Fundamental analysis from New Forex: The Asia-Pacific region

Fundamental analysis from New Forex: The Asia-Pacific region

Posted on May 17, 2017, 14:46 PM

Growing concern about internal tensions in the US led to a rise in the yen and gold, as well as lower futures on US shares. Futures on the S&P 500 index weakened and stock markets throughout Asia supported the downtrend. It happened after Trump asked FBI Director James Kogi to terminate the investigation against former national security adviser Michael Flynn. Information that the President of the United States share information about terrorism with the Russian officials has exacerbated the weakening of the U.S. dollar . The dollar index closed lower for the sixth day in a row.Traders were divided between those who see the catalysts for the growth of the dollar outside the political background and those who heralds the imminent approval of infrastructure plans and Trump thinks that the us currency went on a downward straight line. Futures on the S&P 500 index fell to 0.6 percent after the underlying index has reached record levels on Tuesday on 2405.77. Tokyo’s Topix lost 0.6%, ASX Sydney slipped on 1%, and the banking sectors became leaders of fall. Kospi in South Korea fell on 0.4 percent, as stocks in Singapore lost 0.6%. The Shanghai Composite fell to 0.1%, while Hang Seng is 0.3%. Taiex in Taiwan fell to 0.6%. Chinese stocks traded in Hong Kong fell to 0.6%. The volatility Nikkei 225 reached month highs. A similar indicator for the S&P 500 rose on 2.2% on Tuesday. The yen rose on 0.6% to 112.41 against the U.S. dollar, rising on 0.6% on Tuesday. The dollar index dipped on 0.2 percent, trading at its lowest level since November, 9. For the week the oil reserves fell by 2.67 million barrels. These data confirmed the predictions of the energy information Administration of the USA which also coincided with the forecasts of the Council’s domestic energy Committee of OPEC. At the same time, the report on the labor market noted that wages grew by 2.1% in April compared to 2.2% in March. These and other data suggest to lowering forecasts for the US dollar. It will be important to consider both positional and medium-term traders.

NewForex Analyst

Alex Vergunov

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