The U.S. city of Houston is in a grip of the biggest storm in the history of the state of Texas and death toll continues to rise. Tropical Storm Harvey forced thousands of people to flee their homes as it recorded more than 30in of rain (75cm) this weekend, thus turning main roads into rivers and made it impossible to move around other than by boat. “Hundreds of roads have been closed across the city, hospitals have been evacuated and thousands of people are without electricity.” Up to 2,000 people have been rescued from floods around Houston as the storm continues to batter Texas with heavy rains. Asian indices are highly impacted by this flood, the Kospi index lost 0.65 percent and the Shanghai Composite dropped 0.86 percent earlier today.
Gold futures gained slightly in Asian trade earlier today due to a weaker U.S. dollar trend after the central bank chiefs meeting in Wyoming. Gold futures for December delivery rose by 0.14 percent as it traded at $1,299.66 a troy ounce. Last week, the commodity ended higher by reversing earlier losses and also since the Federal Reserve Chair Janet Yellen’s speech at the Jackson Hole economic symposium did not discuss the outlook for monetary policy. Financial markets in the U.K. are closed on Monday for Summer Bank Holiday.
The U.S. goods trade balance for the month of July is due to be released at 12:30 GMT today, while Japan releases its household spending for the same month at 23:30 GMT. The U.S. dollar was recorded weaker against the yen in Asian market and the USD/JPY pair traded lower by 0.17 percent. Investors impatiently await the biggest trading event of the month, the NonFarm Payrolls for August as this could generate more trading opportunities.
In Friday’s session, the U.S. West Texas Intermediate traded with much volatility on the commodity market, however, it managed to reach a high level of $47.85 a barrel around 18:00 UTC. The commodity is seen recording much volatility in today’s early trade session as markets remain impact by the Harvey storm. A look at the asset’s graph depicts that it could fluctuate further through the rest of the day.
The EUR/USD pair made good progress on Friday and even managed to close the week on at a record high. Yesterday, it was quoted at a high level of 1.19519 around 22:00 UTC. Today, this currency pair started off its session on a bearish note today at $1.19512 at 00:00 UTC, and this was dragged by a huge set of pullbacks for the upcoming hours. It is thus seen moving more towards a downtrend for today.
Asian equities eased on Monday with the impact of Hurricane Harvey and as investors still digest the Wyoming meeting outcome. The Japanese Nikkei 225 eased 0.10 percent earlier today as it opened its session on a negative note at 00:00 UTC today. Around 02:00 UTC, it started fluctuating on the market but it is seen moving more towards a bearish trend for today, keep a close watch on its trend.
Asian indices can be traded with the Classic Digital Options for today as these remain impactful by Storm Harvey.
Gold and the Gold/EUR can be traded with the FX/CFD tool today. It is also a good opportunity to trade the Gold vs Silver pair.
Assets such as the USD/JPY, EUR/USD, and the EUR/JPY could be traded in regards to today’s events.