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- Varchev Finance: Trading day in one post 11.05.2018
Varchev Finance: Trading day in one post 11.05.2018
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Loading...Asian Stock Market: Asian markets are trading with gains. Japanese Nikkei has a 0.69% increase. Kospi rose 0.49%. Australian ASX posted a 0.15% increase. Chinese markets are also traded on green territory. Hang Seng was 0.83% up, and Shanghai composite and Shenzhen composite added 0.03% and 0.06% to their value.
FX market: Everyone is asking .. was that the end of the USD rise? For the moment, we do not have such indications. The short-term movement remains highly positive for USD, of course there are corrections, but in general dollar bulls are in power. The dollar index remains above the key level 92 and us SMA 200, which is considered a positive signal. The market has already priced in 4 interest hikes in 2018 and maybe soon the dollar will reach its ceiling. However, we may not see a large reversing movement soon. The reason for this is that the US economy is much better off than other countries. The FEDs are in the midst of their tightening cycle, while other major central banks, such as the ECB and BoJ, have not yet begun it. For the moment, we remain positive about the green currency. GBP: After the serious decline that reported the pound at the interest rate announcement on Thursday, Mark Carney decided to give the bulls some hope. According to his views, interest rate increase is possible by the end of the year if there are no serious political shocks on the island. Bearing in mind that Brexit is still ahead, we can conclude that there will be shocks. For the moment, sentiment towards the pounds is rather negative. CAD: The Canadian dollar remains supported by the high oil price. We are looking forward to seeing NAFTA changes to determine where the currency will move. For the time being, CAD behaves well on the market and rises against most of its competitors. We remain positive with the Canadian currency.
Commodities market: SMA 200 proved to be very difficult to overcome. GOLD again made an unsuccessful breakthrough at the key level of 1300$. 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 slight declines over Asian trade. WTI declined by 0.08% and traded at about 71.30 dollars a barrel, and Brent traded unchanged, at about 76.62 dollars a barrel.
European stock market: European indices will start the last day of the trading week in a mixed territory. The German DAX will open a 20 point increase around the price of 13035 euros, the French CAC with a 10 point decrease around the price of 5544 euros and the UKX with a 15 percentage point increase in price of 7710 pounds.
American Stock Market: Breakthrough of key resistance is a fact. Investors can now wait for short-term winnings, which will lead to a breakthrough test before they buy. The indices seem to have escaped from the bear trap and will go up again. However, we must be careful because if the price returns to the triangle, we can see significant decreases.
Economic calendar for the European and American trade sessions 11.05.2018
15:30 USA - Export and import price index
15:30 Canada - Unemployment rate
16:15 EU - ECB president Draghi speaks
17:00 USA - Michigan consumer sentiment index
20:00 USA - Baker Hughes oil rig count
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