Date: Feb, 08 – 2019.
The most important trade discussions for now will have the next round this week. U.S. and China will try to reach a deal.
The most important trade discussions for now will have the next round this week. U.S. and China will try to reach a deal for tariff increase on imports of Chinese goods by March 1.
U.S. Trade Representative Robert Lighthizer and China’s vice premier and chief trade negotiator, Liu He, will lead the next round of talks.
Trump noted that much work is still should be done to have a deal.
As noted the tariffs on $200 billion in imports from China are set to rise to 25% from 10% if no deal is reached by March 1.
However, this rising may be extended if the two sides were close an agreement.
EUR/USD is near the support level, interest rate decision pressure, U.S. – China trade war.
On the background of the news about U.S. and China trade war, the USD rose today and is near the highest point of the 2 weeks. The deadline of the trade war decision is planed on March 1 and this deadline probably will not be fullfiled.
This news tends to support the USD, investors choose this currency as a haven during the trade tensions.
The U.S. Dollar Index was at 96.387 as of 5:29 AM ET (10:29 GMT).
The situation with the Fed decision about rate increases is holding on the pause. This is have a pressure on the dollar and investors as well as recent Fed comments to supporting the rate hold have also a pressure effect.
Dallas Fed Chairman Robert Kaplan – one of the Fed’s more hawkish members – said in a speech Thursday that the stimulus from the 2017 tax cut is waning, while last year’s interest rate hikes haven’t yet had an effect on the economy.
“We would be well served and the country would be well served if we paused and were patient for some number of months and sort of get out of the way,” he said.
Date: Feb, 01 – 2019.
The market will be influenced by several reports today during the U.S. session.
Firstly, the U.S. jobs report for January will be published at 8:30 AM ET (13:30 GMT). However, the impact of this event will be probable weaker than expected due to the Federal Reserve’s decision this week to hold monetary policy steady.
Economists expect that NFP rose by 165,000 for the month and that the unemployment rate held steady at 3.9%.
A higher than expected reading on NFP should be taken as positive/bullish for the USD.
Secondly, the wage inflation will receive more attention with the average hourly earnings expected to post a monthly gain of 0.3% (A higher than expected reading should be taken as positive/bullish for the USD). The annualized rise is forecast to hold steady at 3.2%.
Thirdly, the Institute of Supply Management will post its manufacturing purchasing manager’s index (PMI) for January at 10:00 AM ET (15:00 GMT). The forecast is 54.2.
And University of Michigan will post the January consumer sentiment. This mesures is expected at 90.8.
Date: Jan, 30 – 2019.
Will a Brexit be disorderly or a delayed, or without Brexit
Theresa May came into conflict with the European Union due to the lawmakers decicion on Wednesday. They required providing renegotiation for Brexit divorce deal.
Thus, investors are looking for answer how the Brexit deal will end up, will a Brexit be disorderly or a delayed, or without Brexit.
May said she will looking for a “legally binding changes” to the divorce deal which was holded with the EU in November.
The France side said they need a “credible” British proposal. And there should not be a negotiations again.
European Council President Donald Tusk said the divorce deal was not up for renegotiation.
“Parliament at large signalled that it opposes a ‘no deal’ Brexit, but it is not ready to delay Brexit to rule out ‘no deal’ entirely,” Goldman Sachs (NYSE:GS) said.
“The Eurosceptic wing of the Conservative Party, by contrast, signalled that it opposes the prime minister’s Brexit deal, and it is ready to risk ‘no deal’ to re-negotiate the terms on offer.
Date: Jan, 24 – 2019.
Slowdown in the euro-zone economy. Mario Draghi will take a conference.
European Central Bank President Mario Draghi will take a conference after the ECB’s meeting of policy-making, that is the first in this year. The main reason for this events is a slowdown in the euro-zone economy in recent months.
Flash estimates published earlier Thursday displayed Germany’s manufacturing sector contracted in January.
Purchasing Managers Index of euro-zone stayed above the 50 level. This stability signals expansion.
The first rate hike since 2009 is expected towards the end of this year. And there is no expectations for policy changing. However, market is looking for a opportunity for rate hike pushing back further.
The EUR/USD is trading at 1.1348, as a result of down movement from 1.1393 with the lowest point at 1.1329.
Date: Jan, 21 – 2019.
British PM May will have a speach today about the ‘Plan B’ for Brexit.
British Prime Minister Theresa May will have a speach today and probably state about the ‘Plan B’ for Brexit to lawmakers.
The deadline of the European Union leaving will be closed on March 29. British PM hope to secure an agreement and propose a motion in parliament about her next steps according to the Brexit plan.
Lawmakers will be able to process the motion and propose amendments to it, assuming an alternatives to this deal.
May decided to make a deal through parliament after 402 lawmakers in the 650-seat parliament last week rejcted her Brexit divorce deal.
The U.K. shall to leave the world’s biggest trading market in 2 months but doesn’t have any solution and agreement about how to complete this process.
GBP/USD is rading at 1.2870 level under uncertainty.
Date: Jan, 17 – 2019.
Positive trend for USD. The dollar rose against major currencies.
Positive trend for USD. The dollar rose against major currencies. The U.S. dollar index was up at 95.80.
Investors is waiting for a signals from Fed after a growing number of its officials expressed caution about further rate hikes. U.S. government shutdown affect on the market and makes a beaviour subdued.
“There’s a lot of speculation that we’ve seen the end to the rate-hike cycle and many people are even talking about rate cuts this year,” said Bart Wakabayashi, Tokyo branch manager at State Street Bank.
“The immediate (impact) is going to be the messaging from the Fed plus, of course, their action,” he said. “If we’re assuming that the market is still long dollars, any sort of change in that is going to have a pretty lasting effect.”
The next meeting of Fed is assigned on Jan. 29-30.
The Fed said on Wednesday in a report on the economy that
businesses across the U.S. have become less optimistic in recent months.
According to the strengthened JPY against USD, USD/JPY down at 108.76.
EUR/USD down at 1.1386 as persistent worries about the euro zone economy weighed.
European Central Bank head Mario Draghi warned on Tuesday that economic developments in the euro zone have been weaker than expected.
The pound was also weaker against the dollar, with GBP/USD down to 1.2857 as uncertainty over Brexit intensified.
“Nothing has happened in the last 24 hours to dissuade us from the view that we are headed in the direction of an Article 50 delay, a softer Brexit or no Brexit,” said Ray Attrill, head of FX strategy at NAB.
Date: Jan, 08 – 2019.
The U.S. dollar recovering while meeting between China and U.S. and U.S. interest rates prediction
The U.S. dollar recovered last losses on the last week. The EUR/USD is trading at 1.14480.
The 2-days meeting between China and U.S. in Beijing is wrapping and investors are waiting for a news about progress on reaching an agreement.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, rose to 95.41. The USD/JPY got a point of high 108.82 but it is trading at 108.77.
The dollar fell on Friday due to the reply by Jerome Powell (Federal Reserve Chairman) about the Fed intentions to act “quickly” if market concerns outweigh the strong economic data. Investors got confidence that the Fed will not raise interest rates this year.
“The Fed is listening to the market and has acknowledged flashing market signs,” said Sim Moh Siong, currency strategist at Bank of Singapore.
“U.S. inflation has been well behaved so far and so the Fed does have room to pause on its rate hike cycle,” he added.
Date: Dec, 24 – 2018.
The work of the bank during the New Year holidays.
AccentForex would like to notify you that bank payments will work until December 28th inclusive in December. In 2019, a bank transfer will be available from January 8th.
Date: Dec, 24 – 2018.
AccentForex work schedule during Christmas and New Year
We would like to inform you about the Broker’s working schedule during the holidays.
Since Christmas in 2018 is on Monday-Tuesday (24-25 of December), then the market will be closed earlier on December 24, at 21:00 (terminal time). The market will be fully closed on Tuesday, December 25, and on Wednesday the opening will take place at 8:00 (terminal time).
On the New Year holidays, the market will be closed earlier on December 31, at 21:00 (terminal time). Since January 1 is a public holiday, the market will be closed on this day. The opening of the market is planned for January 2, 2018 at 8:00 (terminal time).
The AccentForex team wishes you a Merry Christmas and a Happy New Year.
Date: Dec, 17 – 2018.
The possibility of ruling out the Second Referendum in UK.
The British Prime Minister Theresa May was expected to share to parliament her oposite opinion about a 2nd referendum for Brexit.
Another ballot “would do irreparable damage to the integrity of our politics, because it would say to millions who trusted in democracy, that our democracy does not deliver,” Theresa May will say, according to prepared remarks released in advance.
The Brexit remains in the no clear situation according to growing calls for a no-deal exit. The business is afraid of a huge damaging by potentially disorderly divorce.
The pound is trading at 1.2610 (GBP/USD).
Date: Dec, 14 – 2018.
Investors are waiting for a retail sales for November (U.S) today.
Investors are waiting for a retail sales for November (U.S) today.
The consensus forecast is that the report will show retail sales rose 0.1% last month, after a 0.8% increase in October. Excluding the automobile sector, sales are expected to increase 0.2%.
U.S. stronger economic is depending on growing retail sales and vise versa, weaker sales effect the declining economy.
Moreover, the Industrial Production for November at 9:15 AM ET (14:15 GMT) and preliminary purchasing managers’ indices for the manufacturing and services sectors in December from IHS Markit at 9:45 AM ET (14:45 GMT) will effect market today.
The forecast for The Manufacturing Purchasing Managers’ Index (PMI) is 55.1% that will show an expanding of manufacturing sector.
The previous Industrial Production is 5.6% and for now it is 4.1%, so the last time this indicator was bearish for USD.
Date: Dec, 04 – 2018.
Dollar fell under the influence of bond market
The dollar is under pressure of U.S. bond yields dropping.
USD fell to the week low point against major currencies.
The U.S. dollar index was down to 96.38, the lowest level for the last week.
The dollar fell to 112.75 against the yen (USD/JPY).
The euro was higher against the dollar (EUR/USD). The currency pair is trading at 1.1410.
The pound also gained ground to 1.2810 (GBP/USD), after falling below the 1.27 level on Monday.
Date: Nov, 23 – 2018.
Black Friday rush and stocks
Investing – Investors pay attention to retail stocks during the Black Friday sales. The US futures will have a lower opening on Friday.
The S&P 500 futures fell 0.43% to 2,637.50 and Dow futures fell 0.55%, to 24,3310. Meanwhile tech heavy Nasdaq 100 futures lose 33 points, to 6,542.75.
The stock market was closed yesterday and it will be closed at 1:00 PM ET (18:00 GMT) today.
With no earnings on tap, investors will be watching retail stocks for reactions to the promotional activities after a lower-than-expected earnings session for the retail sector.
Technology stocks were among the hardest hit, with the FAANG group of companies falling. Facebook (NASDAQ:FB) fell 0.94% while Apple (NASDAQ:AAPL) was down 1.04% and Amazon.com (NASDAQ:AMZN) inched down 0.77%
Date: Nov, 15 – 2018.
The British pound fall while UK Brexit Minister Dominic Raab resigned
The British pound fall while UK Brexit Minister Dominic Raab resigned. This news was a really significant for market and make it falling to 1.2750. After that the Theresa May’s proposed Brexit deal came under uncertainty about its approval by parlament.
The GBP/USD is trading at 1.2832 (a small correction);
What about EUR, The currency pair EUR/GBP jumping 1.1% to 0.8804 well above the five-month lows of 0.8655 reached on Tuesday.
Raab, in a letter to the prime minister, said he cannot support terms of her draft Brexit plan.
“For my part, I cannot support the deal for two reasons,” Raab said in his letter. “First, I believe that the regulatory regime proposed for Northern Ireland presents a very real threat to the integrity of the United Kingdom.”
“Secondly,” he added, “I cannot support an indefinite backstop arrangement, where the EU holds a veto over our ability to exit.”
Date: Nov, 14 – 2018.
The United States and China resumed negotiations at all levels.
In anticipation of the meeting between President Donald Trump and China’s Xi Jinping, the states resumed trade contacts.
U.S. sets strict requirements, but there is no exact answer, whether China will cede the conditions. However, Kudlow said – “it’s better to talk than to not talk” in an interview on CNBC Tuesday. The Chinese negotiator, Liu He, is scheduled to arrive in Washington for informal talks. This information was confirmed by Commerce Secretary Wilbur Ross.
“We are talking to them again,” Kudlow said. “We’re having communications at all levels of the U.S. and Chinese government” to prepare for the Group of 20 leaders’ summit in Argentina, taking place Nov. 30-Dec. 1. Kudlow added that he won’t make a prediction on the outcome of discussions.
The first 6-month telephone talks took place between Trump and Xi two weeks ago. After that, a telephone conversation followed between Treasury Secretary Steven Mnuchin and Liu.
U.S. stocks struggled to hold early gains on Tuesday after oil prices slumped, just as hopes were rising for progress in the American-China trade dispute. Trump is committed to achieving greater trade balance between the US and its allies. Therefore, new rates for cars, probably will not be introduced.
“We are willing to negotiate with the U.S.,” Chinese Premier Li Keqiang said. In his opinion, the United States and China have enough wisdom to “be able to find a solution that is acceptable to both sides.”
A prerequisite for successful negotiations is the mutual respect of the parties. “As long as we respect each other’s core interests and major concerns, we will be able to contain and resolve the disputes,” Li said.
The Trump administration has said that it wanted a substantive response to a long list of demands for what it calls “structural” changes in Chinese industrial policy. Trump has rejected deals negotiated by aides such as Mnuchin and Ross that were focused on increasing purchases rather than substantive reforms.
Date: Nov, 01 – 2018.
Brexit. The monetary policy of the Bank of England. UK and EU finance deal.
EU and UK are close to a deal that will allow UK financial services companies based to have some access to European markets after Brexit. This news makes GBP rose more than 1% today.
GBP/USD is trading at 1.2886 with the highest poind of 1.2919 today.
Brexit affects the monetary policy of the Bank of England. The latest interest rate decision was accepted and the bank widely expected to keep monetary policy on hold.
Sterling rose to one-and-a-half week highs against the euro, with EUR/GBP down to 0.8812.
The euro was higher against the softer dollar, with EUR/USD advancing to 1.1378.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was down to 96.35 after gaining 2.28% in October.
The dollar was little changed against the yen, with USD/JPY changing hands at 112.86.
Date: Oct, 29 – 2018.
Forex: Dollar became higher against a basket of the other major currencies on Monday
The USD became higher against a basket of the other major currencies on Monday, reached close to Friday’s 10-week highs. Investors are worried about following weekend elections in Germany.
Friday data U.S. show that the economy slowed less than expected in the third quarter. This fact affects USD in positive way.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, edged up to 96.26.
The latest trends and news about global economy health, trade wars, Italy budget row, U.S. interest rates rising and Brexit have contributed to an atmosphere of mounting risk aversion. However, Forex movements is still slower than stocks.
EUR/USD dropped to 1.1390 following a setback for German Chancellor Angela Merkel’s coalition government in regional elections on Sunday.
The pound was lower against the greenback, with GBP/USD off 0.13% at 1.2812 as investors awaited the autumn budget statement from British Chancellor Philip Hammond.
Date: Oct, 26 – 2018.
Dollar, Yen Rise and U.S. GDP expectations
The U.S. dollar index that tracks the greenback against other currencies rose to 96.41. The index hit a two-month high on Thursday.
USD and YEN rose when US stocks rebounded to positive, but Asian equities is still in red territory. The USD/JPY is trading at 112.05.
“The risk sentiment is still quite fragile. Overnight, we had Amazon (NASDAQ:AMZN) and Alphabet (NASDAQ:GOOGL) declare results which were not that cheerful. I expect the yen to re-test its recent highs,” said Sim Moh Siong, currency strategist at Bank of Singapore.
The USD/CNY pair is trading at 6,9451 as the People’s Bank of China set the yuan reference rate at 6.9510 vs the previous day’s fix of 6.9409.
Moreover, the Aussie dollar is become lower due to the yuan movement. AUD/USD is trading at 0.7030.
Investors are waiting for upcoming U.S. third-quarter GDP data because it can give a reasons for further signs if we are close to peak earnings for U.S. corporates.
Traders expect a potentially strong reading of U.S. gross domestic product data today and prodict the dollar rise.
“Today’s robust U.S. GDP will illustrate to the market the deep division between the U.S. and the euro zone when it comes to growth performance,” said Commerzbank (DE:CBKG) analyst Thu Lan Nguyen.
The rates is expected to rose in december (Fed).
Date: Oct, 16 – 2018.
Forex: Dollar – Yen rebounded from 1-Month Lows
The dollar rebounded from one-month lows against the yen on Tuesday as a selloff in global equities markets eased, while the New Zealand dollar pushed higher after upbeat inflation data overnight.
USD/JPY is trading at 112.13 after the price of 111.61 on Monday.
While Asian stock markets rose overnight, investors have reduced interest in the Japanese currency.
Stock markets have been hard hit after U.S. Treasury yields soared to their highest level since 2011 last week amid expectations that the Federal Reserve will keep raising interest rates, eroding the value of equities.
Moreover, the difficult situation with the global economy also has an impact on the activity of investors and contributed to the selloff. Rising oil prices also have a significant impact.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, dipped to 94.70.
The euro pushed higher, with EUR/USD to 1.1592, but gains were held in check after Italy’s populist government approved its new budget, despite criticism from Brussels that it is in breach of European Union fiscal rules.
Date: Oct, 10 – 2018.
The UK economy trend grew by 0.7% on a quarterly basis
The UK economy trend grew by 0.7% on a quarterly basis and the pound trimmed back gains against the USD today at this background. UK economy has a flat in August.
GBP/USD is trading at the 1.3155 level after the highest point of 1.3184
The Office of National Statistics said the economy grew 0.7% in the three months to August, picking up from the 0.6% expansion seen in the three months to July.
According to the report the retail trade and wholesale have a strong growth.
“The economy continued to rebound strongly after a weak spring, with retail, food and drink production and housebuilding all performing particularly well during the hot summer months. However, long-term growth continues to lag behind its historical trend,” ONS head of GDP Rob Kent-Smith said.
GDP was revised up to 0.4% from a previously reported 0.1% in the previous month.
EUR/GBP is trading at the 0.8737 level near the lowest point of 0.8723
Date: Oct, 05 – 2018.
The global trending on the Stock market and Oil this week
(Reuters) Global stocks wobbled on Friday, with Wall Street poised to open lower as increased Treasury yields weighed on markets.
The S&P 500 futures fell 0.12% while Dow futures lost 0.08% and tech heavy Nasdaq 100 futures decreased 0.27%.
Italy crisis and rising benchmark yields continue to worry investors and this factors effect the Europe trading.
Meanwhile in Asia, stocks closed in the red. In Hong Kong, the Hang Seng closed down 0.19% while in Japan, the TOPIX dipped 0.47% and the Nikkei 225 lost 0.58%.
On mainland China, indexes were closed for the week for a national holiday.
Oil prices were slightly higher on Friday as upcoming U.S. sanctions on Iran weighed on the market’s supply outlook and traders looked ahead to weekly rig count data.
The sanctions are due to take effect November 4 and have already caused Iran’s crude exports to fall.
Date: Oct, 03 – 2018.
The five-day fall of the euro ended today
Today, the five-day fall of the euro ended and the currency turned into growth. Investors have responded to Italy’s plans to reduce their budget deficit starting in 2020.
The EUR/USD currency pair rose to 1.1573, retreating from a month and a half of 1.1504 recorded on Tuesday.
The Italian newspaper reported that the country’s populist government is going to reduce the state budget deficit for 2020 and 2021 to 2.2% and 2%. At the same time, the government does not intend to abandon the planned for 2019 budget deficit of 2.4%.
Today, a government meeting will be held at the head of the Italian Prime Minister Giuseppe Conte. During the meeting, the current situation in the country will be discussed. Italy should send the budget project of the country to the EU supervisory authorities until mid-October.
Date: Oct, 01 – 2018.
Facebook (NASDAQ:FB) Reports Major Data Breach
Facebook notifies about a major security breach on Friday. The social media service said that hackers got an access to the logins for as many as 50 million accounts.
This news can effect Facebook position on the shares market. Facebook shares has already fell 0.89% to $163.00 in premaket trading after closing at $164.46 on Friday.
Moreover, Facebook could be fined by the European privacy regulator, Ireland’s Data Protection Commission (DPC). They can charge up to $1.63 billion from Facebook company.
The breach follows the controversial Cambridge Analytica scandal and allegations that Russia used the platform to influence U.S. elections.
meeting between Donald Trump and Jean-Claude Juncker
Investor sentiment is somewhat cautious ahead of a meeting between U.S. President Donald Trump and European Commission President Jean-Claude Juncker at the White House this afternoon.
There has come a period of lull in the markets and investors are acting cautiously, before the meeting.
Thus, these negotiations are quite an important political and economic event and can affect the market.
Earlier, Trump had already reduced tariffs on steel and aluminum imports from the EU and had threatened to extend the rates to the European auto sector. Further action would entail retaliatory actions from the EU.
Ahead of the talks Trump tweeted that tariffs are “great”, and claimed the U.S. is being treated as a “piggy bank” by countries who run a trade surplus with it.
He also called for both sides to completely abolish tariffs, subsidies and other trade barriers.
Date: July, 02 – 2018.
The European Securities and Markets Authority (ESMA) has formally adopted new measures on the provision of CFDs and binary options to retail investors.
The measures have been published in the Official Journal of the European Union (OJ) today. They will start to apply from 2 July 2018 for binary options and from 1 August 2018 for CFDs and will apply as follows:
1. Binary Options (from 2 July 2018) - a prohibition on the marketing, distribution or sale of binary options to retail investors;
2. Contracts for Differences (from 1 August 2018) - a restriction on the marketing, distribution or sale of CFDs to retail investors. This restriction consists of: leverage limits on opening positions; a margin close out rule on a per account basis; a negative balance protection on a per account basis; preventing the use of incentives by a CFD provider; and a firm specific risk warning delivered in a standardised way.
ESMA has adopted these measures in the official languages of the EU and they will remain in force for a period of three months from the date of application.
CFDs – measures from 1 August 2018
The product intervention measures ESMA has adopted under Article 40 of the Markets in Financial Instruments Regulation include:
- Leverage limits on the opening of a position by a retail client from 30:1 to 2:1, which vary according to the volatility of the underlying:
- 30:1 for major currency pairs;
- 20:1 for non-major currency pairs, gold and major indices;
- 10:1 for commodities other than gold and non-major equity indices;
- 5:1 for individual equities and other reference values;
- 2:1 for cryptocurrencies;
- A margin close out rule on a per account basis. This will standardise the percentage of margin (at 50% of minimum required margin) at which providers are required to close out one or more retail client’s open CFDs;
- Negative balance protection on a per account basis. This will provide an overall guaranteed limit on retail client losses;
- A restriction on the incentives offered to trade CFDs;
- A standardised risk warning, including the percentage of losses on a CFD provider’s retail investor accounts.
MiFIR gives ESMA the power to introduce temporary intervention measures on a three monthly basis. Before the end of the three months, ESMA will review the product intervention measures and consider the need to extend them for a further three months.
Date: June, 25 – 2018.
Trade war between the US and China. The situation is heating up.
Trump threatened to raise the tariff to 20% for all cars that are imported from the Euro zone on Friday.
The EU promised to respond to this step.
Investors and traders are worried that threats of higher U.S. tariffs and retaliatory measures by others could derail a rare period of synchronized global growth.
At the moment, Trump renewed his call for “fair trade” that reduced barriers to entry. Trade conflicts between the US and the rest of the trade participants could lead to a trade war with China and the EU.
Here’s the message that Trump posted on Twitter:
“The United States is insisting that all countries that have placed artificial Trade Barriers and Tariffs on goods going into their country, remove those Barriers & Tariffs or be met with more than Reciprocity by the U.S.A. Trade must be fair and no longer a one way street!”
U.S. plans limits on Chinese investment in U.S. technology firms.
WASHINGTON (Reuters) – The U.S. Treasury Department is drafting curbs that would block firms with at least 25 percent Chinese ownership from buying U.S. companies with “industrially significant technology,” a government official briefed on the mattersaid on Sunday.
Such restrictions will mean that the situation between the US and China is becoming even more intense in the face of a trade war.
Tariffs on $34 billion worth of Chinese goods, the first of a potential total of $450 billion, are due to take effect on July 6 over U.S. complaints that China is misappropriating U.S. technology through joint venture rules and other policies.
Such restrictions are aimed at key sectors of trade policy. Including, “Made in China 2025″ industrial plan, the U.S. official said.
The Wall Street Journal also said the U.S. Commerce Department and National Security Council were proposing “enhanced” export controls to keep such technologies as (information technology, aerospace, marine engineering, pharmaceuticals, advanced energy vehicles, robotics and other high-technology industries) from being shipped to China.
This is to ensure that China’s plan is limited to US technology.
Date: May, 28 – 2018.
Euro influenced by Italian Politics
EUR/USD has reached a goal to a minimum of 1.1596 due to the unclear situation in the political arena in Italy. The prospect of fresh elections in Italy dampened sentiment
The single currency initially rallied to as high as 1.1733, as Italy’s populist parties abandoned their bid to form a coalition government after the country’s President Sergio Mattarella blocked the nomination of a euro sceptic finance minister.
Investors had feared that the coalition could endanger Italy’s membership in the euro zone.
Now the market is expected to react to a minimum in price. A good news background in the Eurozone is expected on Tuesday, May 29.
Date: April, 24 – 2018.
Dollar rose this week
April 24, the dollar rose against the major currencies amid rising yields on US Treasury bonds.
The US dollar index, which shows the purchasing power of the dollar to the trade-weighted basket of six major currencies, was at position 90.70 after rising at night trades to 90.84 – the highest since March 1.
Yesterday, the yield of US ten-year government bonds reached 2.998% due to an increase in the probability of rising inflation and an increase in the Fed’s interest rate.
The EUR/USD rate reached support in the level of 1.2200.
The dollar’s exchange rate peaked in ten weeks against the yen. The pair USD/JPY rose to 108.87.
It should be noted that demand for the yen has decreased against the background of a weakening of geopolitical risks and tensions in international trade.
The pound fell against the dollar: the pair GBP/USD was trading at 1.3932 due to doubts that the Bank of England will raise the interest rate next month.
An additional factor in the decline of the pound is the growing uncertainty about the results of Brexit before the report on the growth of the British economy, which will be published on Friday.
Date: April, 16 – 2018.
Dollar and Strikes on Syria
The US currency becme lower against currency basket on Monday. U.S.-led missile strikes on Syria on Friday lead to a broader escalation in the conflict there than expected.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was down 0.3% to 89.24.
Russia didn’t response after a missile strikes on Syria. Markets are waiting for any signs of immediate military escalation of the conflict. The situation strongly effects on the market beavior.
U.S. prepared to announce a fresh round of economic sanctions on Russia after chemical-weapon attack on Syria.
The military strikes were made in response to a chemical-weapon attack on civilians in Damascus and were the largest intervention yet by Western countries against Syrian President Bashar al-Assad.
Date: April, 02 – 2018.
The U.S. Labor Department will release the nonfarm payrolls report for March
(at 8:30 AM ET (12:30GMT) on Friday)
Let’s analyze the main points of this event.
The forecast is as follows:
jobs growth of 198000, after adding 313000 positions in February and the unemployment rate will fall to 4.0% from 4.1%. In addition, the forecast for wages is expected to increase from 2.6% to 2.7%;
This trend directly affects inflationary pressure and wage growth will increase this pressure. Inflation, in turn, affects the tendency of raising rates from the Fed.
At the moment, Fed follows the policy of two more interest rate hikes this year.
This week’s calendar also features reports on ISM manufacturing and service sector growth, ADP private sector payrolls, auto sales, construction spending, trade figures as well as factory orders. In addition, it is worth paying attention to the performance of several Fed speakers this week.
Today and Tomorrow: FOMC Member Kashkari Speaks
Tomorrow: FOMC Member Brainard Speaks
April, 4: FOMC Member Bullard Speaks, FOMC Member Mester Speaks
April, 5: FOMC Member Bostic Speaks
Friday: Fed Chair Powell Спеакс
Elsewhere, news out of Washington D.C. is expected to keep investors on their toes, as they watch further developments amid a brewing trade war between the U.S. and China.
Date: March, 14 – 2018.
Google is going to put restrictions to crypto ads
Alphabet Inc’s Google (NASDAQ:GOOGL) said on Wednesday it will ban ads for cryptocurrencies and related content also starting in June.
According to a new policy, Google inc explained that it will ban ads for unregulated or speculative financial products like binary options, cryptocurrency and financial spread betting among others.
Should be noted that this news was combinated with downward pressure in the cryptocurrency market on Wednesday.
Bitcoin, the world’s biggest virtual currency by market cap, was down around 1.1% to $9,097.50.
Other major cryptocurrencies were also lower, with Ethereum, the world’s second largest cryptocurrency by market cap, falling about 1.7% to $689.11.
The third largest cryptocurrency Ripple lost roughly 7% to trade at $0.77531.
Date: March, 12 – 2018.
U.S. added 313,000 jobs. Investors disappointed because of wage slow growth.
USD ranked slightly lower compared to other major currencies today. The beginning of the week after the NFP so that markets can handle this event.
U.S. economy added 313,000 jobs last month, according to the Labor Department report on Friday. The forecast was 200,000 jobs. It is worth noting that this is a strong trend, which strengthened the state of USD.
But investors were once again disappointed because of a decrease in probability of the four rate hikes by the Federal Reserve this year, as wage growth turned out to be too slow (+ 0.1%). (now 2.7%, which shows a decrease against 2.8% in January).
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.08% at 90.04 by 06:05 a.m. ET (10:05 GMT), off Friday’s one-week high of 90.36.
The euro and the pound were higher, with EUR/USD up 0.18% at 1.2329 and with GBP/USD adding 0.13% to 1.3871.
Date: Feb. 27 – 2018.
The report of Fed Chairman Jerome Powell
The report of Fed Chairman Jerome Powell will be today. This will be his first official appearance on the Capitol Hill after taking the oath of office to head the Fed earlier this month. The dollar is getting cheaper on the back of expectations.
The US dollar index, which shows the purchasing power of the dollar to the trade-weighted basket of six major currencies, fell to 89.66.
On a large scale, the dollar strengthened and took the position at the bottom of the uptrend. Any signals that the Fed is leaning towards a faster rate of interest rate increase this year can affect the recovery of the dollar from a minimum in three years.
Investors also expect the set of US economic reports this week, including US consumer confidence index, updated data on fourth-quarter economic growth, industrial production, as well as data on income and expenditure of individuals.
Date: Feb. 14 – 2018.
Inflation news US and the U.S. dollar index down
The US dollar has reached the minimum weekly value today and is trading with EUR at 1.2350 now. The decline is due to the fact that the mood of the USD remains vulnerable before the release of data on inflation in the US.
Investors are watching and forecasting an upcoming report on U.S. consumer price inflation data, which will take place today at 8:30 a.m. GMT-5
Today we will be able to find out how fast the Federal Reserve will raise interest rates this year.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.19% at 89.43 by 02:05 a.m. ET (06:05 GMT), the best since February 6.
Date: Feb. 12 – 2018.
News of the week’s start and the results of investors’ fears since Friday.
The US dollar began the week with a price reduction. At the same time, Asian stock exchanges stabilized after a sell-off last week. This process caused a decline in demand for the American currency.
But, the dollar increased last week. The US Congress adopted a two-year budget agreement before the end of the brief government shutdown on Friday.
The agreement is set to boost federal spending by almost $300 billion and suspend the debt ceiling for a year.
The indices of the exchanges of Hong Kong and mainland China rose, as well as futures on Wall Street. It should be noted that the Nikkei is not traded because of the national holiday in Japan.
The indices of US stock exchanges showed rather poor results by the end of last week, despite the growth on Friday. This collapse occurred because of fears of investors about accelerating inflation.
Market players are waiting for the publication of an inflation report in the US on Wednesday. If inflation indicators are higher than forecasts, a new collapse may occur in the markets.
The head of Brexit talks from the EU, Michel Barnier warned that an agreement on the UK’s exit from the EU has not yet been achieved and may not be achieved at all. This statement led to a decrease in the price of the pound against the US dollar on Friday.