Asylum assets are gaining momentum after North Korea’s test of a hydrogen bomb

North Korea tested the nuclear bomb on Sunday, which immediately provoked investors to switch to safe haven assets.

Asian stocks fell while gold, sovereign bonds and the yen rose during the Asian session, although the losses in the capital were modest amid expectations that the outbreak would be rapid.

The greatest decrease was observed in Japan and South Korea, while in other regions there was a more moderate reaction. Continue reading

The stocks of Asian technology companies are growing on Apple’s accounts; The US dollar is traded on small volumes

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

On the eve of Yellen’s speech, Asian securities rose in price

On Tuesday, stocks and indices in Asia rose rapidly: investors are waiting for Yellen’s clues on the future monetary policy of the Fed. Australian stocks fell in price, while Korean and Japanese stocks went up.

The most extensive index of the Asia-Pacific region MSCI rose by several points at the beginning of trading, while the Nikkei rose by 0.1%. The US dollar index is trading at 0.1% higher at around 96,095.

The New Zealand dollar fell in price and traded with negative dynamics after the indicators of the report on public spending disappointed the expectations of the markets. Continue reading

Decisiveness of Yellen contributed to the growth of the US dollar

The dollar exchange rate is recovering from yesterday’s sell-off caused by the announcement of the interest rate: the Fed announced an increase from 1% to 1.25%, as expected. Moreover, 8/16 members of the Fed are counting on a re-increase of 0.25% this year, while 4/16 say a minimum of at least two more increases by the end of the year. The interest of the markets to these publications was minimal, and only after the decisive speech of Yellen the dollar became more active. The value of gold and stock assets fell. Yellen’s mood regarding the US economic performance was surprisingly optimistic, despite the fact that some macroeconomic data came below expectations. Yellen paid a lot of attention to inflation indicators, as she noted that the Fed expects an increase in inflation in the coming months. The growth of inflation will have a positive impact on the US dollar, while a slowdown in its rate may nullify the possibility of a further rate hike this year. Continue reading

The dollar trades steadily: investors are cautious on the eve of the release of inflationary indicators

On Friday at the beginning of trading, foreign exchange market investors behaved cautiously, as today in the US will come out important inflation indicators.

Probably, these data will set the direction for the US dollar for the near future.

By the end of the trading week, the dollar lost its momentum against major currencies, especially against the yen. The Fed decided to slow down the tightening of monetary policy, although investors were counting on it, and this was what supported the currency. The release of economic indicators in the US, including basic inflation, retail sales and industrial production, will give investors a clearer picture of the Fed’s further actions regarding tightening of monetary policy this year. The dollar index remained at around 95.740, nevertheless, there is a probability of the week’s closing at 0.25% lower. 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

BREXIT gives the UK new hopes; The US comes out of the oil race

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

3 key releases for your trading opportunities

In the week ahead, there are a lot of fundamental news that are looking forward to, events that will give volatility and the numerous trading opportunities that they create. Let’s take a look at our top 3 choices:

  1. 1. Tuesday sees that the US issued a building permit. This figure represents the annual number of new residential permits issued in the previous month, which are expected to reach 1.274 million people. This figure is considered as a measure of future construction costs, which has far-reaching implications for the economy as a whole.Better than expected, the issue is likely to lead to the strengthening of the US dollar, since this figure implies that the increase in spending is on the horizon.  Continue reading

YOUGOV poll results led to a drop in the pound sterling

The GBPUSD rate fell yesterday despite strong bull attempts to counter this. The pair fell below 1.2800 against the background of the latest results of the YOUGOV poll, which indicates a decline in the popularity of the conservative party. Now they occupy only 16 seats, and it’s not enough for the majority. The results of the surveys may be erroneous, so traders will continue to closely monitor the situation, and the pound rate falls against the background of growing uncertainty in the markets.

Next, we will see key data publications out of Canada and the US.
In Canada, GDP will come out m/m, and this publication can radically change the trend of trading in Canadian markets, given the weakness of the national currency due to the cheapening of oil in recent times. Continue reading

The USD is rising again after a strong recovery last week

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