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- Trading day in one post 25.05.2017
Trading day in one post 25.05.2017
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Loading...The Asian markets pointer to higher open and traded in the same direction during the night after the US shares closed again at higher levels. The Republican Health Bill was approved by the Senate and this gave a positive boost to the indices. Also the Fed's report on monetary policy has made it clear that the Central Bank will look for a way to start a reduction in its balance sheet and assets which was positive for the stocks. Investors are also expecting the OPEC meeting in Vienna today.
Nikkei 225 rose by 0.37%, Kospi rose by 0.87%, and S&P/ASX200 were also higher by 0.04%. Chinese markets were trading higher with Shanghai composite increased by 0.39%. Hang Seng Index was up by 0.58%.
Oil price broke through the support on $51.50 and traded above it around $51.80/barrel awaiting for the meeting. Markets expect the agreement to be extended in term and quote but investors are worried again if the production promises will be kept by all the countries members.
The US dollar index declined again reaching almost the previous low at 96.80.
Economic calendar for the European and American trade sessions:
11:00 AUD - RBA Assist Gov Debelle Speaks
11:30 UK - BBA Mortgage Approvals
11:30 UK - Business Investment
11:30 UK - GDP
15:30 USD - Goods Trade Balance
15:30 USD - Initial Jobless Claims
16:45 USD - Bloomberg Consumer Confidence
17:00 USD - FOMC Member Brainard Speaks
20:00 EUR - ECB's Constancio Speaks
USD - The currency was traded in narrow range without any significant movements. The DXY decline points to continuation of the dollar retracement. For now we stay cautions to EUR/USD and USD/JPY and continue waiting for clear signals and a probable end of the correction.
AUD - The Australian dollar traded stable although Moody's downgraded the rating of Australia's largest trading partner - China to negative. The currency is weaker than the NZD but remains supported mainly by the JPY.
CAD – The Canadian dollar continues to rise with the oil prices. The correlation between the two instruments is positive for the currency. OPEC is expected to extend the agreement to cut production. Investors are cautious today due to the OPEC meeting. Quick movements and high volatility are likely after the decision of the organization.
Indices: US markets recovered all losses from the previous trading sessions. Investors have regained their positive attitude toward Trump and this has been the right direction since the health bill was successfully passed by the Senate after the trading session closed yesterday.
Senan Fuchedzhiev - Trader
Varchev Traders Read more:
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