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S&P 500 and Nasdaq Soar to New High

A guest post written by DAR Wong

Currency Market Observations – 27 August 2018

Fundamental Outlook

The US housing data rise below forecast. Technology stocks soar to new historical high. President Trump faces challenge of being impeached after two former advisors are found guilty. British net borrowing by government sectors decline.

The US existing home sales rose 5.34 million in July and lower than forecast and previous month. Another report on new home sale grew 627 million in July, lowest in 5 months and below forecast.

The US order for durable goods slid 1.7 percent in July and worse than expectation. Excluding transport equipment, core order rose 0.2 percent and missed the forecast. On Friday, S&P 500 and Nasdaq Index closed at record high as Netflix jumped.

President Trump says the Government is planning to implement 25 percent tariffs on all car imports from European Union. He also expresses disagreement to higher interest rates reinforced by central bank policymakers.

Two former advisors of Trump administration, Paul Manafort and Michael Cohen, are found guilty of criminal acts linked to tax frauds and Russian operatives and could implicate President Trump into impeachment. Trump speaks on national TV and defends himself for having done a good job so far while threatens the stock market will crash if he is impeached.

Eurozone manufacturing index rises 54.6 in August and services index grows 54.4 in same month. As largest nation among 19 countries, German manufacturing index rises 56.1 and misses expectation.

The UK public sector net borrowing dropped by GBP2.9 billion in July and improved from GBP3.3 billion gains in June. Another report on CBI industrial order expectation grows at 7 and down from previous month 11 reading.

Technical Forecast


USD/JPY traded in strong demand last week and closed at near intra-week top. This week, we reckon the range will be tight from 110.50 – 111.50 region but piercing beyond whichever extreme will lead into a new directional headway. Risk control is advised for high probability of ascending trend.

EUR/USD traded in mild demand last week. This week, the trend trends to be constricted from 1.1550 – 1.1650 region while waiting to make a breakout. Dollar Index will be a crucial factor for leading inverse trend for Euro direction. No clue is given in market momentum for the forthcoming direction though risk control is reminded for traders.

GBP/USD traded in sideways as both Euro and Dollar edged higher. This week, we forecast the trend will be uncertain and contain initially from 1.2800 – 1.2950 range. Traders are becoming cautious and wait for potential breakout before picking a position in market.

Dar Wong

This post is contributed by OPF Guest Blogger, DAR Wong.

DAR Wong is a registered fund manager in Singapore with 26 years of global trading experiences. You may reach him at

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DISCLAIMER: This post is written for general information only. The author, publisher and/or any third party involved in the distribution of this work assume no legal responsibilities and shall have no liability whatsoever for any direct or consequential losses, costs or expenses arising from the use of the information contained herein.


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