Asia stocks off record highs as Wall St. flags, higher yields support dollar.
Asian stocks retreated from record peaks on Tuesday after a selloff in Apple shares knocked Wall Street, while the dollar found support as U.S. bond yields climbed to near four-year highs. MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was down 0.3 percent after rising to a record high the previous day. Australian stocks shed 0.65 percent, South Korea’s KOSPI .KS11 lost 0.3 percent and Japan’s Nikkei .N225 dropped 0.5 percent. The bearish sentiment in Asia followed a softer lead from Wall Street, which has led a global equities rally over the past year thanks to strong world growth fuelling higher corporate earnings and stock valuations. Read More @ https://www.reuters.com/article/us-global-markets/asia-stocks-off-record-highs-as-wall-st-flags-higher-yields-support-dollar-idUSKBN1FJ03A
THE THREAT OF USD GOING TO THE SOUTH REMAINS. WE MAINTAIN SELL TODAY.
EURO STARTS CURRENCY AND TRADE WAR WITH US IF US INSIST THEIR WAY. Brussels prepared for trade war with US if it restricts EU imports Donald Trump says the EU has been ‘very unfair’ on US exporters – We are now eyeing 1.30 for EURUSD.
Brussels has warned that it stands ready to retaliate and potentially open up a transatlantic trade war if the US delivers on apparent threats to restrict European imports. The US president, Donald Trump, claimed in an interview with ITV broadcast on Sunday that the EU had been “very unfair” on American exporters, and that it would “morph into something very big” that would “turn out to be very much to [the EU’s] detriment”. Read More @ https://www.theguardian.com/uk-news/2018/jan/29/brussels-prepared-for-trade-war-with-us-if-it-restricts-eu-imports
TODAYS NEWS THAT MIGHT INTERFERE WITH YOUR TECHNICAL ANALYSIS.
- 1.00pm – BOJ will release their CORE CPI which is an important data for BOJ to make decision on shortening asset purchases and QE. We maintain SELL for USDJPY till 105.
- 2.30pm – French will release their CPI which is expected to be good. We maintain BUY for EURUSD.
- ALL DAY – Critical News – German CPI – We are expecting a good data and you expect huge volatility for EUR pairs.
- 4.00pm – Spanish will release their CPI – same as the French we expect a good data.
- 6.00pm – EURO will release awaited data by traders – EUR GDP – expected to be the same or better. We Buy EURUSD.
- 11.00pm – US will release Consumer Confidence – is expected to fall. We maintain SELL for USD.
- 11.30pm – UK Governor Mark Carney will speak and you can expect some good quality volatility for GBP Pairs – we expecting upward movement for GBP.
Overall the market is punishing USD and the USD will be continue to fall till $87. Remain cautious to news as the fundamental are in favor for USD in the long term. Maintain good money management.
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