FOREX TRADING STRATEGY FEB 17 - BE CAUTIOUS
It's the beginning of the week. What we should do today is grasping the world's most important events to predict where the market will go this week. Based on our prediction, we can know what forex trading strategies we should apply in the coming days.
On the agenda of the world's top financial officials this week, China, Hong Kong and Singapore are pledging to stimulate more fiscal to combat the economic impact of the Coronavirus.
On Sunday, China said it would enact more effective stimulus measures despite the growing fiscal gap, including lowering corporate taxes. Hong Kong's top financial official said the city was facing "tsunami-like" shocks that could lead to a record budget deficit. According to analysts, Singapore is aiming for the biggest financial stagnation in nearly 2 decades. Meanwhile, the United States and other countries are ready to send hundreds of passengers stranded on an isolated ship in Japan, but infected travelers are being left behind. The evacuation has sparked fear of infection when tourists returned home from a cruise ship in Japan and another arrived at a Cambodian port. More than 1,933 new cases were recorded in Hubei at the beginning of Monday.
A warning from IMF
The leader of the International Monetary Fund said the lack of further improvements in the global economic system is hindering its development prospects, especially the shock caused by the Coronavirus this year. On Sunday, IMF CEO Kristalina Georgieva said in an interview: "The space of monetary policy is shrinking and it is subject to fiscal measures as well as mechanical reforms. stronger structure can drive growth. "What is missing is a more drastic change in structural reform". As the impact of the virus increases the risk of disruption on supply chains, most major central banks are wary but there are no plans to loosen money.
The markets open today
Asian stocks are likely to start the new week cautiously as investors consider China's latest reaction to support the economy from the impact of the Coronavirus outbreak. The futures markets in Japan, Hong Kong and Australia all fell after two weeks of rising global stocks. Today's trading volume is likely to be lower than the average as the US is on a holiday and Treasury Bonds will not be traded. US stocks rose on Friday as data showed retail sales rose for the fourth straight month, showing stability in consumer spending. Treasury bonds ended the week with 10-year yield at 1.58%.
Big change from HSBC
HSBC is about to announce its third major overhaul in a decade on Tuesday. Transaction and back-office departments are preparing for scenarios that could occur as another reshuffle of senior management, an unexpected new CEO, or a withdrawal from the business and a cut. jobs globally. Measures could include reducing billions of dollars in personnel, trading staff and reducing contact with countries from Turkey, Greece to Oman. The future of the interim CEO - Noel Quinn - seems to be very uncertain.
The war between the United States and Europe over Chinese technology is threatening to divide the military alliance across the Atlantic. When the US defense establishment identified China as its number one priority, a two-party delegation led by Secretary of State Michael Pompeo and House Speaker Nancy Pelosi voiced their concerns about using equipment. of Huawei Technologies Co. at the Munich Security Conference over the weekend. Officials warn that installing the Huawei toolkit could undermine cooperation with U.S. allies as Donald Trump's aggressive trade tactics begin to derail defense ties of his administration.