets Report

OVERNIGHT DEVELOPMENTS

Global stock markets were mixed overnight. U.S. stock indexes are pointed toward firmer openings when the New York day session begins.

The Russian ruble hit a two-year low against the U.S. dollar overnight as the U.S. hit Russia with new economic sanctions. The Turkish lira fell to another record low against the greenback. The British pound is under pressure on Brexit uncertainties.

The most significant U.S. economic report so far this week is out this morning—the producer price index for July, which is expected to show a 0.2% rise from June. The consumer price index is due out Friday morning.

Continue Reading

See on the daily bar chart for December soft red winter wheat futures that prices are in a steep uptrend and have this week hit a 12-month high. A shorter global wheat crop this year, due to drought conditions in some major producing countries, is boosting wheat prices. The chart is solidly bullish, suggesting more upside price action in the near term. Stay tuned!