After ECB chair spoke that EU economic could slower down than estimated because of the slower inflation but this is just a temporary situation on Monday. Then a new Fed chair gave speech on Tuesday. Market maybe sensitive of Powell’s speech and he will speak again on Thursday. This week is on of the rich data period so investor keep eye on every significant indices.
Major stock markets in Asia may trade mix on Wednesday because future markets are mix. Shanghai market may hold steady waiting for manufacturing PMI of February at 8.30 a.m. which may support China market edge higher, if manufacturing PMI is higher than 51.4.
Euro may keep its sideways between 1.2200-1.2500 waiting German unemployment change at 16.00 p.m. and EU CPI at 17.00 p.m. which may express the slower growth of inflation as Draghi said. Focus, U.S. GDP fourth quarter in 2017 at 20.30 p.m. which may give negative for greenback, if it drops lower than 2.5%. Real estate of January in USA seem slow down because sales indices were lower than expected and Pending home sales at 22.00 p.m. may lower than 0.3%. In my view, EUR/USD may swing in the frame because no good supporting factors.
Oil price rose on Tuesday because worries about reducing supply of OPEC so Brent may try to retest 70USD/barrel. I think U.S. crude oil inventories at 22.30 may support Brent bullish trend, if it decreases lower than 2.675 million barrel. Gold price may hold steady above 1,320 USD because of the greenback.
Bitcoin price try to stay above 10,000USD. I think today Bitcoin may trade higher but it may not break the resistance at 12,000 USD. Taiwan's central bank will eye utilizing the Blockchain to improve the security and efficiency of Taiwan's electronic payment system – said Yang Chin-long, the new governor of Taiwan's central bank on Monday.
By Niramon Nitnitiphruet
Financial analyst, Olymp Trade.