Dollar is not looking good

Daily Analysis - 24/01/2019

Global growth retraction affecting the Greenback


Yesterday the greenback was falling against its competitors, limited by anxieties regarding global growth. The U.S. government closure also plays a major role in the falling dollar as well as the U.S. China trade conflict. Nick Twidale, chief operating officer at Rakuten Securities said, "Trade tensions are the most dominant factor for investor sentiment right now and will drive market flows."

He added that investor risk desire will only increase when anxieties over the partial U.S. government closure and trade tensions subside. The partial U.S. government closure has reached its 35th day and has damaged trader’s viewpoint. The U.S. Republican Senate Majority Leader Mitch McConnell said that his intention is to secure a vote on Thursday on a Democratic proposal that would support the government for less than a month.

Asian stocks improved

On Thursday the majority of Asian markets ended positive due to ambiguities circling the global economic outlook. Another reason is the continuing U.S.-China trade dispute. The Shanghai composite climbed about 0.4% to end at about 2,591.60 and the Shenzhen component rose more than 0.6 percent to close its trading day at around 7,573.50.

The mainland Chinese markets, improved from earlier losses. While the Shenzhen composite reached a close of 1,322.29.


Oil falls and reaches $52.60

On Wednesday the oil market dropped while general economic retardation, paused the demand for oil. That put weighed on energy rates.

Crude futures earlier rose on hopes that Japan and China will proceed to pause the slowdown. Rates got supported by the expectations that U.S. crude stockpiles will drop last week.

International Brent crude oil futures dropped about 35 cents, to $61.15 per barrel. ET. U.S. West Texas Intermediate crude futures closed Wednesday's trading session at about 38 cents.


Dow rises more than 150 points

On Wednesday the Dow Jones Industrial Average climbed due to a strong quarterly earnings from companies including Procter & Gamble., IBM, United Technologies and the 30-stock index climbed about 171.10 points to 24,575.60 while the S&P 500 increased 0.2% to close at 2,638.69, the NASDAQ Composite improved 0.1% to 7,025.76.



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