Stock markets in Asia were trading mix on Tuesday and future markets also keep trading mix. In my opinion, major markets in Asia may trade more active because Hong Kong and Taiwan will open today after lunar holidays.
Investors focus on German manufacturing PMI in February at 15.30 p.m. and EU manufacturing PMI at 16.00 which forecast a little bit lower. Moreover, Euro may reverse lower, if it is potting “Double top” pattern now. If EUR/USD falls to 1.2207 point, it may a reversal pattern and fall lower to 1.1907 points.
Bank of England will release inflation report and chair Carney will give a speech at 21.15 p.m. which are the core factors for pound. I think if inflation still keep at 3% or rise up, BoE may signal to raise interest rate earlier to control the inflation. As the result, pound may edge higher, if the inflation is high. In contrast, pound may follow market’s factors, if U.K. economic outlook is still good. In my view, U.K. economic is still strong because labor market indices: average earnings and unemployment rate in December predict unchanged and claimant count change in January at 16.30 p.m. forecasts lower.
U.S. dollar fell almost 3-year low last week and then it try to hold steady on the beginning of this week. There are some support factors to pull greenback up again today: PMI indices in February at 21.45 p.m. and existing home sales in January at 22.00 p.m. which expect higher. If every index reach expectation or edge higher, dollar may rise up.
Vitalik Buterin, ethereum founder warns that Cryptocurrencies “could drop to near-zero at any time” while bitcoin broke 11,000USD for the first time since January. Bitcoin price edge over 80% since it fell lowest to 5.947.40 on 6th February. I also agree with Vitalik to invest in cryptocurrencies only money that you can afford to lose.
By Niramon Nitnitiphruet
Financial analyst, Olymp Trade.