After turbulent year, Trump extending ‘open hand’ for cooperation – leaders is being question – dollar goes under pressure but can FOMC save the USD?
UK MOVE TO CHINA FOR CO-OPERATION
When Theresa May lands in China on Wednesday it will be the first official visit by a British Prime Minister in five years. The last was by her predecessor, David Cameron, in 2013, when he arrived with 120 businesspeople. That was described at the time as Britain’s “biggest ever” trade delegation, befitting Cameron’s equally grand economic target of doubling the volume of UK-China trade by 2015.
Trade has increased – but by nowhere near that amount. Cameron’s trip was, though, the first tangible step in what, by 2016, was being described as a “golden relationship” of bilateral trade. Now, with the countries’ plethora of trade deals as yet undelivered, that relationship is reported to be in jeopardy this week over Beijing’s insistence that May’s government give official endorsement to China’s trillion-dollar Belt and Road Initiative (BRI). UK should make the moved and the USD will go further under pressure and the demand for YUAN is only going to get stronger and China is ready for a strong Yuan @ http://www.atimes.com/article/china-uk-spat-brewing-mays-belt-road-caution/
USD INDEX TECHNICAL CHARTS STAYS DOWN AND UNDER PRESSURE
TODAY’S NEWS THAT MIGHT AFFECT YOUR TECHNICAL CHARTS
- 8.30am – Australia CPI remains firm at 0.6% and looks its only going to be back stronger – we maintain BUY for AUD & GOLD.
- 8.53am – China data stayed firm and China USDCNH is continued selling for us.
- 10.00am – President state of the union address – USD will goes up & down but ultimately down as he moves toward “MAKE AMERICA STRONG AGAIN & PROTECTIONISM” – We see much more dovish then hawkish later.
- 1.00pm – Japan will release Consumer confidence – we are for SELL USDJPY. Japan is back on their feet and their are moving forward.
- 3.00pm – German will release their Retail Sales data (we are expecting to be above the previous month), immediately after that French & Spain will release their CPI and we believe is going to be good – We maintain BUY for EURUSD.
- 4.55pm – German will release their unemployment – it should be good for EUR.
- 6.00pm – Volatility time – expect some good movement on the EUR pairs when EURO-ZONE release their CPI data which is expected to be good; QE focus and EUR looks good for next phase of rally.
- 9.15pm – ADP – we expect the same or weak data – we maintain SELL for USD and BUY for Gold.
- 9.30pm – Canada will release GDP data and we believe is going to be good – we maintain SELL for USDCAD & BUY OIL.
- 11.00pm – Pending home sales (FED Economic Leading Indicator) – We expect no change on the data.
- 11.30pm – If you are trading OIL – be ready for a another rally for oil as we are expecting inventories at the lowest level.
- 3.00am (Thursday morning) – Be ready for volatility and we will close all position and remain sideline till the volatility settles down. We are expecting the FED to announce about march rate hike which will make no difference as the market already price in the data.
News are important to understand as it will temporary affect your technical charts and you could use limit orders to handle pending orders, Do remember always put money management as your priority.
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