Will the Stock Market Be Able to Climb out of the Red?

Thursday’s trading was negative for Asia-Pacific region indexes: Because investors were taking a wait-and-see attitude in the run-up to the G20 summit in Germany and the release of US unemployment data on July 7, uncertainty over the US dollar persists. This gave a slight boost to the Japanese yen and other reserve currencies and, as a consequence, led to a decline in the majority of indexes.
Japan’s Nikkei 225 fell 0.44% during trading; Hong Kong’s Hang Seng by 0.22%, and South Korea’s Kospi by just 0.02%.
After trying to rise, the USD/JPY pair again approached the 113 mark on the strengthening of the Japanese yen. It appears that the trading trend may stabilize the pair at 112.85 - 113.15 on Friday right up until the US data come out.

The trend in European trading was similar: the majority of European indexes also fell, while the European currencies strengthened against the US dollar. The EUR/USD pair again came close to 1.14, regaining a large portion of the losses after almost a week’s correction. As with the Japanese yen, investors are taking a wait-and-see attitude until the US unemployment data come out. The target shifted to 1.1415-1.1425.
The GBP/USD pair was trading in a similar way: after stopping at 1.2934, the pair is gravitating toward 1.2955-1.2975.
European investors are also evaluating the ECB’s warnings about a possible reconsideration of the decision not to buy up assets, since this decision might mark a return to the policy of quantitative easing that European investors have gotten used to, but that is not very effective at stimulating inflation, or they might decide differently. Overall, European indexes closed in the red, losing 0.45-0.72%.

US trading on Thursday started out also in the red. Oil, which strengthened on uncertainty over the US dollar, was noteworthy. Brent is trading around $48.50 in expectation of the evening’s data on US oil inventories in the hope that they have fallen.

Yuri Prokudin, Olymp Trade analyst

Olymp Trade Review