InvestMacro

By The Life Science Report

Source: Streetwise Reports   08/07/2019

Guardant Health Inc. reported strong growth for Q2/19 versus the same period last year and raised its full-year 2019 revenue guidance to $180–190 million.

Precision oncology company Guardant Health Inc. (GH:NASDAQ), which focuses on helping conquer cancer globally through use of its proprietary blood tests, vast data sets and advanced analytics, announced second quarter earnings yesterday afternoon for the period ending June 30, 2019.

In the report the firm highlighted that for Q2/19 it had achieved total revenue of $54.0 million, a 178% increase over the $19.4 million in Q2/18. Precision oncology revenue in the quarter increased 136%, driven by higher testing volume and increased revenue per test. The company reported 11,875 tests to clinical customers and 5,285 tests to biopharmaceutical customers in Q2/19, representing increases of 77% and 112%, respectively, over Q2/18. The firm also indicated that development services revenue increased 664% primarily from new 2019 projects related to companion diagnostic development and regulatory approval services for biopharmaceutical customers.

Gross profit was $37.1 million for Q2/19, an increase of $27.7 million from $9.4 million in Q2/18, with the gross margin improving to 69% in the quarter versus 49% in Q2/18.

Total operating expenses were $52.4 million for Q/19, as compared to $32.1 million in Q2/18, an increase of 63%, though the company recorded a smaller net loss of $11.6 million (-$0.13/share) in Q2/19 compared to a net loss of $21.6 million (-$1.75/share) in Q2/18. The company ended the second quarter with $822.9 million in cash, cash equivalents and marketable securities.

The company listed some achievements in the quarter, “Results presented at the American Society of Clinical Oncology (ASCO) Annual Meeting demonstrated LUNAR RUO assay’s ability to identify early-stage colorectal cancer patients with post-operative molecular residual disease who may benefit from adjuvant therapy and that Guardant remains on track to release a CLIA-validated version of the LUNAR assay for prospective clinical trials by the end of 2019…Announced plans to enroll first patient by Q2/19 in ECLIPSE, a prospective colorectal screening study…and the company completed an underwritten public offering raising $349.7 million in net proceeds.”

The company’s CEO Helmy Eltoukhy, PhD, stated, “During the quarter, the Guardant team made significant progress across multiple areas of our business in support of our mission to expand unprecedented access to cancer’s molecular information throughout all stages of the disease…We are especially encouraged by the strong adoption of Guardant360 and GuardantOMNI which we are seeing, even in the early phases of shifting the market to a blood-first paradigm for genomic testing.”

In the release the company raised its full-year 2019 guidance for total revenue to be in the range of $180–190 million, representing 99–110% growth over full-year 2018, compared to the firm’s previous full-year 2019 total revenue guidance of $145–150 million.

Guardant Health describes itself as a leading precision oncology company focused on helping conquer cancer globally through use of its proprietary blood tests, vast data sets and advanced analytics. The Guardant Health Oncology Platform leverages capabilities to drive commercial adoption, improve patient clinical outcomes and lower healthcare costs across all stages of the cancer care continuum. The firm has launched liquid biopsy-based Guardant360 and GuardantOMNI tests for advanced stage cancer patients, and in 2018, the company also launched the LUNAR assay for research use only, which is being used for applications related to guiding neoadjuvant or adjuvant decision-making and recurrence monitoring, and is also actively exploring the performance of the LUNAR assay in initial studies related to screening and early detection in asymptomatic individuals.

GH shares opened higher today on the news at $105.01 (+14.51, +$16.03%) over the prior day’s closing price of $90.50. Shares have traded between $98.51 to $111.69 today, reaching a 52-week intraday high. At present, shares are trading at $110.11 (+$19.61, +21.67%).

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Disclosure:
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

( Companies Mentioned: GH:NASDAQ,
)

By The Gold Report

Source: Streetwise Reports   08/07/2019

The latest drill results are delivered and interpreted in an iA Securities report.

In an Aug. 1 research note, analyst George Topping reported that iA Securities raised its target price on Wesdome Gold Mines Ltd. (WDO:TSX) to CA$7.50 per share from CA$7 because definition drilling in the Kiena project’s Deep A zone “continues to yield excellent results.” The current share price is around CA$7.08.

At the same time, however, iA Securities downgraded the gold company to Buy from Strong Buy “due to recent rapid share price appreciation,” wrote Topping.

The analyst reviewed the recently released drill results from Wesdome’s currently closed mine and mill project in Val d’Or, Quebec. Generally, Topping concluded, Kiena drilling continues to return highly economic widths and grades and remains open.” With its Eagle mine covering exploration costs, the gold company “is advancing Kiena to one of the cheapest, quickest restarts available in the industry.”

Topping added that iA Securities expects exploration to result in an estimated 1 million ounces of 8.5 g/t gold before Wesdome restarts Kiena, and that resource could support annual production of about 100,000 ounces, expanding to 170,000 ounces per year as exploration efforts progress.

As for the new results specifically, drilling in the Deep A zone, for one, showed continuation of mineralization for 700 meters (700m) along plunge.

Two, drilling in the zone returned high grades. Hole 6456, for example, returned “an impressive” 28 grams per ton (28 g/t) gold cut over 14m true width, Topping highlighted. Further, the average grade of the Deep A Zone intersections was 20 g/t cut over 4.3m true width.

These grades, 28 and 20 g/t, are 82% higher than the 11 g/t grade of the current Deep A zone resource. However, while the cited intercepts boast better grades, their widths are thinner than those in the zone overall, of 5–6m.

Three, drilling demonstrated that in the up-plunge extension of the A zone, what previously was interpreted to be a schist splitting into two zones now is thought to be a fold into the VC zone, Topping noted. This might be disappointing news to some, he wrote, “but in reality, it’s probably better to have the gold concentrated in one mineralized zone.” In the VC zone, hole 6523 hit 30 g/t over a 4.3m true width.

Topping indicated that the Canadian explorer and developer intends to release an updated resource estimate for the project this year and a preliminary economic assessment in early 2020. Of the roughly 50,000m planned for drilling in 2019, the company has completed about 30,000m.

Five rigs continue to drill on the property, one at 670m, the other four targeting infill and plunge extension at the 1,050m exploration ramp.

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Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Disclosures from iA Securities, Wesdome Gold Mines Ltd., Research Update, August 1, 2019

Conflicts of Interest: The research analyst and or associates who prepared this report are compensated based upon (among other factors) the overall profitability of iA Securities, which may include the profitability of investment banking and related services. In the normal course of its business, iA Securities may provide financial advisory services for the issuers mentioned in this report. iA Securities may buy from or sell to customers the securities of issuers mentioned in this report on a principal basis.

Analyst’s Certification: Each iA Securities research analyst whose name appears on the front page of this research report hereby certifies that (i) the recommendations and opinions expressed in the research report accurately reflect the research analyst’s personal views about the issuer and securities that are the subject of this report and all other companies and securities mentioned in this report that are covered by such research analyst and (ii) no part of the research analyst’s compensation was, is, or will be directly or indirectly, related to the specific recommendations or views expressed by such research analyst in this report.

Analyst Trading: iA Securities permits analysts to own and trade in the securities and or the derivatives of the issuer under their research coverage, subject to the following restrictions. No trades can be executed in anticipation of coverage for a period of 30 days prior to the issuance of the report and 5 days after the dissemination of the report to our clients. For a change in recommendation, no trading is allowed for a period of 24 hours after the dissemination of such information to our clients. A transaction against an analyst’s recommendation can only be executed for a reason unrelated to the outlook of the stock for the issuer and with the prior approval of the Director of Research and the Chief Compliance Officer.

Company Related Disclosures:
Wesdome Gold Mines Ltd.: The analyst has visited the issuer’s operations. No payment or reimbursement was received from the issuer for the associated travel costs.

( Companies Mentioned: WDO:TSX,
)

By The Gold Report

Source: Streetwise Reports   08/07/2019

The facility will support the company’s existing gold project there and its exploration efforts nearby.

Lion One Metals Ltd. (LIO:TSX.V; LOMLF:OTCQX) announced in a news release it began commissioning its newly constructed geochemical assay and metallurgical laboratory at its headquarters on the island of Viti Levu in Fiji. The facility is only 1 kilometer away from the Nadi International Airport.

The Canadian exploration and development company will use the lab in its exploration, resource definition and development activities at both its Tuvutu gold project and in its surrounding concessions in the Navilawa Caldera.

The center is equipped for conducting gold analysis through fire assays with atomic absorption spectrometry finish, geochemical testing and assaying of various other elements via inductively coupled plasma optical emission spectrometry and metallurgical optimization test work, including flotation and leaching. When fully operational, the lab will be able to process 400 samples a day.

Because Fiji lacks a commercial lab for geochemical and metallurgical analysis, Lion One intends to get its new facility internationally certified for commercial operations to serve other local industries.

Lion One is planning a grand opening celebration for its new lab.

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Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Lion One Metals. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

( Companies Mentioned: LIO:TSX.V; LOMLF:OTCQX,
)

By Orbex

Context

With the current escalation in trade tensions between the US and China, tonight’s Chinese trade balance data will take on extra importance.

Last week, President Trump took the market by surprise when he announced a fresh set of 10% tariffs to be applied to a further $300 billion of Chinese goods as of September 1st. China then responded by sharply devaluing the CNH. 

USDCNH traded above the 7 level for the first time since the Global Financial Crisis in 2008. The move was then met by the US Treasury dept issuing a statement labeling China as a “currency manipulator”. This is the first time since 1994 that the US has applied such a label to China and was met with fierce opposition from the Chinese.

What are the expectations?

Expectations are for the headline trade balance figure to print $44.23 billion over July. This would be down from the prior $50.98 billion. Such a reading likely reflects the expected downtick in Chinese exports to the US, following the imposition of fresh 25% tariffs in May.

Previous Releases

However, there could be room for an upside surprise. This is especially true given that US data reported the US trade deficit with China to have widened to a five-month high over the prior month.

Indeed, recent releases reflect a steady widening of the Chinese trade balance over the last three months. Data has shown a move from $13.69 billion in April to the current $50.98 billion.

So, with all that in mind, what impact could the data have?

Weak Reading

If the trade balance data comes in below expectations, the Chinese government will be quite concerned.Levels of trade are being closely watched in light of the escalation of tensions between the US and China.

A weak reading will, therefore, pull into question the resilience of the Chinese economy. Following a sharp devaluation of the yuan, which should translate into better figures going forward, the PBoC is unlikely to react to a weak reading. That being said, it will certainly be a red flag.

Strong Reading

A strong reading, on the other hand, might further provoke the ire of President Trump. While the remaining $300 billion of Chinese goods entering the US have now been tariffed at 10%, Trump could still raise this higher. Such a move would take a heavy toll on risk markets.

Technical Perspective

USDCNH has been back on the ascent today. While still sitting down from the recent 7.1390 highs printed on Monday, price has been trading higher. While above the 7 level, focus remains on further upside – However, given recent developments and the scale of the last move higher, a period of range-bound activity seems reasonable to expect.

By Orbex

By CentralBankNews.info

The central bank of the Philippines lowered the rate on its benchmark overnight reverse repurchase (RRP) facility by 25 basis points to 4.25 percent as it returned to the path of easing after pausing in June as “weaker global economic prospects continue to temper the inflation outlook.”

In May Bangko Sentral Ng Pilipinas (BSP) began to unwind last year’s rate hikes that totaled 175 basis points by cutting the rate by 25 points. But the central bank then took what it described as a “prudent pause” in June to asses the impact of the rate cut and its phased 2 percentage point reduction in reserve requirements that was completed in late July.

But data for the second quarter of this year showed a continued deceleration in economic growth to the slowest pace since the first quarter of 2015 while inflation for July slowed further to 2.4 percent from 2.7 percent in June.
“The Monetary Board’s decision is based on its assessment that price pressures have continued to ease since the previous meeting,” BSP said, adding the benign outlook for inflation provided room for a further cut to the rate “as a pre-emptive move against the risks associated with weakening global growth.”

BSP still expects inflation to settle within its target range of 3.0 percent, plus/minus 1 percentage point for 2019 to 2021 but said inflation expectations had moderated further and while the risks to its inflation outlook are broadly balanced for 2019 and 2020, they tilt to the downside for 2021.

In addition to lowering its benchmark rate, BSP also cut the rate on its overnight deposit and lending facilities to 3.75 percent and 4.75 percent, respectively.

The rate cut was widely expected after data earlier today showed the Philippines’ gross domestic product decelerated to a lower-than-expected 5.5 percent annual rate in the second quarter from 5.6 percent in the first quarter and 6.3 percent in the fourth quarter of last year.

In addition, the central bank’s governor, Benjamin Diokno, earlier this week told Bloomberg that he expects to cut the rate by another 50 basis points this year, with the timing of the cuts dependent on economic data.
Diokno also said he expects inflation to average 2.6 percent this year, down from an earlier forecast of 2.7 percent, and 2.9 percent in 2020, down from 3.0 percent previously expected.

In today’s statement, BSP said the prospects for global economic activity were likely to remain weak amid sustained trade tensions and going forward it would continue to monitor price and output to ensure its policy stance is “appropriately supporting of sustained non-inflationary economic growth over the medium term.”

Bangko Sentral Ng Pilipinas issued the following statement:

By Money Metals News Service

The Precious metals rally as the carnage in the global markets moves into high gear. As forecasted, the gold and silver prices have disconnected from the broader markets, IN A BIG WAY TODAY. While the Dow Jones Index was down more than 500 points, the gold price surged $30 higher and silver surpassed $17.

Are Gold and Silver finally in a new BULL MARKET? Well, certain indicators are giving them the green light. However, nothing goes up in a straight line, so we should be prepared for healthy corrections along with way. But, it’s nice to finally see that fundamentals do matter to traders as the precious metals are some of the best-performing assets in the market today.

As I was watching the silver price action during Asian trading last night, I knew something quite interesting was about to take place. A key level for silver is the 200 Month Moving Average, now at $16.82:

I mentioned this in my newest Youtube video, SILVER PRICE 2019: Key Levels For Continued Breakout. If you have not yet seen it, I highly recommend you do. So, for silver to continue on a new bullish trend, it would have to break through its 200 Month Moving Average (MMA) of $16.82, shown in the red line.

IMPORTANT NOTE: The chart above is by Stockcharts. They do not show intraday price moves for gold and silver. Stockcharts updates its commodity prices after the market has closed. This chart does not show the 50+ cent move in silver today.

During Asian trading last night, silver touched the $16.82 level, and then corrected lower. There is no coincidence that silver bounced off this level, the 200 MMA, last night:

When I checked the markets this morning, I saw that silver had finally broken through that critical $16.82 level. And when it did, silver experienced another mini-BREAKOUT:

As I have mentioned many times, when stocks and commodities break through certain key levels, we get a confluence of TRADERS, HEDGE FUNDS, INVESTORS, and INSTITUTIONS all coming in to drive the price higher or lower. In silver’s example above, it was higher.

So, we have BREAKOUTS occurring during the intraday markets as well as longer-term setups in the Monthly charts.

That being said, gold and silver have gone up considerably in the past weeks and could experience a correction before heading higher. And, if we consider that the COT Report structure shows extremely high levels of Commercial Net Short Positions in both metals, usually a correction will occur.

BUT… what if this time is a bit different?? Could we see the silver price head even higher, while the Commercials liquidate their short positions?? Possibly, but we will have to wait and see how the market plays out over the next few weeks.

However, I knew at some point that gold and especially silver were going to disconnect from the broader markets in a big way due to the fundamental and technical setup in these charts below:

I explained this chart in my video linked above, showing how much higher the broader markets and Amazon were above their 200 MMA’s compared to gold and silver. At the time of this chart, silver was below the 200 MA, but now it is finally above it. Regardless, you don’t have to be a SAVVY TRADER to understand that the broader markets and tech stocks are seriously over-valued, if we measure them by the 200 MMA. However, gold and silver are closer to their 200 MMA and are considerably undervalued.

Furthermore, I also stated in past articles and interviews that the precious metals would also BREAK away from the cost of production fundamental. We are seeing that today as the oil price is down more than $2. The oil price has been the primary driver of the gold and silver prices for decades. But, that will change going forward as the falling U.S. and global oil production will destroy the massive amount of debt, derivatives, and leverage in the system.

The Money Metals News Service provides market news and crisp commentary for investors following the precious metals markets.

By CentralBankNews.info

Serbia’s central bank trimmed its policy rate for the second month in a row to provide additional support to the domestic economy while inflation is firmly under control at a time of slower global trade and growth that is leading to easier monetary policy by leading central banks.

The National Bank of Serbia (NBS) cut its policy rate by another 25 basis points to 2.50 percent, a new low since the central bank adopted inflation targeting as its monetary strategy in January 2009.

NBS has now lowered its main rate by 50 basis points this year, with the cut last month the first since April 2018.
“By cutting the rate to a new lowest level in the inflation targeting regime, the NBS provides addition support to credit and economic growth,” the central bank said, adding the decision was made in the context of the new August inflation report, which will be presented Aug. 14.

Inflation is forecast to trend within the bound’s of NBS’ target tolerance band of 3.0 percent, plus/minus 1.5 percentage points over the next two years, most probably in the lower part of the band.

Serbia’s inflation rate decelerated to 1.5 percent in June from 2.2 percent in May and in June the NBS also forecast that inflation would move within the lower part of its target range this year and next year.

In addition to low inflation, the NBS said its decision was made in the light of international developments, mainly the slowdown in global trade and growth that is being accompanied by “increasingly clear signals hinting at monetary policy accommodation, followed by actual measures by leading central banks,” which should help maintain favorable global financial conditions longer than initially expected and thus have a positive impact on capital flows to emerging economies.

However, NBS again said there were still factors warranting caution in monetary policy, pointing to global trade tensions and the possibility that decisions by leading central banks may deviate from market expectations as well as movements in oil prices and other commodities.

Serbia’s economy slowed in the first quarter of this year to 2.5 percent annual growth from 3.4 percent in the previous quarter but NBS expects growth this year to be led by domestic demand, i.e. investment and consumption, foreign direct investment and exports, that will continue to narrow external imbalances.

After Serbia’s economy took a hit from drought in 2017, growth rebounded to 4.3 percent in 2018 – its fastest pace in 10 years – and fiscal discipline has now taken root with the general government budget in surplus for two consecutive years and public debt falling by about 15 percent of gross domestic product since 2017.

Last month the International Monetary Fund said Serbia’s near-term outlook remained positive, with growth this year seen at 3.5 percent, and activity improving in the second half due to strong foreign direct investment, continued public investment and an assumed recovery in trading partners.

The IMF forecast average inflation this year of 2.4 percent, up from 2.1 percent in 2018.

The National Bank of Serbia issued the following statement:

By IFCMarkets

Increased haven demand bullish for XAUUSD

Yuan weakening boosted heaven demand. Will the gold price continue advancing?

Three days ago on Monday yuan breached 7-to-dollar mark to the lowest level in 11 years, triggering a selloff in global financial markets and flight to haven assets. The yuan fell after president Trump announced about 10% tariffs on $300 billion worth of Chinese goods starting from September 1. The yuan has tumbled as much as 2.7% against the dollar over the past three days since the announcement. China’s central bank stabilized the yuan with a fixing Tuesday at 6.9683 yuan per dollar, which brought some calm to financial markets. The US-China trade dispute is the main drag on global economy with the uncertainty driving the demand for haven assets including gold. Recent data point to cooling of US economy: the services sector expansion slowed in July as the ISM Services Composite Index declined to 53.7 from 55.1 in previous month, and job vacancies fell slightly to 7.35 million in June from 7.38 million according to the US Labor Department’s JOLTS report Tuesday. As Beijing halted purchases of US agricultural products after US threat of new tariffs White House economic adviser, Larry Kudlow, said Trump still wants a trade deal and the U.S. plans to host Chinese negotiators in September, but China has to make concessions.

On the daily timeframe the XAUUSD:D1 is rising after trading in a range since end of June.

• The Parabolic indicator has formed a buy signal.
• The Donchian channel indicates upward bias: it has widened up.
• The MACD indicator gives a bullish signal: it is above the signal line and the gap is widening.
• The RSI oscillator is rising but has not reached the overbought zone yet.

We believe the bullish momentum will continue after the price breaches above the upper boundary of Donchian channel at 1510.26. This level can be used as an entry point for placing a pending order to buy. The stop loss can be placed below the last fractal low at 1400.36. After placing the order, the stop loss is to be moved every day to the next fractal low, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level (1400.36) without reaching the order (1510.26), we recommend cancelling the order: the market has undergone internal changes which were not taken into account.

Technical Analysis Summary

Market Analysis provided by IFCMarkets

By Orbex

The US President Donald Trump shifted gears as he hit out on the Federal Reserve Bank. His comments came on the back of various central banks including New Zealand that cut interest rates. Accusing the Fed of incompetence, Trump said that the Fed was refusing to admit its mistake of raising interest rates too quickly. Equity markets continued to come under stress.

Euro Unmoved by German Industrial Production Data

The euro currency maintained its bullish bias on Wednesday. Germany’s industrial production figures for July showed a 1.5% decline on the month. This led the industrial production to fall 5.2% on the year. The data spiked concerns that Europe’s leading economy could be slipping into a recession.

EURUSD Back to Range Trading

The currency pair, having cleared the 1.1185 handle is seen trading within the established range of 1.1250. We expect this to continue in the short term. A strong breakout from either level will establish further direction. The upside bias is more likely, as the resistance area of 1.1340 could be the next upside target.

Oil Drops on Crude Oil Inventory Buildup

Crude oil prices continued their decline on Wednesday. The Energy Information Administration reported a surprise build up in oil inventories. US Crude oil stockpiles rose 2.4 million barrels in the week ending August 2^nd. This was in contrast to the expectations of a drawdown in inventory. The report came after the API showed a weekly decline in oil inventories of 3.4 million barrels.

Oil Breaks Below 51.70. Is 50 the Next Target?

The surprise build-up in the crude oil inventory sent oil prices slower by Wednesday’s close. Price fell below the 51.70 handle which was the initial downside target. However, with price now consolidating near this level, there is scope for oil prices to test the psychological level of 50 a barrel.

Gold Gains Amid Uncertainty

While there were signs of a recovery following the sell-off in the equity markets, gold prices were steady. The precious metal tested 1500 marking a fresh six-year high in the commodity. However, at the moment, the gains look to be overstretched. With the US and China trade war narrative currently fading, focus could once again shift to the economic data.

Gold Prices Could Pull Back off the 1500 Handle

The gains in the precious metal are likely to see a modest pullback in the near term. However, the bias remains to the upside. The support level is seen at 1445–1452 region which could be tested in the near term. Establishing support at this level will keep gold poised to make further gains. However, the 1500 handle could prove to be elusive to break past.

By Orbex

By Orbex

It’s been a frustrating time for oil traders recently. Despite the US crude industry having been in drawdown for seven straight weeks, due to other issues, crude has been unable to rally and has moved steadily lower.

The API reported a further drawdown in its report yesterday. However, crude prices plummeted lower again today as the EIA reported a build.

Crude Inventories Rise

The EIA’s latest report covering the week ending August 2^nd showed that US crude stores rose by 2.39 million barrels. This was in stark contrast to the forecasted 2.85 million barrel drawdown the market was looking for.

Furthermore, this decline, which comes on the back of the prior week’s 8.5 million barrel draw, puts an end to the near two-month drawdown in crude stores.

Trade Tensions Weighing

This data comes at a difficult time for oil bulls. Oil prices have been under heavy pressure over the last week as a fresh escalation in trade tensions between the US and China has rocked the market.

US and Chinese delegates met in Shanghai last week as trade talks between the two countries resumed following their earlier collapse in May. While expectations for the meeting were low, the market was relatively buoyed by the fact that at least the two sides were once again in talks.

However, on the back of the meetings, which seemed to have ended without any progress, Trump then shocked the markets by announcing a fresh set of 10% tariffs on a further $300 billion of Chinese goods due to start from September 1^st. The move announced via the President’s Twitter caught the market totally off guard and sent oil and equities prices hurtling lower.

US Labels China A Currency Manipulator

Tensions continued to flare this week. The Chinese yuan was sharply devalued in early trading on Monday. This sent USDCNH soaring over 7 for the first time since the 2008 Global Financial Crisis.

The move was met with swift action by the US. The Treasury Dept released a statement on Tuesdaylabeling China a “currency manipulator” for the first time since 1994. The PBOC subsequently denied the claims, releasing a statement of its own.

Trade Talks Under Threat

These developments are a worrying sign. In fact, they are fuelling concerns that the next round of US/China trade talks, due to be held in September, will be abandoned.

Earlier in the year, the IMF warned about the damaging impact of such aggressive trade policies. However, it seems the US has chosen to ignore these warnings. The markets now wait tentatively to find out what the next steps will be.

Any further retaliation from China could see the US increasing the new 10% tariffs to 25%. Needless to say, this would surely be a devastating blow to the Chinese economy.

Technical Perspective

The collapse in crude prices over the last week has seen prices moving below some key levels. The 54.90 level which had been supported over July has now given way. Price is currently testing a major 2019 support at the 50.80 level, which is holding for now. This is the last key level ahead of a rundown to the current year to date lows around 44.43, with the 2018 lows of 42.40 sitting just below. For now, focus remains on further downside.

By Orbex