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- Varchev Finance: Trading day in one post 20.03.2018
Varchev Finance: Trading day in one post 20.03.2018
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Loading...Asian stock market: Asian markets followed Wall Street sales and traded in red territory. The Japanese Nikkei wiped out 0.5% of its value, the Australian ASX was down 0.43%, Kospi by 0.11%. Chinese indices are also red. Hang Seng declined by 0.54%, Shanghai composite and Shenzhen composite wiped out 0.26% and 0.55% of their value.
FX market: USD remains under pressure. The dollar index revolves around the key level 90. Passing and retention above this level indicates that the bulls take control over the bearish investors. EUR/USD continues to move in mid-term consolidation. For the time being, it is better to wait for the price to reach support or channel resistance to trade in the choppy. Another option is to wait a break in ascending or descending direction of consolidation and look for the appropriate position after price action signal. This week we are looking forward to the Fed's decision to raise interest rates. Analysts' expectations are an increase in the rate of 25 basis points to 1.75%. GBP received support after yesterday it was agreed that the Brexit agreement was close and would be good for both parties as well. Today we expect the island's inflation figures. Analysts expect the CPI to be 2.8%, which is still above the target of the central bank of 2%. Later in the week we will also see BoE's decision on the country's interest rate. According to market participants, we will not see an increase during this meeting (the probability of an increase is about 2%. JPY: The Japanese currency remains relatively strong. Last week, USD/JPY entered consolidation, but JPY's price is still far above what the BoJ wants. We expect the yen to remain strong at least until the worries about the trade war that Donald Trump is about to begin, stopped. Possible reason for a weakening of the JPY may be an unexpected move of the central bank - an increase in the interest rate or a decrease in QE.
Commodities market: GOLD continues to decline. The precious metal is traded at around $1315 per ounce. The reason for the decrease in the metal is the rising dollar. The price of gold moves in the mid-term downward trend. We have lower tops, but we still have no break below the key level of 1300$. If the price goes below this zone, we may see a further weakening of the metal. OIL black gold futures indicate a rise during the Asian session. Brent traded a 0.3% increase at $66.26 a barrel and WTI was a 0.4% increase at $62.31 a barrel.
European stock market: European indices will start the session with positivism. The German DAX will open an increase of about 10 points at a price of 12252 euros, the French CAC, with a 4-point rise of 5230 euro and the UKX with a 10 point increase of around 7073 pounds.
American Stock Market: Following the sell-out of technology shares yesterday that dragged the entire market, US benchmark futures are stabilizing. DJIA has a 30 point increase, S&P with a 5 point increase, but the Nasdaq remains 10 points down from the start of the Asian session. The tech index reached its 200 moving average and rebound in the upward direction. Still, the bearish momentum remains for the moment.
Which economic data will move the european and american market 20.03.2018
9:00 Germany - PPI
9:00 Switzerland - Trade balance
11:30 UK - Retail sales
11:30 UK - PPI
11:30 UK - CPI
12:00 Germany - ZEW economic sentiment
12:00 EU - ZEW Economic sentiment
14:30 Canada - Wholesale sales
14:55 USA - Redbook index
22:30 USA - API crude oil stocks
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