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- Varchev Finance: Trading day in one post 07.05.2018
Varchev Finance: Trading day in one post 07.05.2018
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Loading...Asian stock market: Asian indices are trading with mixed moods. Japan's Nikkei is down 0.19%. Australian ASX rose 0.52%. China's markets also reported an increase. Hang Seng is in green territory with 0.05%. Shanghai composite and Shenzhen composite added 0.32% and 0.63%.
FX market: USD still shows no signs of weakness. Although last week's NFP data and average hourly wages were below expectations, the greenback refused to lose strength. The FED confirmation for 4 interest rate rises until the end of this year fuel the dollar's engine. Reaching the central bank's inflation target also supports the strength of the currency. From a technical point of view, EUR/USD is traded below the strong resistance zone 1.20$. Remaining under this zone gives force the USD bulls. For now, it is more logical to look for long positions of the dollar. GBP: The last mirage of investors for interest rate rises in May are fading. Economic data from the island are not positive, and this strongly affects the strength of the currency. The EU's expectations are that Britain's economy will continue to shrink, possibly reaching the growth rate of Italy (the slowest developing country in the EU). For now, our sentiment towards GBP remains negative. CAD: The Canadian dollar remains relatively strong. The high oil price supports the currency. The country's economy is doing well, negotiations on NAFTA seem not to be as scary and restrictive as the market was thinking. If economic data from the country continues to exceed expectations, we may see another interest rate increase by the end of the year. For the moment we are positive about the Canadian dollar.
Commodities market: Once again a failed break of key level 1300$ on GOLD. Although the dollar did not lose much, the precious metal went upward. Maybe it's time to look for long positions and a possible test at the top of the consolidation. If we do not feel comfortable trading in a choppy market, it is better to wait for a breakthrough in support or resistance before we enter positions. OIL: Black Gold futures indicate that the upward trend continues with full force. WTI traded 0.7 percent during the Asian session, around $70.18 a barrel, and Brent oil rose 0.5 percent to $75.22 a barrel.
European stock market: European indices will start the session in positive territory. The German DAX will open a 50 percent increase around the 12882 EUR, the French CAC with a 15 point increase around the 5538 EUR and the UKX with a 20 point increase of around 7603 pounds.
American Stock Market: After another test of 200 moving averages, investors were again bought in US stocks. For the time being, the foundation remains rather positive. The situation in North Korea has calmed down, the trade war will not be in the expected size, NAFTA will not be as disastrous for the United States. It seems that long positions are back in fashion. We remain positive towards the US indices.
Economic calendar for the European and American trade sessions 07.05.2018
9:00 Germany - Factory orders
10:15 Switzerland - CPI
11:30 EU - Sentix investors confidence
15:25 USA - FOMC Member Bostic speech
21:00 USA FOMC Member Barkin speech
22:00 USA - Consumer credit change
22:30 USA - FOMC Member Kaplan speech
22:30 USA - FOMC Member Evans speech
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