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- Varchev Finance: Trading day in one post 14.05.2018
Varchev Finance: Trading day in one post 14.05.2018
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Loading...Asian stock market: Asian markets are trading with gains. Japan's Nikkei is 0.38% up. Australian ASX added 0.29% to its value. Chinese markets are also in positive territory. Hang Seng jumped 1.28%, Shanghai composite and Shenzhen composite added 0.55% and 0.2% to their value.
FX Market: USD is trading down during the Asian session. The dollar index measuring the strength of the US currency against its main competitors is around 92.50, down from 92.60. EUR/USD is traded with an increase. Still, the pair remained below its 200 moving average as well as under FiBO 38.2 and a main horizontal resistance. We can look for short positions reaching the resistance level around 1.2020. Moving above this level will negate the downward momentum of the US currency and we can see new upward impulses to test the breakthrough of consolidation. Fundamentally, the greenback must remain strong. The US economy is developing at the fastest pace than other developed countries. The central bank has taken aggressive monetary policy and plans to implement its plan for a total of 4 interest rates this year. Inflation in the country has reached the target of the Fed. We remain positive toward the dollar. 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. JPY: Stays under pressure. The currency has depreciated by more than 1,000 pips in recent months against most of its competitors. Although there were several good and strong moments, the Japanese currency remains under pressure. But that should not surprise us. Central Bank policy is heavily negative for JPY, and it does not seem to be making any changes soon. For the moment we are negatively prone to JPY.
Commodities market: GOLD: Trading day in consolidation yet again. We had a few tests at 200 last week but all failed. The decline of the dollar is positive for the precious metal, and perhaps this is the reason for the rebound from the moving average. For the moment, we do not expect exit from the consolidated movement. We think it is better to wait for the price to break below/above the support/resistance and then make a decision for a deal. OIL: Black Gold futures indicate a decrease in price during the Asian session. Brent is trading 5 cents lower at $77.07 a barrel, while WTI is down 4 cents at $70.66 a barrel.
European stock market: European indices will start the session in positive territory. The German DAX will open a 40 point increase around the price of 13026 euros, the French CAC with a 14 point increase around the price of 5550 euros and the UKX UKX with a 15 point increase around the price of 7721 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 14.05.2018
9:45 USA - FOMC member Mester speech
16:40 USA - FOMC member Bullard speech
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