Yesterday after the market closed, Apple Inc. published its reports, showing good results. Against this backdrop, shares of technology companies in Asia such as Manufacturing Co and AAC Technologies Holdings Inc, which are Apple’s suppliers, rose in price. Revenue from sales of the iPhone exceeded expectations, as well as earnings per share of the company, and soon there will be 10 anniversary of the release of the smartphone from Apple. The MSCI index was stable at the beginning of trading, and the Nikkei rose 0.4%. On Wall Street, Nasdaq rose 0.23%, Dow Jones closed 0.33% higher yesterday, while the S & P 500 rose 0.24%. Continue reading
In Asia today, the focus of news from China-recent strict measures taken by the state concerning large banks and private companies to contain risky borrowings abroad, led to riots in the financial sector. The active sale of shares continues, and the head of the Commission on the Regulation of Banking Activities of China Guo Shuking announced his likely resignation. Such a development could lead to a rapid fall in the national currency. Nevertheless, the companies that touched on the above-mentioned events are trying to calm investors by noting that these are only standard procedures, the purpose of which is to ensure the security of the national currency. Continue reading
Today is a busy day for traders, as important events will occur immediately in the three leading economies of the world.
In Britain today is the day of parliamentary elections: citizens will come to polling stations to cast their vote for a particular political party. The pound sterling rate will react sensitively to the exit poll results and any news regarding the elections. At the moment, the value of the GBP is a potential victory for the Conservatives, and if the election results are different, that is, the Labor Party will win, the pound’s rate will rapidly fall. If the Conservatives do not win a majority, it will be seen as a bearish pound, as the parties will have to form a coalition, which entails additional political risk as uncertainty grows. Continue reading
Last week, trading was fairly dynamic, the dollar recovered and traded in the green zone after the bulls overcame the resistance. On the first day of the new week there will be 3 key data releases in the US, the EU and Canada.
In Canada, there are data of the trade sector, which tends to have a tremendous impact on the value of the national currency: the more the country’s exports, the higher the demand for the currency needed to pay for goods. Conversely, the more a country imports goods, the greater the supply of the national currency, it is necessary to pay for imports. Index of current accounts will reflect the change in the value of imports and exports, therefore, if it comes out higher than expected, the Canadian dollar will grow due to increased demand for the currency. If the report falls below expectations, the Canadian dollar will fall due to the increased supply of currency. Continue reading
Among the first will be published the Index of the business climate IFO Germany with a preliminary forecast of 112.9. The index will show the degree of confidence of producers, construction companies, wholesale and retail trade enterprises in the future of the country and the EU as a whole, since Germany is the largest economy of the euro area. If the publication exceeds expectations, then the confidence of entrepreneurs has increased, which will contribute to the growth of the euro. The disappointing indicator will become an indicator of the decline in confidence, against which the euro’s rate will fall.
In the UK there will be a Hearing Report on inflation, which is of particular interest to traders, as they are able to give markets an idea of the economic climate in the UK after Brexit. Continue reading
The majority of the total economic activity of the EU falls on the German economy. Consequently, traders closely monitor the macroeconomic indicators of Germany, which can be judged on the economic climate in the euro area. The European currency gained support amid a recession of recent political instability: Macron won the presidential election in France, which reassured market participants who feared the victory of Le Pen and the probable Frexit. Decisive policy is the key to the strength of the eurozone, but the near future of a single currency will be determined by the economic performance of the EU and its largest member countries. Today, Germany’s fundamental data will come out, which will give the euro a reason to grow or fall depending on the outcome of publications. Continue reading
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
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