USD on course to set new 2018 high

USD on course to set new 2018 high
  • Terrible wall street sell-off is echoing the 2008 financial crisis, as USD and Japanese yen rising
  • CAD is hawkish as well followed by a comment from BOC governor, Stephen Poloz
  • ASX200, Nikkei 225 and other equities are equally vulnerable, as USD eyeing new 2018 highs

Terrible wall street sell-off echoing 2008 financial

The wall street is continuing to show the global fundamental reality, as the rising interest rates, political uncertainties and trade wars, all are in playing terms and could prove to be pivotal for ill sentiment. Yesterday (24.10.2018), S&p 500 fell by 3.09% and Dow Jones tumbled by 2.41% as well. The NASDAQ showing the worst performance dismantled by downward movement by 4.43%.

NASDAQ, DOW Jones and S&P 500 yearly chart

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NASDAQ, DOW Jones and S&P 500 yearly chart

If you could look closely on the chart, you would find that the indexes are now on course for their worst performance in decades. Also, the progress made in this year, has already been wiped out and the only way left is only downwards. US government bond is price is rising continuously and it is now at its highest since late August.

CAD aggressive followed by a comment from Stephen Poloz and May join the league of winning currencies along with YEN and USD

Stephen Poloz, the Bank of Canada governor has recently made a hawkish comment and that definitively is playing a crucial role in near-term outlook for CAD. When this report is being written, CAD has stopped losing ground and is now trading just over 1.3010 (25.10.2018, GMT. 6AM). It is expected that CAD will soon be joining the league of endearing currencies along with Yen and USD, in these times of grave grievousness.

Here is a list of additional commentary made by BOC governor Stephen Poloz

  • Trade actions always slowed down economic growths
  • Neutral rate should not be described as a “cap”
  • BOC analysts are right on course and recent drop of inflammation approves that.
  • Policy is on simulation, when the economy is not working properly
  • Canadian economy needs no stimulation

ASX200, Nikkei 225 and other equities appear to be vulnerable, as USD is leaning closer to 2018 high

Looking forward to today’s market, the Asia Pacific session seems to be vulnerable for Nikkei 225 and ASX200, as they may have been echoing the downward momentum of Wall street. However, the forecasted downward momentum of Nikkei 225 today, might pave an upwind momentum for Japanese yen, though the outlook for NZD and AUD is looking forward to a certain downward move.

Financial forecast you can trust

As the USD is aggressive enough and has already crossed a critical range of resistance between 96.05 and 96.15, the chance of exposing the 2018 high, 96.98, is now brighter than ever. On the other hand, as the global sell-off continues, the equities should prepare for major slips that might yet to come.

Read more about Yen technical outlook here

[Disclaimer: The content of this article is personal opinion and should not be considered as investment advice or suggestion towards any trading activity.]



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