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- Trading day in one post 16.06.2017
Trading day in one post 16.06.2017
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Loading...Investors remained cautious about the stocks during the session in Asia after the US Federal Reserve had raised interest rates for the second time this year yesterday, BOE left interest rates unchanged and today BoJ has also not changed the interest rates in Japan. After all these decisions, investors will probably look for riskier instruments in the absence of real short-term threats and uncertainties. The BoJ press conference is expected at 09:30 (our time).
Nikkei 225 rose by 0.53% and Kospi is down by -0.07%. ASX 200 rose 0.26% while Chinese markets were trading mixed. Shanghai Composite is down -0.25%.
Oil is trading with a 0.09% drop to $ 44.42 a barrel.
Here are the economic data that will move the market during the day
09:30 - Japan - BoJ Press Conference
12:00 - Europe - CPI
15:30 - United States - Building Permits
15:30 - USA - Housing Starts
15:30 - Canada - Foreign Securities Purchases
17:00 - USA - Michigan Consumer Sentiment
19:45 - USA - FOMC Member Kaplan Speaks
20:00 - USA - U.S. Baker Hughes Oil Rig Count
USD - The dollar received support after the Fed raised its key interest rate and expressed its position that a third increase is due by the end of this year. The dollar sentiment has changed to a positive one and we can now see any correction as an opportunity to take long positions, but only against the weaker currencies.
CAD - The moods about the Canadian are also quite positive. One reason is that the Canadian economy will be positively influenced by the growth of the US economy and the sentiment on the dollar will also support CAD. The impact of commodity prices on the currency may weaken and therefore we should not underestimate the strength of the currency solely in terms of falling commodity prices.
GBP - The pound has grown steadily after the Central Bank left its interest rates unchanged, but 3 out of 8 members voted for an increase. Risks to the country's economy remain valid, but for now the data from UK continues to outperform. Article 50 will be activated on Monday June 19, 2017 and then the Brexit talks begin. It is important to see how these talks will start and if the European Union maintains its tight tone, this may negatively affect the currency. Short-term positions with GBP remain very risky in both directions.
AUD / NZD - Risk currencies continue to be traded with a rise and remain sentimentally backed by risk sentiment. The positive tone of the stock markets and the absence of potential risks and uncertainties continue to act favorably on these currencies. Deals with AUD and NZD have the greatest potential to succeed, as their risk factor is best expressed in a positive direction.
Indexes - The stock market continues to be positively supported. Yes, there are risks and investors need to sort out the better sectors with growth potential. As long as risk sentiment rises, stocks will rise despite US interest rates rise. Some analysts believe that despite the Fed's tons and promises, there may not be the third major increase this year, as recent data surprised investors below expectations.
Trader - Senan Fuchedzhiev
Varchev Traders Read more:
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