The shutting down of Trump’s government

The U.S. government has been shutting down since Friday and it may take a few days to solve all the issues about immigration and borders security. In my opinion, it can have a limited effect on the Wall Street and the world financial markets. Stock markets may move mixed or sideways down these few days because investors may worry about the government shutdown (political issue) but energy stocks may keep supporting markets to stay high.
According to Gann Fann, Brent price is still in a strong bullish trend. If Brent stands higher than 68USD per barrel, it may possible return back above 70USD.

Bank of Japan could possibly raise the forecast of economic growth and inflation. Asian stock markets may focus on the BoJ press conference at 13.30 p.m., monetary policy and interest rate decision which expected the same. JPY will go higher, if Bank of Japan gives any good signals. If USD/JPY falls lower than 110.5 points it’s possible that the trend will continue. However, it may keep moving between 110.5-112 points.

The political situation in Germany is positive for DAX and euro. German economic sentiment in January 2018 at 17.00 p.m. is forecasted higher than 0.4%. From my point of view, economic growth and stable politics situation in the EU may support euro to gain higher than greenback.
Bitcoin price and other crypto currencies fell down a lot because the South Korea government may ban it. In contrast, the EU is set to present an action plan on cryptocurrency in the spring. From my experience, crypto market may spend 1-3 months to recover this issue and get back its strength. The most significant thing of cryptocurrency is the potential fragility to cyber risks.

By Niramon Nitnitiphruet
Financial analyst, Olymp Trade

Olymp Trade Review