FOREX STRATEGY FEB 6 - EXPECT THE UNEXPECTED

Feb 06, 2020
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We all know that Thursday is the high time for trade to make their final moves in the market. So let's check out the news for today, February 6, and see what trading strategies should we apply?

It is decided

Not surprisingly, the Republican-led United States Chamber of Commerce voted to acquaint President Donald Trump from allegations of abuse of power and hindering Congress. A bitter battle between the parties has ended and left a final verdict on Donald Trump's actions ahead of the November election when he faced a Democratic opponent to maintain his leadership role. her religion. However, that is not necessarily the consensus of the entire Republican Party: Utah State Senator Mitt Romney voted to protest when Mr. Trump was guilty to Parliament for abusing his power by seeking A political favor from the Ukrainian government. But the vote results show that 52/100 votes agree that Mr. Trump did not commit a crime of abusing his power and 57/100 votes agreed that he did not commit an obstruction to Congress. Mr. Trump is currently the third US president to escape after being impeached by the House of Representatives.

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China in danger

Scenes of chaos and despair are increasingly appearing in China's Hubei province - the center of the disease caused by Coronavirus. While cases of infection have spread globally, the impact of the virus in Hubei remains the most serious, where 97% of all deaths and 67% of infected patients have been witnessed. This growing number reflects a local health system being powerless against a pathogen that spreads too quickly, making even the most basic care impossible. The mortality rate of patients infected with Coronavirus in Hubei is 3.1%, compared with the rest of China is only 0.16%. U.S. health officials, meanwhile, are preparing many people to evacuate to U.S. military bases, and the WHO is looking forward to suggestions for impending breakthroughs in developing vaccines or treatments for the Coronavirus.

Tesla is finally down

Incredibly, Tesla's stock ended a 60% rise in a six-day sequence that Wall Street screamed yesterday. Shares of electric car manufacturers have fallen 21% to $ 704.11 per share, erasing most of the earnings that the stock has earned in the past two days. Yesterday afternoon, it only increased by 7.7% from the opening price on Monday morning. The decline comes as analysts at Canaccord Genuity lower their ratings for stock holdings with fears that the company's Shanghai plant may struggle as China is operating. Translation of Corona virus. Daniel Ives, analyst at Tes Wedbush, said: "Tesla's stock has made a move like Bitcoin." However, analysts expect the stock to remain stable within the $ 700 price range and start rising again with business potential in China. In the meantime, CEO Elon Musk's personal assets have plummeted by $ 5.9 billion.

An escalating market

Asian stocks are expected to rise after data showing resilience in the US economy and investors have speculated that the effect of Corona virus could be controlled. Earlier, US stocks closed at an all-time high and Treasury yields rose. Futures markets in Japan, Hong Kong and Australia increased steadily, signaling that Asian stocks may rise for a third day in a row. Market risk sentiment has also been lifted following a series of reports on vaccines that can treat the virus, but the World Health Organization later said there was no method to treat it. Any treatment is proven. The dollar rose as data showed that US companies added more jobs than economists forecast in January. Crude oil increased more than 3% with OPEC+'s prospect of cutting output.

forex news in the world 1

Deep in debt

China's huge debt will be even greater. According to a new study from PricewaterhouseCoopers, bad debts and risky assets will likely continue to grow after reaching the $ 1.5 trillion threshold in 2019. Loans are piling up on the mountain. The world's second largest economy to further expand foreign capital. As part of a recent trade deal, China is now allowing US companies to apply for licenses to buy bad debts directly from banks. Although PwC discussed the Corona virus in its report, other observers said the epidemic could put more pressure on credit, adding to demand for loans in China. Co-chairman of Oaktree Capital, said the infection could occur in certain areas of the economy and it could significantly increase the bad debt unless the central bank injects more liquidity. . S&P Global said banks are expected to suffer $ 800 billion in losses because the disease will threaten large segments of the economy.