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- Varchev Finance: Trading day in one post 28.03.2018
Varchev Finance: Trading day in one post 28.03.2018
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Loading...Asian Stock Market: Asian indices trade with declines. Japan's Nikkei is 1.69% down. Australian ASX is down with 0.67%. Chinese markets also joined the "fun". Hang Seng shed 0.9% of its value. Shanghai composite and Shenzhen composite declined by 0.68% and 0.32%.
FX market: USD will remain weak. The US currency failed to break below 1.22 against EUR and now the market expects the upward trend in the pair to continue. Today we expect the GDP data for the first quarter of 2018. If the result is above expectations, we may see a strong upward momentum in USD. Other important data is consumer spending. They are one of the main measures of inflation. Higher data on spending will create speculation that inflation is rising in the country, which is the goal of the Federal Reserve. This in turn will cause the central bank to raise the interest rate at a faster rate than expected and to support the dollar. GBP: From weakest to strongest. Positivism around the pounds is growing. We expect the signing of the Brexit deal soon, which will give the official start of the country's exit from the EU. Market sentiment is a positive deal for both countries, which is positive for GBP. We remain positive to GBP and we are waiting for an appropriate correction to enter a long position. CAD: The Canadian dollar is also gaining momentum. Despite NAFTA review negotiations, investors believe the Canadian economy will not suffer significantly. We see that the market thinks so, and the long positions of CAD are growing. Today, we expect a large volume of options to exit at 1.2850, then we can look at the key support of 1.2800. We remain positive towards CAD.
Commodities market: GOLD is trading again near the resistance zone. Although precious metal lost some of its positive momentum, the price did not make a serious downward move. We are waiting to see if the fear of investors will prevail and the price of gold will be over $1370 per ounce or the market correction will end and we will again see a support zone test around $1300. OIL: Black Gold futures indicate a drop in price. WTI traded with a 0.6% drop at $64.86 a barrel, and Brent was down 0.5% and traded at $69.75 a barrel. The fall in oil is due to surprising API data. Increases in raw material stocks have managed to sink the price of OIL.
European stock market: European indices will open up. The German DAX will start the session with a 25 point increase of 11865 euros, the French CAC with a 7 point increase of 5066 euros and the UKX with a 20 point increase of 6950 pounds. European indices reached the key area of support again. Although today's session will start positively, it is likely to turn negative again. Moving averages indicate that the price has already entered the bear market. We remain negative towards European benchmarks.
American Bond Market: "Blood Bath" is the exact definition of what happened yesterday with the US indices. For the day, DJIA generated 750 points decrease, S&P shed 80 points, and Nasdaq 360 points. The slump of the technology sector dragged the entire market into a corrective territory. Although US indices are still over 200 SMA, as well as European indices, they can pass under them and enter the bear territory.
Economic calendar for the European and American trade sessions 28.03.2018
9:00 Germany - Gfk consumer confidence
11:00 Switzerland - ZEW survey expectations
14:00 USA - MBA mortgage applications
15:30 USA - Gross domestic product
15:30 USA - Consumption spending
15:30 USA - Trade balance
17:00 USA - Pending home sales
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