Varchev Finance: Trading day in one post 09.02.2018

Trading day in one post



Asian Stock Market: Asian stock markets are trading with declines following Wall Street's negative closure. Japan's Nikkei traded with a 2.51% drop. Korean Kospi wiped out 1.63% of its value. Australian ASX also entered in negative territory with 0.89%. Chinese benchmarks are also red. Hang Seng fell 3.33%, Shanghai composite and Shenzhen composite wiped out 4.11% and 4.43% of their value.


FX market: USD managed to return some of its losses against its main competitors. The dollar index is traded above the psychological level of 90, indicating that the USD bulls are still strong. The dollar is currently traded at around 1.2250 against EUR and is approaching the diagonal support of the upward channel. If we see a break of the level, the bearish momentum of the pair will increase. The fact that the FED will raise the interest rate at least 3 times in 2018 already "hitting" the investors and the bears of the USD. The difference in interest rates between the US and the EU will become too great to be neglected. We expect the dollar to rise in the next few sessions and eventually start a medium-term upward trend in the US currency. GBP: The pound holds its upward momentum. M.Carney's comments for further interest rate rises this year back GBP. Currently, market analysts estimate the chance of raising in May at 75%. The Brexit talks are on the right path.. for the moment. We remain positive towards the pound, unless the negotiations on the separation of the island from the union do not take a negative stand. CAD: The Canadian dollar remains among the strongest currencies on the market. Economic data from the country show steady growth. At the next BoC meeting, we will understand what the central banker thinks about another interest rate hike by the end of 2018. The high oil price also contributes to the strength of the Canadian dollar.


Commodities market: GOLD is trading without major changes during the Asian session. We observe something strange on the market. Despite the collapse of the indexes by over 10% .. gold not only does not rise, but is dropping. The reason for this is the rising power of the dollar. However, we must not forget that the precious metal is used as a hedging instrument and can at any moment reverse its short-term downward trend. OIL: Oil futures indicate that black gold has declined during the Asian hours. WTI declined by 1% to $60.52 a barrel, and Brent wiped 1.1% of its value and traded at $64.81 a barrel. Recent Chinese data showed a record high import of oil in the country. OIL's rising demand will probably raise its price in the medium term. Considering this and the OPEC agreement on limiting oil extraction, we remain positive with OIL.


European stock market: European indices will start on the last day of the traded week with an increase. The German DAX will open 70 points up 12201 euros, the French CAC with a 25 point increase of 5125 euros and the UKX with a 23 point increase of 7,116 pounds. After the brutal sales in the last week, everyone is wondering .. is it over? For the time being, however, there are no technical indicators indicating that the bearish momentum is over. We remain negative for European indices.


US Stock Market: It's official.. S&P is in corrective territory. The US benchmark wiped out more than 10 percent of its value and traded over 250 points down from its peak on January 29. However, most market analysts are of the opinion that we should not be frightened. There are no indications of an ongoing crisis. The US economy remains strong. What we see is probably winning + multiplying the downward momentum by robots. We remain cautious towards the US indices, and we will seek signals to complete the corrective movement to get into long positions.


Economic calendar for the European and American trade session 09.02.2018

8:45 Switzerland - Unemployment rate
11:30 UK - Industrial production
11:30 UK - Manufacturing production
11:30 UK - Trade balance
15:30 Canada - Unemployment rate
20:00 USA - Baker Hughes oil rig count

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