World markets in pessimism, the expert described the reasons for
Futures on the S&P500 index losing more than 1% in the second half Wednesday, when they managed to reach peak levels. Market participants are trying to lock in profits after a long growth, which sent U.S. and China in the area of multi-month highs. At the same time, the yen touched lows against the dollar since mid-January. A moderate demand for protective instruments against the background of a relatively good data due to the caution of the markets before the long weekend in Europe on the occasion of Easter (from 18 to 22 April).
The single currency yesterday lost more than 50 points (0.4%) to 1.1250: so she reacted to the disappointing assessment of business activity of PMI. Statistics for the Eurozone was much worse than expected: for example, the Manufacturing index remains below 50 since February, signaling reductions in production. The index for services fell from 53.3 to 52.5. Composite PMI remains dangerously close to the 50 – level that separates growth from recession. Note that this is not the first time this year, when the Euro was subjected to sale after the disappointing PMI data, which are considered a reliable indicator of business activity and offers the investors with a signal as much as a few months before the official data release. We recommend you to follow the schedule: development of the decline in returns in the agenda of the downtrend in the EURUSD.
The pound declines for a third consecutive day, approaching the psychologically important level of 1.30. The pressure on the pair due to the fact that the differences in the British Parliament did not manage to settle, plus from the Euro zone comes neblagopryatnye statistics. It is ironic that at the same time, fresh published retail sales data was extremely strong. Instead of the decline in March of 0.3 percent that analysts were forecasting growth of 1.1%. This Pro-inflationary news, which can help the British pound to swim against the tide, despite the overall cautious mood in the markets. You should pay attention to the dynamics near 1.2970 and 1.30 – orona where the GBPUSD has received support in the last 2 months.
Despite sanctions against Venezuela, oil prices began to decline. After updating six-month highs at 71.80 per barrel, Brent is rapidly pulled down, and temporarily fixed at 70.90. It is important to note that the RSI has also gone below 70ti returned from the overbought zone. This combination may cause a further decrease in the cost of a barrel and become a strong signal of the beginning of fixing of profit.
With the beginning of the year the price of gold fell under pressure from the impressive optimism in global markets, and now we are seeing a continuation of this trend. Please note that the rise in us yields and multi-month highs in equity indices, likely caused further sharp weakening of quotations of Gold this week. Furthermore, against gold play and seasonal factors: historically, it is rarely possible to grow in the period from March to August. The closest significant support level looks mark 1250 – important round level, through which, besides, is now moving average MA200. ______________