The market in the morning will focus on AUD with the release of the Retails sales report and later in the evening will be UK Service PMI which will create a huge volatility if the number are weak.
Markets Today: A strong and stable Yuan, a less stable plan for Brexit
Overnight we saw US stocks fall and bond yields up, but the real action has been in China with a weakening of the Renminbi reportedly kept under control by lots of buying from state banks. Read More @ https://business.nab.com.au/markets-today-a-strong-and-stable-yuan-a-less-stable-plan-for-brexit-30370/
Fitch warns President Trump’s trade fight could cost the world $2 trillion in global trade
Fitch Ratings on Tuesday warned that rising tensions between the U.S. and its trading partners could lead to new measures with a greater impact on global growth with as much as $2 trillion in global trade in jeopardy if President Donald Trump remains on a trade warpath.
“The U.S. investigation into auto tariffs, possible additional U.S. tariffs on Chinese imports, and the likely reactions of other countries and blocs, point to a potential serious escalation, albeit with an impact that falls short of across-the-board tariffs imposed on all major trade flows,” Brian Coulton, chief economist at Fitch, said in a report. Read More @ https://www.marketwatch.com/story/fitch-warns-president-trumps-trade-fight-could-cost-the-world-2-trillion-in-global-trade-2018-07-03
WHAT IS THE USD INDEX SAYING?
The USD struggles at $95; more downside expected movement forward for the USD. Ascending Triangle are getting a little too tight for a break today or tomorrow. Friday NFP will determine the next move for the USD. Today July 4th is a holiday in the US and couple with the WORLD CUP volume has dropped up to 40% across the market.
TODAYS NEWS THAT MGHT AFFECT YOUR TECHNICAL TRADES.
- 9.30am – AUD will go to action with retail sales – expected to be good. Same time Trade Balance data will also be released – WE BUY AUD.
- 9.45am – CNY will go to action with China releasing their CAIXIN Services – It’s a leading indicator of economic health – businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company’s view of the economy. Time to BUY CNY.
- 3.15pm – 4.00pm – EURO, SPAIN, ITALY, GERMANY and FRANCE will release their service PMI expected to be good across the board. We have moved from SELL EUR to BUY EUR.
- 4.30pm – GBP will have a huge volatility as the market awaits the SERVICE PMI – expected to be no change, we believe otherwise – to be good. WE BUY GBP.
The market will range after 9pm as US goes for holiday. Be cautious and always put Money Management as your number 1 priority.
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