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Varchev Finance: Trading day in one post 04.05.2018

Asian stock market: Asian markets are trading with declines. The Australian ASX is down 0.4 percent, Korean Kospi reported a 0.67 percent drop. Chinese markets were also dyed red. Hang Seng is down 0.35%, Shanghai composite and Shenzhen composite declined by 0.62% and 0.06%. The market in Japan remained closed today due to the national holiday of the country – Greenery Day.

 

FX Market: USD: It all comes about what today’s results from the change in average hourly wage. If they are above expectations .. welcome KingUSD. If they are not .. we will see our familiar situation .. EUR/USD in consolidation. From a technical point of view everything is built to appreciate the dollar. We have a breakthrough in the consolidated movement. The dollar index has gone over 200 times. The EUR/USD tested the breakthrough of consolidation and its 200 moving average. The FED confirmed that there will be 4 interest rises this year. Looking at the market is aimed at those data that are so desirable for USD Bulls to be above expectations. CAD: The Canadian dollar remains relatively strong. The high oil price supports the currency. The country’s economy is doing well, negotiations on NAFTA seem not to be as scary and restrictive as the market was thinking. If economic data from the country continues to exceed expectations, we may see another interest rate increase by the end of the year. For the moment we are positive about the Canadian dollar. GBP: Well, every trend is over. The tremendous medium-term upward movement of the pound ended pretty fast. According to market analyst estimates, the chances of raising the interest rate in May are only 20% (at the beginning of the year, they were over 85%). We expect the island currency to continue to depreciate against its main competitors in the medium term.

 

Commodities marker: Data today from the US will most likely be decisive for the direction that will take the price of gold. For now, despite the dollar’s rise, GOLD is not in a hurry to fall. The precious metal remains in its consolidation and over 200 moving average. While the price is locked between the $1370 and $1300 levels, it is more reasonable not to rush or enter into deals. Although the global environment has calmed down, investors are not in a hurry to pull capital out of the precious metal. OIL: Black Gold futures indicate a rise during the Asian hours. WTI traded a 3-cent rise at $68.46 a barrel, while Brent posted a 5-price rise and traded at about $73.67 a barrel.

 

European stock market: European indices will open in green. The German DAX will start the session with a 25-point increase around price ofv 12762 euros, the French CAC with a 5 point increase around the price of 5521 euros and the UKX UKX with a 1 point increase of around 7540 pounds.

 

US stock market: Despite the brutal sale we saw yesterday, following the closing of the European market, the US indices recovered their movement and practically finished the session in positive territory. Poor data from PMI in services was the cause of the index crash. And the 3 benchmarks reached up to 200 of their periodicals, the US30 made a significant fake breakthrough, and then came back over them, indicating that the bears did not have the strength to keep moving. We remain positive towards the US indices.

 

Economic calendar for the European and American trade sessions 04.05.2018

10:55 Germany – Services PMI
11:00 EU – Services PMI
12:00 EU – Retail sales
15:30 USA – Non-farm Payrolls
15:30 USA – Average hourly payment
15:30 USA – Unemployment rate
17:00 Canada – Ivey PMI
20:00 USA – Baker Hughes oil rig count



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