Undecided open for the Asian markets today - 26.06.2017

The Asian markets will open slightly higher at the start of this week. The US indices were trading in a tight range for the last three days of the previous week but closed slightly positive. It is possible that the positive sentiment will take over and stay after MSCI decided to allow to include 222 mainland Chinese stocks to its benchmark emerging markets index.

After the price of Oil fell again and reached a new bottom down to $42.06, this had a negative impact on stocks. Today the price opened slightly higher and trading around $43.16 and if this continuous, it will support the stocks and we might see higher prices.

Currency pairs with JPY, went higher and reached their previous highs and now it is possible to make a correction down, as it is expected that the JPY will get stronger. The USD continued to trade lower against most currencies, but we do expect that this will change. The Euro remained resilient and the currency remains bid up. As for the British pound, it does remain questionable, as the speculations around the raising of the interest rates in the UK is ongoing, but this is not sure.  The last Central Bank decision from the RBA and RBNZ were mostly dovish and they did not change the interest rates. However FED did raise the rates and the next increase is expected in December 2017, the chances are increasing.  This is giving us a reason to suspect that there is a possibility that the USD will strengthen against the more riskier currencies as the AUD and NZD.

There are no important economic news during the Asian session.

Nikkei will open around 20,090, ASX 200 will open higher around 5,720

Trader - S. Fuchedzhiev

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