SET is recovering – Trade war still in focus

The most stock markets in Asia traded lower on Tuesday but SET edged higher after SET rebounded above 1,600 point on Monday. SET rose above 1,610 points on Tuesday morning so this maybe the recovered signal. SET may try to hold steady above 1,600 points in this week and it may try to rise up to 1,630 points. In my view, if SET can break 1,615 points, it may rise to 1,630 points on Wednesday. However, investors still keep eyes on trade war between U.S.A. and China which focus on Friday (6th July). The United State also tariffs other trade partners such as Canada, Mexico and EU so Canada began imposing tariffs on $12.6 billion in U.S. goods on last Sunday as well as EU will threaten to retaliate, If Trump tariff EU cars.
Investors need to keep focusing on trade war between the United States and its partners carefully even China cut tariffs on 1,449 taxable consumer import goods from 15.7% to 6.9% and import vehicles from 20%-25% to 15%. This factor may support investing sentiment better and investors still hope to see positive signal of negotiation between U.S. and China this week. The U.S. dollar held steady against euro on Monday supporting by the political uncertainty in Germany. Euro may try to hold above 1.1600 dollar but Germany's Interior Minister said that he will not resign after hours of crisis talks with Angela Merkel. This factor may support euro to reduce the strength of bearish trend. EUR/USD may take a breath and move in flat between 1.1600 – 1.1650 but if dollar gets good supports and euro fall lower than 1.1600, it may head down to 1.1500 dollar.
While Aussie dollar fell lowest in 1.5 year on Monday and rose up next day. The low interest rate still stimulates Australian economy but it may give negative for Aussie dollar in long term. AUD/USD may continue moving in the frame 0.733-0.7400 points today. British pound held steady above 1.3100 dollar early on Tuesday and it may try to rise to 1.3200 points but it needs to break 1.3150 points. If U.K. economic data release better than forecast, pound may retest the resistant line but if pound fall lower than 1.3100, it may fall to 1.3000 dollar.
BTC China one of the longest-running and top-three trading platforms in China, had announced that it is relaunching the exchange business under the name “BTCC.” The relaunch plan takes nearly a year after Chinese government shutdown crypto trading platforms in September 2017. Furthermore, Bitcoin price rose back to 6,600 dollar again so it may retest 7,000 dollar.
Economic indices in focus:
• Australia: Retail sales (May) at 08.30 a.m.
• UK: Services PMI (Jun) at 15.30 p.m.

By Niramon Nitnitiphruet
Financial analyst, Olymp Trade.

Olymp Trade Review