On Tuesday U.S. voted 84 to 13 for Jerome H. Powell as the next chairman of the Federal Reserve that Chair Janet L. Yellen will end in February. Powell may continue Yellen's policies to slightly change interest rate and stimulate economic. In my opinion, investor shall focus a long-term inflation and stimulus the slow down economic in USA in this year.
While investor also worries about the global trading after Trump approved tariffs on solar cells and washing machines imported to the United States on Tuesday. This factor may give negative for world stock markets because investors may slow down their investment. Hence, the major markets in Asia may open mix and may swing in narrow frame.
Investor focus on ECB interest rate decision at 19.45 p.m. which forecast unchanged but investor will listen to ECB press conference at 20.30 p.m. as it may give some signal about monetary policy in 2018. Moreover, it may support euro to hold steady today. EUR/USD may rise higher, if initial jobless claim at 20.30 p.m. and new home sales at 22.00 p.m. in USA will be lower than expectation.
Kiwi dollar may keep its bullish trend, if CPI at 4.45 a.m. is better than 0.4%. I think if New Zealand CPI is worse than forecast in the morning, kiwi dollar may drop and then it may rise back during the day and it may rise highly over 0.7400USD, if U.S. economic indexes will be negative. If NZD can break 0.7600 points, it may have a strong bullish trend and may rise to 0.800 points
Crypto market may stop its bearish trend and try to recover after falling hard around 50%. In my opinion, it is the good falling as it may be a corrective wave before rising stronger than 2017. The United Kingdom’s technology development announced on 22nd January it would invest on supporting blockchain-based technologies.
By Niramon Nitnitiphruet
Financial analyst, Olymp Trade