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- Varchev Finance: Trading day in one post – 23.07.2018
Varchev Finance: Trading day in one post - 23.07.2018
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Loading...Asian Stock Market - Asian shares declined on Monday, with Japanese stocks sharply in JPY. Nikkei 225 declined by 1.09% while the dollar increased its losses against the Japanese currency. For JPY, the USD traded at 111.00 after falling to 110.84. The US currency was 0.35% weaker than the 111.4 growth observed at the end of the New York session on Friday.
Currency market - USD collapsed against JPY and other major competitors after the US president voiced dissatisfaction with the power of green money. USD continued to decline after Trump said on Friday that he was worried about the rapid rise in interest rates. The dollar index, which is a measure of its value against a basket of 6 major currencies, fell 0.2 percent to 94.251, down from a one-year high of 95,652. CAD is almost unchanged against USD at 1.3126. It rose by about 1.4% on Friday after strong retail sales and inflation data boosted expectations for a further rise in interest rates this year. The BOJ's decision will continue to indicate a positive impact on the JPY, which will be the main driving force in the forex market.
Commodity Market - Oil growth appears to be the more likely scenario, amid Saudi Arabia's commenting that it would cut production by about 100m. barrels per day. In addition, Trump just twitted that Iran should not oppose them and threaten the states. This will most likely lead to increased tension among Middle Eastern traders. Short-term upward pulses are probable. Gold reached levels of 1235.25. The precious metal was moving downward for the strong dollar. After the dollar sold out earlier this week for Trump, it rose. Looking at hourly chart we can see that the price was close to Fibonacci level of 38.2% at 1232.16 levels, we can assume that the price will want to go to this level of correction and from there continue the downward trend.
European stock market - After the fall in Asia, European markets will accumulate the negativity generated there. The expectation of the big financial statements this week has annoyed traders who chose to sell the indices and head to the JPY. In support of JPY are Bank of Japan's intentions to raise interest rates back to 0.00%. Futures of European indices point to a negative start at the European Stock Exchange. DAX will open about 50 points lower at 12504.6, UKX will open around 7639, CAC will open around 5378. There is a lack of important economic data on the European stock market session. Markets will be driven mainly by the BOJ's decision to take up the key interest rate and developments on the issue of trade warrant soon.
US Stock Market - US indices finished in red on the last day of the week, amid the strong quarterly results of some of the biggest US companies like Microsoft and Honeywell. Dow lost 6.38 points and ended the session at 25,058.12 points, as IBM losses overshadowed Microsoft's good results. The S & P 500 also remained in red with a minimum drop of 2.66 points to a level of 2,801.83. The Nasdaq technology index fell 5.10 points and finished trading at 7,820.20 points.
Economic calendar for the European and US Stock Exchange
15:30 Canada - Wholesale Sales
Previous data: 0.1%
Forecast data: 0.3%
Actual data: -/-
17:00 USA - Sales of existing homes
Previous data: 5.43 million
Forecast data: 5.46 million
Actual data: -/-
USD continues to weaken, while JPY wins positions
BOJ intentions to raise interest rates to 0.00% sent JPY to new session highs
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