Today the focus will remain on China. Yesterday the CSI300 Index plunged 7%, triggering the circuit breakers, sending traders home with the shortest day of trading in its history. Brokers in China are tipped to pack their lunch as officials suspend the circuit breaker rule in favour of free market adjustments. The PBoc continued its devaluation of the Yuan, fixing higher again at USD6.5646 from USD 6.5314, widening the onshore-offshore spread.
These developments in China are sending ripples throughout the global economy, increasing volatility and market nervousness. It comes as no surprise that the Eurozone Indexes continued to bleed overnight, with the DAX down more than 3%, UK FTSE and France’s CACC40 down over 2.5%.
OIL prices broke through its GFC low (USD$32.40/b) to a tough US$32.10/b, however closed a little higher. Back at home, the release of Retail Sales data had a net zero impact as figures came in at expectation. As OIL prices struggle to find their low, downward pressure on the dollar is tipped to remain as uncertainty in China continues.
Trading quote of the day: “Volatility is greatest at turning points, diminishing as a new trend becomes established.” – George Soros
Important note: These technical and research reports are provided to easy-forex® as a subscriber of third party providers. They are provided for informative purposes only and in no way can they be considered as a recommendation by easy-forex® to you to engage in any trade. Hence, easy-forex® shall not be held responsible for any outcome of trading decisions, in regards with these reports or similar reports. You hereby acknowledge that using the information entailed in these reports is at your sole responsibility and you will have no claims with regards to these reports against easy-forex®. If you do not agree to this, you are strongly advised not to use these reports.
Easy Forex Pty Ltd (AFSL 246566 ABN 73107184510) makes no recommendations as to the merits of any financial product referred to in this website, emails or its related websites and the information contained does not take into account your personal objectives, financial situation and needs. Easy-Forex recommends that you read the Regulation Page, The Product Disclosure Statement, the Terms and Conditions and the Financial Services Guide before making any decision concerning Easy-Forex’s products.