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- Varchev Finance: Trading day in one post 08.01.2018
Varchev Finance: Trading day in one post 08.01.2018
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Loading...Asian market: Liquidity during the Asian session was limited because the stock exchange in Japan was closed. Australian ASX has a 0.11% increase, with the financial sector contributing the most. Kospi rose 0.4%. Chinese markets are trading in mixed moods. Shanghai composite is 0.35% up, Shenzhen composite is trading unchanged, and Hang Seng is down 0.04%.
Forex market: USD remains under pressure. Despite speculation about at least 2 interest rises in 2018, the US currency remains among the losers on the market. The dollar index remains above the key level 92, but that does not mean that if bad economic data from the US will not go below it and enter the bearish trend. This week we are expecting US inflation figures. They will be closely monitored by central bankers as their most important data for future monetary policy. CAD: The Canadian dollar keeps its strong upward momentum from the previous week. Since the last month, Canada's economic data is positive, speculation that BoC will raise the interest rate at least once this year is rising. Another factor is the rising cost of oil. We remain positively tuned to CAD and will look for long positions of the currency for every convenient adjustment. b remains under pressure. The market does not expect the central bank to take action to raise the interest rate or reduce QE, which negatively affects the JPY. We remain negative to the yen. GBP is among the strong currencies currently on the market. Negotiations on the EU's exit from the EU are on track, though difficult. We are expecting the next round of talks to discuss UK-EU trade agreements. Also, in strong support for the GBP, speculation is that the central bank may raise the interest rate twice this year to catch up on inflation that is over 3%.
Commodities Market: GOLD: Investors seem unwilling to leave precious metal despite the fact that the global environment has calmed. The rise in gold is mainly due to the weak dollar and low inflation in the United States. For now, long positions are more attractive, but it is prudent to wait for a price correction so we can minimize our risk. OIL is trading on a increase on the first day of the week. WTI rose 0.23% to 61.58 dollars a barrel, and Brent added 0.18% to its value and traded at 67.74 dollars a barrel. The black gold tie remains positive. The OPEC agreement has an effect and at present oil supply is less than demand, which raises the price of OIL.
European stock market: European benchmarks will open up. The German DAX will open a 50 point increase around 13380, the French CAC with a 15 point increase to 5485 and the UKX with a 2 point increase in price of 7720. Today we expect to see retail sales data for December in the union. At higher-than-expected data, we will see an increase in stock indices.
American Stock Market: There seems to be nothing to stop the rise of US indices. US benchmark futures started the week with upward gaps, with expectations for upward movement to continue. D. Trump's policy clearly has a positive effect on the US economy. Despite lower-than-expected NFP data, the stock market quickly returned all losses and traded at a record high.
Economic calendar for the European and American trade sessions 08.01.2018
9:00 Germany - Factory orders
10:15 Switzerland - CPI
10:30 UK - Halifax house price index
11:30 EU - Sentix investor confidence
12:00 EU - Retail sales
17:30 Canada - BoC Business outlook survey
19:40 USA - FOMC member Bostic speaks
20:35 USA - FOMC member Williams speaks
22:00 USA - Consumer credit
23:00 USA - FOMC member Rosengren speaks
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