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US DOLLAR, FOMC MINUTES, RBNZ, NZD/USD, EUR/USD – TALKING POINTS:
US Dollar held ground in APAC trade, set to test key levels ahead of FOMC minutes.
Asia Pacific equity markets found some support despite a soft Wall Street lead.
RBNZ decision provided NZD volatility, market looking at EUR/USD support levels.

GOLD PRICE OUTLOOK:
Gold and silver prices held gains ahead of Wednesday’s FOMC meeting minutes.
Disappointing US retail sales data and rising geopolitical tensions in Afghanistan boosted demand for gold.
Prices are eyeing $1,785 for immediate resistance, breaching which may open the door for further gains.

CRUDE OIL, BRENT, INFLATION, DELTA VARIANT, COVID-19, IRAN - TALKING POINTS:
Crude oil prices could rise as tensions with Iran stoke supply disruption fears.
Delta variant spread may derail global recovery and impede crude oil’s gains.
Between politics and global demand, which factor will be the most influential?

RBNZ RATE DECISION, DELTA COVID-19, NZD/USD –TALKING POINTS:
RBNZ keeps Official Cash Rates at 0.25% with country in snap Covid lockdown.
The New Zealand Dollar sold off after the decision through the prior low 0.6880.
Potential for NZD/USD to weaken further as rate hike expectations wind back.

Rising chance of 2020 tapering a significant risk for gold, with the precious metal likely to lose ground if central banks start to tighten.

KEY TALKING POINTS:
New Zealand enters a snap 3-day lockdown after one confirmed case of Covid-19 in Auckland.
RBNZ probability of 25 bps hike drops to 85% from 100%.
NZD/USD resting on key support area.

Implied volatility, synonymous with expected volatility, is a variable that shows the degree of movement expected for a given market or security. Often labeled as IV for short, implied volatility quantifies the anticipated magnitude, or size, of a move in an underlying asset.

AUSTRALIAN DOLLAR, AUD/USD, RESERVE BANK OF AUSTRALIA, RBA MINUTES – TALKING POINTS:
Australian Dollar remains under pressure as Covid cases rise.
Reserve Bank of Australia highlights health concerns, uncertain outlook.
Weakening Chinese data continues to weigh on Aussie sentiment.

Demand for new build homes has remained resilient despite the pandemic. What should traders expect from Persimmon’s half-year earnings on Wednesday?

CRUDE OIL PRICE OUTLOOK:
Crude oil prices fell for a third day after China reported disappointing retail sales and industrial production figures.
The University of Michigan consumer sentiment index plummeted to a decade low of 70.3, weighing on demand outlook.
WTI is testing trendline support, with sentiment tilting to the downside.

GOLD PRICE OUTLOOK:
Gold prices held gains after rallying 2.9% over the last 3 trading sessions.
Disappointing Chinese retail sales and industrial production figures dented risk sentiment.
Prices are eyeing $1,785 for immediate resistance, breaching which may open the door for further gains.

For economic news it is still a relatively busy week, including gross domestic product (GDP) numbers from Japan and the eurozone, and consumer price index (CPI) for the UK and Japan, and a variety of unemployment figures. In addition, Fed minutes will provide further fuel for the ongoing discussion over inflation and whether it will be a transitory phenomenon or not, a debate enlivened by this week’s CPI and PPI figures in the US. Corporate-wise however it is much quieter, as earnings season in the US really begins to wind down and with few major UK numbers. However, miners BHP and Antofagasta will report numbers, along with housebuilder Persimmon, plus Cisco and NVIDIA in the US. Video

Please see the expected dividend adjustment figures for a number of our major indices for the week commencing 16th August 2021. If you have any queries or questions on this please let us know in the comments section below. For further information regarding dividend adjustments, and how they affect  your positions, please take a look at the video.


NB: All dividend adjustments are forecasts and therefore speculative. A dividend adjustment is a <br style="background-color:#ffffff; color:#262629; font-size:14px; text-align:center">cash neutral adjustment on your account.

                                                                                           

Special Dividends

 


 


 


 







Index

Bloomberg Code

Effective Date

Summary

Dividend Amount

TOP40

AGL SJ

18/08/2021

Special Div

80

UKX

AAL LN

19/08/2021

Special Div

80 (Divi in US cents)

RTY

MNRL US

19/08/2021

Special Div

21

RTY

HL US

20/08/2021

Special Div

0.75

RTY

TAST US

24/08/2021

Special Div

41


How do dividend adjustments work? 

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Nvidia’s share price has surged by close to 50% year-to-date. Can its upcoming Q2 results draw further upside for its share price?

BRITISH POUND, US DOLLAR, JAPANESE YEN, GBP/USD, GBP/JPY – TALKING POINTS:
British Pound down with 2yr Gilt yields despite strong UK Q2 GDP data.
GBP/USD may be resuming downtrend after counter-trend support break.
GBP/JPY taking aim below 152.00 figure after range support is breached.

THE ROLE OF CENTRAL BANKS IN THE FOREX MARKET

Central banks are mainly responsible for maintaining inflation in the interest of sustainable economic growth while contributing to the overall stability of the financial system. When central banks deem it necessary they will intervene in financial markets in line with the defined “Monetary Policy Framework”. The implementation of such policy is highly monitored and anticipated by forex traders seeking to take advantage of resulting currency movements.

USD Price Analysis & News:
Inflation Induced USD Dip to be Faded.
USD and US Yields to Face Upward Pressure into Jackson Hole.

CRUDE OIL, DELTA VARIANT, INVENTORY LEVELS, IEA REPORT – TALKING POINTS:
Crude and Brent oil benchmarks at weekly highs following overnight gains.
US EIA oil and gas inventories dropped last week, disappointing expectations.
Prices take aim at psychological 70 handle but 9-day EMA pinning upside.

Traders often compare forex vs stocks to determine which market is better to trade. Despite being interconnected, the forex and stock market are vastly different. The forex market has unique characteristics that set it apart from other markets, and in the eyes of many, also make it far more attractive to trade.

Tech stocks have powered higher in recent months and the Nasdaq 100 now sits at a record high once more. Can this run continue?

In this article, we’ll explore CPI and forex trading, looking at what traders should know about the Consumer Price Index to make informed decisions. We’ll cover what CPI is as a concept, the CPI release dates, how to interpret CPI, and what to consider when trading forex against CPI data.

US DOLLAR INDEX EYEING RESISTANCE AHEAD OF CPI REPORT DUE.
US Dollar price action trading on its front foot largely due to the threat of Fed tapering.
EUR/USD weakness, USD/JPY strength driving the DXY Index 1% higher month-to-date.
Upcoming CPI data likely to weigh on the FOMC’s transitory narrative and fuel volatility.
Check out our Real Time News page for breaking market news and analyst insights.

Annual CPI inflation is expected to decline slightly in July.
Fed is unlikely to renounce hawkish policy shift on single CPI print.
EUR/USD could target fresh 2021 lows amid broad-based USD strength.

Please see the expected dividend adjustment figures for a number of our major indices for the week commencing 9th August 2021. If you have any queries or questions on this please let us know in the comments section below. For further information regarding dividend adjustments, and how they affect  your positions, please take a look at the video.

Walt Disney Q3 earnings provide an important update on their reopening transition, with rising revenues needed to justify elevated share price.