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- Varchev Finance: Trading day in one post 24.05.2018
Varchev Finance: Trading day in one post 24.05.2018
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Loading...Asian stock market: Asian markets are trading with declines, in view of the reluctance to trade war. Japan's Nikkei is down 1.25%. The Australian ASX wiped out 0.17% of its value. Chinese markets are trading without major changes. Hang Seng rose by 0.11%, and Shanghai composite was down 0.04%.
FX market: USD remains in vogue. The dollar index, measuring the strength of the US currency against its major competitors, remains far above the support area. EUR/USD moves in a more similar way. After the SMA 200 test, the USD appreciated significantly against the euro. The pair is currently in a support zone, but if it breaks below 1.1600, we can target the next level at about 1.1500. The sentiment towards the US currency remains positive. The Fed continues to pursue the policy of interest rate rises, which makes green money more expensive. Market analysts expect an increase in the June rate, estimating this at 78.3%. We think USD will continue to shine more than other currencies and we'd better use any correction for an entry. JPY managed to grab a few hundred pips increase. The tension between China and the United States is on its way to escalate, and this is positive for JPY. However, it should not be forgotten that BoJ is currently conducting the most mitigating monetary policy of any developed country. Negative interest rates and QE = weak currency. If the tensions between China and the United States fall, we will probably see the yen falling rapidly. For the moment, we remain cautious about the Japanese currency. 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.
Commodities market: 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 correction before we enter into an order. OIL: Black Gold futures indicate a decrease in price during the Asian hours. Brent crude wiped 0.9 percent of its value and traded at about 79.65 dollars a barrel, while WTI declined by 0.14 percent and traded at about 71.74 dollars a barrel.
European stock market: European indices will start the session in a negative territory. The German DAX will open a 30-point drop in price around €12975, the French CAC, with a 15-point drop in the price of € 5561 and the UKX with a 24-point drop of 7778 pounds.
American Stock Market: The question now that everyone is asking .. Is this correction to the short-term upward trend or have we seen in the last weeks a correction of the medium-term downward movement? The answer .. well we're not a fortune teller. We do not have a higher bottom yet .. which could lead to an extra fall in the price of the indices before we can move up again. Or can we have a lower peak to deepen the correction? For now it is very risky to get into any position. We remain cautious.
Economic calendar for the European and American trade sessions 24.05.2018
9:00 Germany - Gross domestic product
10:00 USA - FED's member William Dudley speech
11:00 UK - BoE's governor M.Carney speaks
11:30 UK - Retail sales
14:30 EU - ECB Monetary policy meeting accounts
15:30 USA - Initial jobless claims
16:00 USA - Housing price index
17:00 USA - Existing home sales
20:00 UK - BoE's governor M.Carney speaks
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