Volkswagen Scrappage Scheme

Volkswagen UK launches its new scrappage scheme by offering customers with discounts of up to £6,000 to trade in diesel vehicles when buying a new car. British drivers can easily switch to newer models as the German carmaker follows rivals in moving to calm pressure over air pollution. Earlier on Friday, rival carmaker Toyota unveiled a similar scheme of paying customers with £4,000 for a new car by exchanging older vehicles. Other brands such as BMW, Ford and Mercedes have already launched this programme previously and dealers are now expecting others to follow the same in a bid to avoid missing out on potential business.

source:Financial Times, AR Pictures

Germany and U.K. are set to release their manufacturing PMI data for August at 07:55 GMT and 08:30 GMT respectively today. Member of the European Central Bank, Constancio will deliver a speech at 09:15 GMT today, investors should pay much attention to this as his comments could contain future possible direction of the monetary policy. On Thursday, French President Emmanuel Macron’s government announced of a “major and ambitious transformation of France’s complex labour laws,” which is aimed at tackling the unemployment issue by making it easier for bosses for hire and fire.

The much awaited U.S. Nonfarm Payrolls and the U.S. Unemployment rate, both for the month of August release at 12:30 GMT today. Later, the U.S. will release its ISM Manufacturing PMI for August at 14:00 GMT. Meanwhile, the White House said it will ask the U.S. Congress for emergency funding to help people affected by Harvey Storm which killed 44 people and displayed several on the Gulf Coast. Texas city lost its drinking water supply, thousands of homes remain without power.

Technical Analysis

UKOIL

UKOIL

Just one day after the release of the U.S. crude oil inventories, report, crude oil futures performed remarkably on the commodity market. It was seen picking heights as from 08:00 UTC at $50.64 a barrel, to gain a huge set of momentary jumps and reach a record high of $52.71 a barrel at 17:00 UTC. Today, it started off its session on a bearish note at 00:00 UTC and it could move towards a downtrend through the day.

GBP/USD

GBP/USD

This asset followed a downfall through yesterday’s early trade session. However, it started picking heights as from 14:00 UTC where it was quoted at $1.28680, pulled by momentary jumps to reach $1.29332 by 18:00 UTC. Today, it opened its session on a bullish candle, but it immediately starting losing value on the market around 02:00 UTC, where it was dragged by pullback. It is expected to fall further through the day, use the Long Term Trading.

USD/JPY

USD/JPY

The USD/JPY pair was quoted at a record high of 110.644 yen around 09:00 UTC in yesterday’s session. However, this was dragged by a huge set of pullbacks from the very next hour to close this bearish trend by 15:00 UTC. In today’s early trade, it is seen trading with much volatility on the forex market, it was last seen trading at 110.032 yen around 04:00 UTC. It could eventually shift to a downtrend later during the day if the U.S. currency continue to drop.

Things to watch on the market

Tip 1

Volkswagen stocks can be affected, along with other carmakers stocks who are taking this initiative, trade these once they are available on the trading platform.

 

Tip 2

Consider trading on assets such as the EUR/USD, EUR/GBP, EUR/JPY, DAX and FTSE 100 index in regards to events due today.

 

Tip 3

It is advisable to trade the GBP/USD, AUD/USD, USD/JPY, USD/CAD and Wall Street Indices.