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European Central Bank to Announce Plan in Tapering

  • DAR Wong
  • 11 June 2018

Fundamental Outlook   The U.S. Nasdaq Composite Index creates to new high amid other struggling stocks. China steadies in inflation growth while trade surplus slows down. European Central Bank (ECB) will plan to taper stimulus and hold press conference for details.

The U.S. ISM services index grew 58.6 in May and higher than previous month. Weekly jobless claims at 222,000 for the week ended 2 June and stayed in forecast range.

Last Tuesday, Nasdaq Composite Index closed at record high 7636.86 after Netflix and Amazon surged amid the other struggling stocks.

China’s Caixin services index rose 52.9 in May and stayed on growth track.  Another report on trade surplus grew USD24.9 billion in May and below expectation. Consumer prices rose 1.8 in May from a year ago while producer prices expanded 4.1 percent on annual basis.

European Central Bank (ECB) will announce in a press conference on this Thursday on winding down the asset purchase program of EUR30 billion monthly. Euro has started to rebound against Dollar as market traders short-cover for profits.

Markit reports the U.K. construction index rose 52.5 in May and best in 5 months’ record. Another report on the services index rose 54.0 in May and best in 3 months’ record.

Halifax in U.K. reports the housing prices rose 1.5 percent in May and above forecast, after the previous month slid 3.1 percent.

 

Technical Forecast   USD/JPY has been hovering at 109.50 region and confluent with EMA200 line. This week, we are anticipating the FOMC meeting and ECB conference to check on trend of Dollar and Euro. Hence, we forecast the USD/JPY trend will swing sideways in uncertainty from 108.00 – 111.00 range until a new force leads beyond it.

EUR/USD has shown recovery from recent bottom 1.1509 level. This week, we foresee the trend will bounce higher after initial pull back forces. Technically, the range is supported at 1.1650 area and likely to reach 1.1950 level if Euro strengthens after Thursday. Breaking beneath 1.1650 support needs to abandon your long-view.

GBP/USD also behaves like Euro sentiment and has reached a temporary neutral zone. This week, we reckon the trend will consolidate and move higher towards end of week. Range is expected to be contained from 1.3250 – 1.3550 region while aforementioned support must be well guarded.

 

Disclaimer: This article is written for general information only. No liability by the writer, publisher or any third party involved in the distribution of this work.

DAR Wong is a registered fund manager in Singapore with 27 years of global trading experiences. You may reach him at dar@pwforex.com


About the Author
DAR Wong (Singapore)
An international speaker with 27 years of trading experience in the global financial markets, DAR is a Market Master and author of “Living Daylight in Stock Market: Monetizing Your Profits in 8 Days”.

DAR Wong is an active market trader, registered fund manager, educator and author.He began his career in 1989 as an institutional Futures trader with Bank of America. DAR Wong specializes in trading global derivatives and financial markets. He has 26 years of experience accumulated through tenure with Bankers Trust, Barclays Bank, Citigroup (Smith Barney Shearson Inc) and as an independent trader.

DAR is the author of “8 Ways to Invest in China’s Emerging Market” and contributes frequently to regional media, including financial TV/Radio programmes, newspapers and magazines for professional traders and active investors.

He is a popular and sought after international speaker who has presented to financial professionals and investors throughout the region including Singapore, Malaysia, Indonesia, Thailand, Hong Kong, China, Cambodia, Myanmar, Philippines, Sri Lanka, India, South Korea, Laos, Vietnam, United Kingdom and Middle East (UAE).

DAR is registered with NASD (now known as FINRA) series 3 and 5 as approved by National Futures Association (NFA) of USA and holds a current portfolio as Fund Strategist and Advisor with Dektos Investment registered with Monetary Authority of Singapore.

DAR is profiled as “One of the most successful traders – Market Masters” in Brent Penfold’s bestselling book “The Universal Principles of Successful Trading “. In January 2015, DAR was honored with Outstanding Award for International Financial Market Analysis granted by ASEAN Commerce (Thailand).

DAR is the author of "8 Waysto Invest in China's Emerging Market" and contributes frequently to regional media, including financial TV/Radio programmes, newspapers and magazines for professional tradersand active investors.1

He is a popular and sought after international speaker who has presented to financialprofessionals and inverstors throughout the region including Singapore, Malaysia, Indonesia, Thailand, Hong Kong, China,Cambodia, Myanmar, Philippines, Sri Lanka, India, South Korea, Laos, Vietnam, United Kingdom and Middle East(UAE).2


Year
2003 - Set up ASPRI to provide hedging advisory for corporate clients and training for financial professionals
2009 - Released first book “8 Ways to Invest in China’s Emerging Market”
2010 - Profiled as “one of the most successful traders – Market Masters” in Brent Penfold’s bestselling book “The Universal Principles of Successful Trading” along with Larry Williams, Andrea Unger, Michael Cook, and Daryl Guppy etc
2011 - Received “Spirit of Enterprise”awarded by Singapore Management University in Singapore
2012 - Honored with Individual Diamond Career (Thailand) awardedby Royal Privy Council of Kingdom of Thailand
2013 - Appointed Vice Chairman of ASEAN-China Commerce Association and led a delegationtothe annual China-Asean Expo in Guangxi Province, China
2014 - Fund Manager cum Director in Dektos Investment Corporation registered with Monetary Authority of Singapore
2015 - Released new book “Living Daylight in Stock Market - Monetizing Your Profits in 8 Days” in January
2015 - Honored with Outstanding Award in International Financial Market Analysis awarded by ASEAN Commerce (Thailand)
2016 - Honored with Medal of Integrity by Royal Councilin Palace of Palembng, Indonesia

References

1.TV programs on ChannelNewsAsia (Singapore);Radio on 95.8 Capital (Singapore); Newspapers such as The Borneo Post (Malaysia), 资汇报 (Malaysia); Regional financial magazines such as The Analyst (India), 东盟商界(ASEAN, China), 资本杂志 (Malaysia).

2.Spoke at events for CME Group, Euronext LIFFE, Tokyo Commodity Exchange, Singapore Exchange, Korea Exchange, Bursa Malaysia, Thailand Futures Exchange, Jakarta Futures Exchange, Indonesia Commodity and Derivatives Exchange, Tokyo Commodity Exchange, Interactive Brokers, Xinhu Futures, Hangzhou Money Fair, China (Shenzhen) International Finance Expo, China (Guangzhou) International Finance Expo, Euromoney, CIMB, Maybank, RHB, UOB Bank, Asia Trader & Investor Convention, Global Rubber Conference, International Rubber Conference, Malaysia Rubber Board, International Rubber Research and Development Board,Malaysia Ministry of Agriculture, Rubber Industry Smallholders Development Authority, Vietnam Rubber Association, Cambodian Rubber Association, Bureau of Agriculture Research Philippines, Myanmar Rubber Planters & Producers Association etc.


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