2020-12-07 • Updated
China published the better-than-expected trade balance, signaling the country’s steady recovery. The trade surplus surged to 75.4 billion dollars, while the forecast was 53.8 billion dollars. It was the largest monthly increase in the whole history of China! The strong trade growth can be linked with the severe lockdowns in other parts of the world. These countries need a lot of equipment for medical staff and ordinary people, which is made where? Of course, in China.
However, it isn’t so good as it seems. The widespread vaccinations will rotate the world’s demand for services as social-distancing restrictions will be canceled. As a result, the demand for China’s exports may be reduced. By the way, the Chinese yuan is showing the best performance against the US dollar since 2014. If it continues appreciating, one day China’s goods will be too expensive for overseas buyers. However, all these risks are log-long-term, and they may significantly impact the yuan only in the second half of the next year.
The short-term risk is Sino-American tensions. Donald Trump’s administration is planning to impose sanctions on Chinese officials over the Hong Kong crackdown. According to Steptoe and Johnson, “it’s unlikely the Biden administration will roll back sanctions that are politically popular in Washington. Trump-era sanctions could become sticking points in the US-China relationship for years to come”.
USD/CNH is moving in a downtrend. However, the price is touching the lower trendline and the lower line of Bollinger Bands, we can assume that the pair has the potential to rise to the resistance of 6.5800. The move above this level will drive the price to the high of November 11 at 6.6250. Support levels are 6.5000 and 6.4500.
Crude oil futures surged on Monday due to disruptions in Russian refining capacity caused by Ukrainian drone strikes and Moscow's decision to cut output to comply with OPEC+ targets. The West Texas Intermediate (WTI) contract for May settled at $81.95 a barrel, up $1.32, while the Brent contract for May settled at $86.57 a barrel, also up $1.32. Russia instructed...
Bearish scenario: Sales below 80.00 with TP1: 79.60... Anticipated bullish scenario: Intraday purchases above 80.70 with TP: 81.50...
Brent oil is currently on a bullish trend, facing resistance near $84 and supported by the 200-day EMA. Breaking above this level could lead to a climb towards $90. Short-term support is observed around $80, backed by the 50-day EMA. As summer approaches and travel increases, crude oil tends to benefit from seasonal patterns. Despite temporary setbacks, buying...
Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...
Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.
Bearish scenario: Sell below 1.0820 / 1.0841... Bullish scenario: Buy above 1.0827...
FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.
Your request is accepted.
A manager will call you shortly.
Next callback request for this phone number
will be available in
If you have an urgent issue please contact us via
Live chat
Internal error. Please try again later
Don’t waste your time – keep track of how NFP affects the US dollar and profit!
|
