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- Trading day in one post 17.05.2017
Trading day in one post 17.05.2017
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Asian markets traded downward at night, due to the tightening of the negative sentiments surrounding President Trump and the dismissed director of the FBI. Also, investors expect a delay in the reforms the administration wants to implement. The negative sentiment enters the markets, supporting gold and yen, and declines in indices.
Japan's Nikkei declined by -0.63%, Australian ASX reported a -0.97% drop. Kospi traded with a -0.36% drop. Chinese markets were also red. Shanghai composite is -0.10% down.
Oil futures showed a certain price increase, trading above $ 47.60 a barrel.
The dollar index, measuring the strength of the US currency, fell to 98,170.
Economic calendar for European and American trading sessions
11:30 - UK - Average Earnings Index +Bonus (Mar)
11:30 - UK - Unemployment Rate (Mar)
12:00 - Euro zone - CPI (YoY) (Apr)
14:00 - USA - MBA 30-Year Mortgage Rate
14:00 - USA - MBA Mortgage Applications (WoW)
15:30 - CAD - Manufacturing Sales (MoM) (Mar)
17:30 - USA - Crude Oil Inventories
21:00 - UK - BoE MPC Member Haldane Speaks
USD - The dollar weakened after news that US President Donald Trump has disclosed classified information to Russia but has not violated the rules. Also, the situation with the dismissal of the FBI Director has escalated. The moods to the USD remain negative in the short term. Although the chances of raising interest rates in June rose to 93.8%, according to Bloomberg, the emerging political situation may delay the Fed's actions.
GBP - The pound continues to trade steadily and with increases to most currencies, but this may change in the ongoing negotiations with the European Union on Brexit. Economic data continues to be better than expected, with inflation rising to 2.7% but this was not enough for BoE to change its interest rates. We remain cautious about the currency. Today we expect data on average wages and unemployment rates and better data will support the currency again. Most likely, the strength of the pound will affect the most US dollar and Canadian dollar matches.
EUR - The euro remains the strongest currency, with QE declining speculation later this year positive for the common currency. Geopolitical tensions in the region have calmed down and investors feel confident in the EU. We remain positive towards EUR/USD in the short term.
JPY - The Japanese currency rose on Monday after the markets were opened, and today it was also not weak after the negative sentiment was passed on both the American markets and the Asian session. With economic growth of 1.7% for the first quarter and growth in exports, they support the currency further.
GOLD: Gold rose for the third consecutive day due to parts of the weak dollar and big players who buy the precious metal to secure a hedge for a possible decline in other financial instruments.
Senan Fuchedzhiev - Trader
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