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

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

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

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

Elections in the UK, release from the Reserve Bank of Australia and the ECB press conference: how will the currency rates change this week?

This week will bring a lot of fundamental news that will cause market fluctuations and create excellent trading opportunities for traders. We identified 3 main events of this week:

1. The Reserve Bank of Australia will release their Cash Rate and Rate Statement on Tuesday. The interest rate charged for the transfer of overnight transactions between financial companies, according to preliminary forecasts, will remain unchanged: 1.50%. Such a result is laid in market prices, therefore any surprises will lead to fluctuations in the national currency rate: the rate hike will help the Australian dollar to grow, and the reduction will help it to fall. The decision on the interest rate will indicate the views and concerns of the RBA. Continue reading