The euro and the New Zealand dollar fell amid political instability

The rate of the New Zealand dollar fell when the ruling National Party won the most votes in the last elections, however, without gaining an absolute majority.

Now there is an opportunity to form a coalition. The euro also fell when Germany’s Chancellor Angela Merkel won the election in Germany, remaining for the fourth term, confronted with the problem of parliamentary instability due to the increased popularity of the ultra-right. Continue reading

Oil is traded without a definite dynamics on the eve of the publication of stocks this week

Uncertainty of the markets contributed to the indecisiveness of Asian investors, who are waiting for the Fed meeting and clues regarding the future monetary policy of the United States.

The MSCI index rose slightly higher after its fall during the Asian session, as well as the session on Wall Street. DJIA reached its historic high at the close of the fifth session in a row, and the S & P 500 closed the second session in a row at a record high, as the growth of yield on Treasury bonds contributed to the growth of shares in the financial sector. The Japanese Nikkei index, also following the global positive trend, rose 1.2% at the beginning of trading against a weak yen, as the Tokyo Stock Exchange opened today after a holiday weekend. Continue reading

Oil prices fall, the US dollar remains at its weakest level in almost a year

Another attempt by the Republicans to replace Obamacare failed, which casts doubt on Trump’s ability to carry out the restructuring of the tax system in the United States promised in the election campaign.

This had a negative effect on the dollar exchange rate. The USDAUD pair was trading at the two-year low, and USDCHF at the yearly low. The losses of USDJPY were limited, as the Central Bank of Japan adheres to its large-scale incentive plan, which contributed to a drop in yield. The euro traded steadily at 1.1542 at the beginning of the session: investors are cautious ahead of the ECB monetary policy meeting to be held on Thursday. Continue reading

Impact of crude oil in the US fades after an eight-day growth

Shares of Australian companies rose by 1.65%. The increase is quite impressive, if we recall the fall of 2.3% during the previous two sessions. Seoul’s markets were shocked: North Korea tested the intercontinental ballistic missile. The Australian dollar rose 0.1% and traded at $ 0.7666 on the eve of the meeting of the Reserve Bank of Australia. It is expected that the RBA will keep the interest rate unchanged, at 1.5%. The US dollar rose after the June index of activity in the industrial sector came out better than expected. Another positive factor for the US currency is a positive and stable increase in government spending on construction projects in May. Continue reading

NASDAQ and S&P 500 shows fresh record highs

Yesterday’s trade showed that the markets were tired again, as we saw that Asian stocks don’t keep up with Wall Street growth, when both NASDAQ and S&P 500 showed record highs after stronger growth in energy reserves due to higher traffic In the crud oil. Nikkei 225 stopped at 20,000 points, adding 0.1%, while ASX 200 added 0.2% after a fairly neutral release of RBA-minutes, in which the Bank was concerned about housing and labor markets, balancing it with Forecast of sustainable GDP growth. In China, as in Shanghai comp. And Hang Seng lost 0.3%, as regulatory concerns mount.

In the currency pair, the dollar remained low, as we saw that the USD index, a measure of the strength of the US dollar against the basket of currencies, remains below the 99 level. JPY found strength, as sentiment fell overnight, prompting USDJPY to fall below 113.50, Canceling strong pressure on the purchase from the end of yesterday.
GBP remains muted ahead of today’s release of CPI, in which we expect a 2.6% growth year-on-year. Continue reading

Buy the rumor and sell the fact?

The main news of the weekend was the victory of the French presidential candidate Macron at 2 round of voting, which came in at 66.06% of vote. The lead up to the election weekend, saw the EUR being bought aggressively as markets priced in polling data which showed his advantage in numbers. 

The markets opened with one last push of buyers, before we saw that the sellers again enter after the fact in covering long positions and trading with the hunt. Technically, EURUSD remains between the support level of 1.0950 and the resistance level of 1.1000, with a fixation of what is likely to set the tone for the upcoming week. Positive data from the EU will see a level of 1.1000, verifiable, while more pessimistic news will see the support level of 1.0950, tested. Continue reading