Subscribe to RSS

Forex Market Overview:  Dollar dropped on concerns about China

Yesterday American stocks edged lower after 2 days of loss on concerns that Chinese economy slowdown may result in a global crisis. Caixin China PMI industrial index dropped 0.7 points in August to 47.1. This was the steepest monthly fall for 6.5 years. To be noted, it has been moving below 50 for 6 months. This mark is considered to be a separation point between industrial expansion and contraction. S&P 500 retreated to a 6-month low and showed the sharpest daily drop since February. 2014. Disney and Time Warner media stocks lost 6% and 5% respectively as the Bernstine investment company cut their ratings. Apple shares declined 2% because of sales in China dropping for the first time in the second quarter. The American stocks trade volume on Thursday was 18% above the monthly average, making 7.9bln shares. Today at 15:45 CET the Markit agency will release Preliminary Manufacturing PMI (Purchasing Managers Index).


European indices recorded new lows this morning because of negative statistics from China. Now they have been slightly rebounding due to good Manufacturing PMI in Germany and eurozone (August data). Today at 16:00 CET Consumer Confidence index in August will be published in the European Union; the tentative outlook is neutral.

The euro fell to its 2-month lowest against the dollar: investors expect that eurozone economy will grow while China will slow down. US ICE Dollar index recorded a new 8-week minimum. According to market participants, Chinese recession makes Fed hike in September less likely.

Nikkei dropped for 5 consequent days to a six-week low. However, the contraction was not that intense as compared to other global indices. On Wednesday and Thursday Bank of Japan injected liquidity to financial markets, each day buying exchange-traded funds worth 33.7bln. It is worth mentioning that stocks retreated regardless of good macroeconomic data, released this morning. Japanese Manufacturing PMI advanced in August from 51.2 to 51.9. More of that, super market sales increased in July. The yen inched higher third day in a row. It has been used for carry trade operations.


Demand for gold increased due to concerns about world economic growth prospects in the light of Chinese recession. Gold prices reached a new 6-week high. The weekly record may be the best since January. Greek prime minister Alexis Tsipras resigned from office. The country may hold new parliamentary elections September, 20, which may negatively affect European markets. We would like to remind you that gold futures marked a 5.5-year low this July.

Oil prices have been falling for 8 straight weeks. This is the longest constant fall since 1986. To be noted, 29 years ago they plummeted from $30 to $10 per barrel. The USSR launched a reformation program called “Perestroika” which led to its collapse in the end. Then oil had been traded for almost 10 years between $15 and $22 per barrel. It skyrocketed to $40 October, 1990 when the US invaded Kuwait. After the crisis of 1998 in Russia oil prices set a steady uptrend.


In July China increased sugar import 72.7% to 485 thousand tons as compared to July, 2014. In theory, it may drive the prices up from their recently recorded 7-year low. If compared to this June, sugar import by China doubled.

0 commentsback to post

Add your comment

Nickname:
E-mail:
Website:
Comment:

Other articlesgo to homepage

$25 Free Forex Welcome Gift to Start Trading – TRADE

$25 Free Forex Welcome Gift to Start Trading – TRADE(0)

Sign up and receive $25 Free Forex Welcome Gift to Start Forex Trading. $25 Free Forex Welcome Gift by TRADE.com to trade forex live trading without any Deposit and investment to verify live account Link:  $25 Free Welcome Gift to Start Trading Available to: All new trading account Bonus offer: Sign up and receive $25

Stay Informed About Crucial BREXIT News – UFX Broker

Stay Informed About Crucial BREXIT News – UFX Broker(0)

How will BREXIT affect the value of the GBP? Could the EUR be affected, as well? Other European markets may see volatile market reactions as investors wonder how the UK may profit from its own market, rather than remain part of the EU’s single market. Stay Informed About Crucial BREXIT News with UFX Link:  Stay

Up to 444% Profit Receive for a Single Trade – Grand Capital

Up to 444% Profit Receive for a Single Trade – Grand Capital(0)

Up to 444% Receive Profit with our new Express Options for Grand Capital Ltd Binary Option Broker. Make a correct prediction for 3 assets at the same time Link: Up to 444% Profit Receive for a single trade Link:  $500 Forex No Deposit Welcome Bonus Link:  40% Forex Welcome Deposit Bonus Available to: All new

$6000 First Deposit Bonus Limited Time Offer – XTrade

$6000 First Deposit Bonus Limited Time Offer – XTrade(0)

Up to $6000 First Deposit Bonus Limited Time Offer (T&C applied) on all Deposits for all Customers. Become an XTrade customer, and get 60% Forex Special bonuses (T&C applied) on all deposits made during your first 7 days!! Link:  $50 Free Cash Welcome Bonus Promotion  (T&C applied) Link:  $30 Free Account Verification Bonus (T&C applied) Link: 

50% Deposit Bonus and $50 No Deposit Bonus – FortFs

50% Deposit Bonus and $50 No Deposit Bonus – FortFs(0)

$50 Forex No Deposit Bonus Promo Action to all eligible clients. Every client who passed the verification process in their trader’s room can get the $50 No Deposit Welcome Bonus Link:  $50 Forex No Deposit Welcome Bonus Link:  Up to 50% Bonus of Every Deposit Link:  15% Support Margin Bonus Promo Available to: New and

15% Forex Welcome Deposit Bonus Up to $1000 – XM

15% Forex Welcome Deposit Bonus Up to $1000 – XM(0)

15% Forex Welcome Deposit Bonus Up to $1000 and $30 Forex No Deposit Bonus Welcome Bonus brings Real Account clients the best rewards available. Entering the markets and trading with XM enables you to earn from your trades and build your own bonus up to a maximum of $1,000. Link:  $30 Forex No Deposit Bonus

Free $200 Earn with Binary No Deposit Bonus – Ayrex

Free $200 Earn with Binary No Deposit Bonus – Ayrex(0)

Earn $200 Free with Binary Options No Deposit Bonus to all new activated trading account. Ayrex presents its very first Binary Options No Deposit Bonus for new traders. Sign up to get FREE $30 and turn them into a fully withdrawable $200! Link: $200 Earn with No Deposit Bonus Link:  $100 Free Win in Just One

$30 Free No Deposit Welcome Bonus Campaign – Tickmill

$30 Free No Deposit Welcome Bonus Campaign – Tickmill(0)

$30 Free No Deposit Welcome Bonus Campaign to All new traders. $30 Free Welcome Account is available to all new clients who expressed a wish for it during the registration process. Link:  $30 Free Welcome Bonus Offer Available to: All new traders Ending Date: 31 December 2017 Bonus Offer: $30 Free No Deposit Welcome Bonus

Get $2017 No Deposit Hot Bonus Promotion – FreshForex

Get $2017 No Deposit Hot Bonus Promotion – FreshForex(0)

$2017 No Deposit Hot Forex Bonus Offer to all new verified customers. The $2017 Hot No Deposit Forex Bonus offers you a unique opportunity to test trading strategies of FreshForex Link:  $2017 No Deposit Hot Bonus offers Available to: All New Traders. Ending Date: 30 April 2017 Bonus Offer: $2017 No Deposit Exclusive Hot Bonus

100% Real Money Cash Back Bonus Promotion – UFX

100% Real Money Cash Back Bonus Promotion – UFX(0)

100% Real Money CashBack Promotion 2018 to all new and existing clients. Join and gain exclusive access to the ONLY online trading 100% Cashback rewards bonus program Link:  100% Real Money CashBack Promotion Link:  $50 Forex No Deposit Bonus Promotion Available to: All new trading account Ending Date: 31 December 2017 Bonus offer: 100% Real

read more

Forex Featured Broker

Contacts and information

ForexDepositNews.com Forex Deposit Bonus, Forex No Deposit Bonus, Forex Live Contest, Forex Demo Contest, Free Forex Bonus Forex Brokers Review and Other All Forex promotions.

ForexDepositNews.com

Social networks

Most popular categories