INDIA: RBI Sees INR Under Speculative Attack, Will Intervene Further: BBG
Citing a person familiar with the matter, Bloomberg report that the RBI considers recent weakness in the rupee as driven by speculative attacks and is prepared to continue its market intervention until the currency settles at a stronger level. Highlights from the piece below:
- “The RBI was alarmed to see the rupee nearing the 89 a dollar level in recent trading sessions”
- “The central bank is unwilling to let the currency breach its record low of 88.8050 a dollar level anytime soon”
- "The RBI will continue to intervene until it is satisfied that speculative positions are broken"
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SOFR OPTIONS: SFRV5 96.125/96.1875 Call Spread Bought
3x blocks in the SFRV5 96.125/96.1875 call spread with paper paying 5.5 on 15K across those blocks. A further 7.5K lots trade on screen.
COMMODITIES: Gold in a Clear Bull Cycle, Close to Recent Record Highs
The trend condition in WTI futures is unchanged - a bear cycle remains intact short-term gains are considered corrective. The pullback from the Sep 2 high highlights a possible recent reversal and the end of a corrective phase between Aug 13 - Sep 2. Initial resistance to watch is $66.03, the Sep 2 high. Key short-term resistance has been defined at $69.36, the Jul 30 high. A stronger resumption of weakness would open $57.71, the May 30 low. Gold remains in a clear bull cycle and continues to trade at its recent highs. The yellow metal traded to a fresh all-time high once again, last week. The break higher confirms a resumption of the primary uptrend and an extension of the sequence of higher highs and higher lows. The next objective is $3674.8, a Fibonacci projection. Initial firm support lies at $3504.1, the 20-day EMA.
- WTI Crude up $0.26 or +0.41% at $62.94
- Natural Gas up $0.02 or +0.82% at $2.964
- Gold spot up $1.54 or +0.04% at $3644.05
- Copper up $0.35 or +0.08% at $465.5
- Silver up $0.02 or +0.05% at $42.199
- Platinum up $3.49 or +0.25% at $1400.63
EQUITIES: E-Mini S&P Remains in a Bullish Price Sequence
A corrective bear cycle in Eurostoxx 50 futures remains in play. Recent weakness resulted in a breach of 5370.21, the 50-day EMA. A clear break of this average strengthens a short-term bearish threat and signals scope for a deeper retracement towards 5166.00, the Aug 1 low and a key support. On the upside, the contract has recovered above the 20-day EMA - a bullish development for now. The next resistance to watch is 5445.00, Aug 26 high. A bull cycle in S&P E-Minis remains intact and last week’s fresh cycle highs reinforce current conditions. The move higher confirms a resumption of the primary uptrend and maintains the bullish price sequence of higher highs and higher lows. Sights are on the 6685.25, a Fibonacci projection, and the 6700.00 handle. On the downside, initial support to watch is 6547.03, the 20-day EMA.
- In China the SHANGHAI closed lower by 10.094 pts or -0.26% at 3860.504 and the HANG SENG ended 58.4 pts higher or +0.22% at 26446.56.
- Across Europe, Germany's DAX trades higher by 137.47 pts or +0.58% at 23836.41, FTSE 100 lower by 2.69 pts or -0.03% at 9280.55, CAC 40 up 93.41 pts or +1.19% at 7918.65 and Euro Stoxx 50 up 47.55 pts or +0.88% at 5438.26.
- Dow Jones mini up 114 pts or +0.25% at 45967, S&P 500 mini up 7 pts or +0.11% at 6595, NASDAQ mini down 10.5 pts or -0.04% at 24102.75.
