Hong Kong stock index extended a decline sparked by China’s tech crackdown. Tesla posted better-than-expected results. Jump in!
Daily News: Wednesday, March 7
White House economic adviser Gary Cohn announced his resignation. Mr. Cohn’s free trade policy does not combine with Trump’s tariffs on steel and aluminum. Markets reacted to this news. Let’s see.
- Asian stocks and US stock futures declined. S&P 500 Index futures plunged over 1%.
- Bonds declined as well. The yield on 10-year Treasuries fell more than three basis point.
- The JPY is rising again based on the Cohn’s resignation. USD/JPY reached the support at 105.5 but could not break it. Now the pair is trading near 105.7.
- Oil fell based on the expansion of US crude production and risks of the US metal tariffs. According to the report of the American Petroleum Institute, the U.S. crude inventories rose by about 5.7 million barrels. WTI appeared below $62 a barrel. Brent was near $65. However, now WTI and Brent are trying to recover.
- The Aussie fell after the three-day strengthening because of the bad GDP data. The actual figure is lower than expected (0.4% vs 0.5%). The AUD/USD pair climbed to the resistance at 0.7828 but could not break it. The support lies at 0.7710.
- According to a Reuters poll, the greenback will not be able to strengthen until the Fed raises interest rates at least 5 times. The hawkish mood of the Fed will not be able to support the greenback. The fiscal stimulus will be the major factor that will influence the dollar. The budget and the current account deficits are supposed to increase in next years and reach levels that will negatively affect the dollar in the medium- to long-term.
- Negative forecasts on the dollar’s growth support the euro. The euro is improving its positions. The EUR/USD pair has reached the resistance at 1.2435, if it is able to hit it, the euro will continue to go further.
- More news on the US tariffs. The White House is considering the opportunity to put down Chinese investments in the USA and imposing tariffs on a broad range of its imports.
The overall market sentiment is risk-on. The S&P 500 index (US 500) is getting close to the all-time high. Oil is recovering quickly from its recent losses.
PMI reports from the EU, the UK, and the USA will be released during the day!
The Fed held a much-awaited meeting yesterday. The bank hasn’t made any policy changes. As a result, the USD weakened and EUR/USD rocketed. Jump in to know all the latest news!
What will happen? The US Q2 Gross Domestic Product will be announced at 15:30 MT time (GMT+3) on Thursday, July 29…
Today the Fed will make a policy statement at 21:00 GMT+3. This event will affect all the currency pairs with the USD and thus almost the all Forex market!