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- Varchev Finance: Trading day in one post 15.05.2018
Varchev Finance: Trading day in one post 15.05.2018
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Loading...Asian stock market: Asian benchmarks are trading with declines. Japan's Nikkei is 0.11% down. The Australian ASX wiped out 0.29% of its value. Chinese markets, however, are trading with mixed moods. Hang Seng lost 0.42% of its value, but Shanghai composite and Shenzhen composite were up 0.21% and 0.29%
FX market: USD returns again on stage. After a test of FiBo 23.6 and SMA 200, the dollar index rebounded in the upward direction. The same is true of EUR/USD. We have a Price action signal for a downward moment in the pair. The price remains below the SMA 200 and the main diagonal resistance. Technical analysis indicates a decrease. Fundamental analysis also supports greenback. 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. GBP: gained support from the latest comments by Mark Carney, President of the Bank of England. According to him, we might see an interest rate rise in August. The market reacts instantly and GDP is fired by about 100 pips against its main competitors. Fundamentally, however, the economy of the island lava. Brexit's worries still weigh on investors, and this may undermine the upward momentum of the pound. Today we expect data on average payment. Higher data than expected is considered positive for pounds. 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. We had a few tests at 200 last weekend 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 rise in price during the Asian hours. WTI traded with a 13 cents increase at about $71.09 a barrel, and Brent traded a 14 cents increase, at about $78.37 a barrel.
The European stock market: European indices will start the session with small declines. The German DAX will open a 6-point drop around the price of 12963 euros, the French CAC with a 5 point decrease around the price of 5527 euros and the UKX UKX with a 13 point decline of about 7692 pounds.
American Stock Market: After breaking the key resistance that shapes the downward movement is already a fact, we are waiting for investors to get on the train again and start buying. For the time being, the foundation remains positive. The situation in North Korea has calmed down, the trade war will not take place in the expected size, NAFTA will not be detrimental to 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 15.05.2018
9:00 Germany - Gross domestic product
10:15 Switzerland - PPI
11:30 UK - Average earnings
11:30 UK - Claimant change
12:00 Germany - ZEW economic sentiment
12:00 EU - Gross domestic product
12:00 EU - Industrial production
15:30 USA - Retail sales
15:55 USA - Redbook index
17:00 USA - Business inventories
23:00 USA - Net long-term TIC flows
23:30 USA - API Crude oil stock
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