The dollar appreciated against most currencies

There was mixed trading on US exchanges and the leading indices closed in red. The reason for shaking the markets was President Donald Trump's warning to North Korea that their threats would be "welcomed with fire and anger." Geopolitical tensions are set to be the main driving force of markets in the near future, while North Korea's nuclear weapons provocations are not diminishing.

During the day, the Dow Jones declined by 60 points, but at the end of the session ended with 33.08 points lower at 22118.42. The CBOE Volatility Index (VIX), which measures the "fear" in the markets, rose 11%, indicating volatility in market participants. The broad S & P 500 ended the day with 0.24 percent down to 2480.91 points, while Nasdaq wiped out 0.21 percent of its value to 6370.46. European exchanges enjoyed good trading, and the German DAX index rose 0.28 percent to 12,292.05 points, while the leading English index FTSE 100 added 0.14 percent to its value and finished the trading session at 7542.73 points.

The day started weak for the dollar, but the US currency turned the trend and appreciated against most currencies. The JOLTs Job Openings economic indicator showed better data than expected, which supported the dollar and led to an appreciation against the euro to 1.1754, which was a fall for the EUR / USD currency pair by 0.36%. Against the backdrop of the rising dollar, oil fell 0.34 percent to $ 48.99 a barrel, while the world's Brent benchmark could be bought at a price of $ 52.02 a barrel, down by 0.29 percent. Geopolitical tensions between the United States and North Korea have pushed a lot of investors to gold, which is renowned as a refuge during market uncertainty. The precious metal rose 1.09% to almost 1261 dollars per troy ounce.

The main event during the day will be data on light crude oil reserves in the US as of August 4th. Stocks are forecast to decrease by -2100 thousand compared to -1527 thousand in the prior-year period. If expectations are justified, this will have a positive impact on the price of oil, and we may see a 50-barrel barrier over the psychological barrier.

Energy Select Sector SPDR Fund - Living Room

The fund that invests in energy companies is in a downward trend, and after the correctional upward movement we can use the opportunity to get into a short position. For confirmation, we'll wait for a low peak to make sure the correction completes its move, and we may open a deal on the next downside of the Stoastic indicator. For the first time we use the psychological limit below the local minimum at 63.25 at the level of 63 dollars per share. Reversing the price in the channel boundaries and rising above 66.80 will offset our forecast for deepening downward movement.

EUR / USD - 4 hours

The EUR / USD currency pair is experiencing a recurring pattern of breakthrough and a strong depreciation that could continue the price development with a new break below the last line of resistance. This gives a good entry level in a short position, but we need to be cautious about the support of 1.17. Stoastic is in downward direction without signaling any directional reversal. If you rise above the average trend line around 1.18, we can expect to increase traffic and reach a new local maximum.

OilUK - 4 hours

Brent crude oil has traded in a shrinking triangle since early August, and we suppose it is a sign that the market is expecting an important decision from the leadership meetings of the raw materials to take it in a clear direction. We can see breakthroughs below the bottom of the triangle around $ 51.60, but our expectations are for a resumption of appreciation after there is a break above the line of resistance of about $ 52.50 per barrel.

Nikkei 225 - Living Room

Japan's Nikkei 225 June index moves in a narrow range between 19900 and 20250, and the current level coincides with a 50-day average and is approaching 100 times, indicating market weakness and volatility in market participants. The ADX indicator, which measures the trend strength, is low, indicating a lack of trend and shows that it is not good to make investment decisions at this stage. An increase of more than 25 of the indicator levels will mean that the index has gone in a given direction, and we can see and test the 100 periodic average that acts as a support and a downsizing area.