Yesterday major US corporations such as Goldman Sachs reported their earnings which saw a big decline in both profits and turnover. The key takeaway is that the coming quarter is not expected to be a positive one, something which would in turn put US companies into an earnings recession.

US Stock markets closed slightly lower yesterday, as corporate earnings continued to set the pace. The Dow Jones industrials lost 0.1% weighed down by Goldman Sachs (GS) while other major indices also closed in the red. Meanwhile, stocks in Asia were mostly higher this morning, as U.S.-Japan trade talks kicked off and the Bank of Japan chief flagged risks of increasing trade protectionism. Elsewhere, the RBA reiterated its dovish stance in its minutes earlier today which caused the AUD to dip.

Markets to Focus on China Data

The world will focus on tomorrow's data out of China, and specifically its GDP to see how the economic development of the world’s second largest economy is playing out. China's annual gross domestic product (GDP) is expected to decline to 6.3% in the first quarter of 2019 from 6.4% in the final three months of 2018.  On the quarter it is projected to slide to 1.4% from 1.5%.


Forex Preview

The greenback is mostly trading flat today with the DXY close to the 97 level. Meanwhile the AUD/USD remains pressured by the recent RBA dovish minutes. AUD/USD was last seen trading 0.4% lower at 0.7147 as of 9:10 GMT this morning. The sterling is hardly moving like most major currencies this morning while the EUR/USD is stuck at the 1.13 waiting for new impulses. Maybe today's ZEW can get something moving, the same can be said about Thursday’s PMIs.

Oil and Gold Continue to Dip

Oil prices fell for a second consecutive day on the possibility the U.S. and Russia—two of the world’s top oil producers—will increase output and push recently global supplies higher. Meanwhile, gold prices also plummeted for a fourth straight session on Tuesday amid hopes that Washington and Beijing are making headway in their trade talks.

Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76.8% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

The content of this material and/or any information provided by BDSwiss Holding PLC should not in any way be construed, either explicitly or implicitly, directly or indirectly, as investment advice, recommendation or suggestion of an investment strategy with respect to a financial instrument and it is not intended to provide a sufficient basis on which to make investment decisions, in any manner whatsoever. Any information, views or opinions presented in this material have been obtained or derived from sources believed by BDSwiss Research Department to be reliable, but BDSwiss makes no representation as to their accuracy or completeness. BDSwiss Holding PLC accepts no liability for loss arising from the use of this data and information. The data and information contained therein are for background purposes only and do not purport to be full or complete.

Analysis feed

Latest Forex Analysis

Editors’ Picks

AUD/USD: Fresh lows, channel support tested, Golden Ratio in focus

Bears taking out the H&S neckline, target channel support/uptrend at 0.6829. Failures of the channel open risk to 61.8% Fibo and then 0.6755 November low. The risk-off mood in Asia not helping bull's case ahead of key data and an expected rate cut from a dovish RBA.


USD/JPY: Major bull cross fails to inspire Yen bears

USD/JPY is hovering below 110.00 with yen showing resilience, despite the bullish development on technical charts. The S&P 500 futures are hinting at risk reset in the markets. A notable equity market recovery could weigh over yen. 


Coronavirus FX Selloff, CAD Prime for Bank of Canada Breakout?

The most influential story for the financial markets today was reports that the first US case of corona virus has been confirmed. This deadly virus is spreading across the globe creating concerns about the impact on travel and consumer spending.

Read more

Gold: Stays below $1,560 following Tuesday’s bearish spinning top

Gold remains on the back foot while trading around $1,556.90 during the Asian session on Wednesday. The yellow metal portrayed a bearish candlestick formation, backed by bearish MACD, during the previous day.

Gold News

GBP/USD: Aims to revisit 200-hour SMA, immediate support trendline

GBP/USD registers mild losses while trading around 1.3045 during Wednesday’s Asian session. The pair earlier reversed from 50% Fib retracement of its fall from Jan 07 to 14. A two-week-old falling trend line adds to the resistance.


Forex Majors