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- Varchev Finance: Trading day in one post 17.05.2018
Varchev Finance: Trading day in one post 17.05.2018
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Loading...Asian Stock Market: Asian markets are trading in mixed moods. Japan's Nikkei is with a 0.66% increase due to a weakening yen. Australian ASX declined by 0.28%. Chinese markets are trading in red territory. Hang Seng wiped out 0.01% of its value and Shanghai composite and Shenzhen composite fell 0.23% and 0.29%
FX market: USD is gaining momentum again. After testing the SMA 200, the dollar index shot upwards. The EUR/USD situation is identical. The dollar continues to appreciate after it broke further support. Investors are now targeting 1.1700. At present, the fundamental of the greenback remains strongly positive. The central bank will raise the interest rate 3 more times by the end of the year, making the gap between the US and other developed countries widening. other major factor is that rising yields on US government bonds is increasing the demand of USD. We remain positive towards the dollar. CAD: The only currency that manages to withstand a strong dollar. The Canadian dollar is very well supported by the high oil price. Another very important reason is that the economy is close to its potential growth, which means that if the central bank does not want the economy to overheat, it will have to raise the interest rate. We remain positive to CAD. JPY remains 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 marker: GOLD finally came out of consolidation and traded below the key level of $1300. For now, the impulse remains downward, but we can see correction and puncture testing. The strengthening of the dollar has finally negatively affected the precious metal as investors may prefer to invest in US bonds like safe haven rather than gold. GOLD moods for the moment remain negative, but it's a good idea to wait for an adjustment before we enter into an order. OIL: Black Gold futures indicate a rise during the Asian hours. Brent oil is trading a 4-cent rise in price around $79.32 a barrel. WTI is a 19-cent rise and trades at about $71.68 a barrel.
European stock market: European markets will open without major changes. The German DAX will start the session by about 5 points down on the price of 13013 euros, the French CAC with 2 points lowering the price of 5577 euros and the UK UKX with a 20 point drop of 7730 pounds.
US stock market: US indices made a correction that is well accepted by investors. The breakthrough of the main diagonal resistance broke down the bearish trap in which the indices had fallen. Gaining profits was anticipated, and now investors are once again on the beaten track. The moods to the US indices remain positive as we think the ups and downs are yet to come.
Economic calendar for the European and American trade sessions 17.05.2018
12:00 EU - Construction output
15:30 USA - Initial jobless claims
15:30 Canada - ADP Employment change
17:30 Canada - BoC review
17:45 USA - FOMC member Kashkari speaks
20:30 USA - FOMC member Kaplan speaks
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