- Home
- >
- Fundamental Analysis
- >
- What can we expect in the next week: 17-21 April, 2017
What can we expect in the next week: 17-21 April, 2017
Rating:
Loading...Geopolitical risks have intensified over the past week after Trump worsen relations with Russia, China and North Korea. Tensions over the nuclear program of North Korea strengthen days after the US fired missiles at Syrian airport. Uncertainty exists in Europe because of the upcoming presidential elections in France at the end of next week, and appeared doubts about whether Britain can withstand political turmoil around the Brexit negotiations. The continuing geopolitical uncertainties affect the fear index (VIX), which rose to 15.79 and this may mean a probability of shares decline.
The indices closed lower probably because of escalating negative relationship between the US and North Korea. Gold, oil and the Japanese yen rose as investors shift their assets in alternative safe-haven instruments.
The most important economic data next week:
Monday:
05:00 China - GDP
05:00 China - Industrial Production
Tuesday:
03:30 Australia - RBA meeting minutes
15:30 USA - Building Permits
15:30 Canada - Foreign Securities Purchases
16:15 US - Industrial Production
17:05 - New Zealand - GlobalDairyTrade price index
Wednesday:
12:00 Europe - CPI
12:00 Europe - Trade Balance
17:30 US - Oil inventories
Thursday:
01:45 New Zealand - CPI
02:50 Japan - Adjusted trade balance
09:00 Germany - PPI
15:30 US - Philadelphia Fed manufacturing index
Friday:
10:00 France -PMI
10:30 Germany - PMI
11:00 Europe - PMI
11:30 UK - Retail
15:30 Canada - CPI
16:45 USA - PMI
17:00 US - Existing home sales
After Easter the current trend is expected to continue. North Korea vowed that if it comes under attack by the United States will respond to the hostilities.
Growing tension of the US attacks has hurt the dollar index. Only the shares in the military sector may receive support from it. On the other hand it remains less time to enumerate in France which has added pressure to the markets.
More cautious players will prefer to secure by withdrawing their funds and invest them in safe havens like gold and the yen.
Rising uncertainty suggests a decline in market shares and the decline in the price of the euro.
Attacks by the US have a positive impact on the oil price, implying appreciation of the Canadian because of the strong correlation in the price of black gold and the Canadian currency.
We can look for short positions on: EUR/JPY; EUR/CAD; USD/JPY; USD/CAD; AUD/JPY; NZD/JPY and indexes.
Possibilities for long on: GOLD; CL
Trader I. Ivanov
Varchev Traders Read more:
If you think, we can improve that section,
please comment. Your oppinion is imortant for us.
