There is another chance to sign a Brexit agreement

IFC Markets

Master Trader
Oct 31, 2012
London (Great Britain)
All US stock indexes slightly gained on Tuesday

Dow quotations increased due to the good reporting of the largest retailer Walmart (+ 2.2%), which announced sales growth for the 18th consecutive quarter. Nasdaq and S&P500 gained due to the growth of Amazon shares by 1.2%. The Chinese division of this American online store is going to purchase a large Kaola shopping site in the PRC. The ICE US Dollar Index significantly decreased after the announcement by John Williams, the head of the Federal Reserve Bank of New York. He said the Fed rate increase is possible only in the event of an unexpected acceleration in the growth of the American economy or inflation. Today at 20:00 CET materials of the January Fed meeting will be published in the United States.

Quotations for GBPUSD rose for more than 1% yesterday.

The pound has noticeably strengthened and updated the 2-week maximum before today's meeting of UK Prime Minister Theresa May and the head of the European Commission Jean-Claude Juncker. They will discuss the terms of the UK exit from the European Union, scheduled for March 29, 2019. After the negotiations Teresa May will present her next Brexit plan in parliament. A vote on Parliament approval will be on February 27th. The EURUSD rate rose again above the psychological mark of 1.13. It can be noted that for 10 months the single currency has been trading in a wide range of 1.18-1.13. Its yesterday's increase contributed to the good data on the surplus of the current account of Germany. In 2018 it was the highest in the world and amounted to 294 billion $ . Japan ranked as second one with 173 billion $ in terms of current account surplus and Russia ranked third with 116 billion $. Most European stock indices dropped yesterday, as the entire European banking sector "sank" due to the weak quarterly reporting of HSBC bank (-4%). Today at 16:00 CET the EU a preliminary consumer confidence index for February will be released.

The Japanese Nikkei continued gaining against the background of further weakening of the yen

The cheaper yen makes Japanese exporters more competitive. The shares of Toyota Motor (+ 1.4%), Mazda Motor (+ 0.9%), SoftBank (+ 3.6%), Daikin Industries (+2.2), Honda Motor (+ 2.4%). The Japanese currency continues regain due to the announcement by Haruhiko Kuroda, the head of the Bank of Japan, about a possible additional easing of monetary policy. The regulator implemets emissions to repurchase assets following the example of the quantitative easing (QE) of the US Federal Reserve amounted 80 trillion yen per year. The current weakening of the yen also contributed to macroeconomic data on a significant increase in the trade deficit in January. It was the maximum for 5 years. An additional factor on Nikkei's growth was the hope for the success in US-China trade negotiations. According to market participants this can reduce the heat of trade wars and contribute to an increase in Japanese exports. In January it collapsed by 8.4%. Australian and New Zealand dollar also significantly strengthened in anticipation of the US-China trade negotiations progress.

Quotations for sugar demonstrated significant gain

In nearest future sugar will begin to regain the rise on oil prices. The dynamics of these two assets has recently become increasingly related as the largest sugar cane producer Brazil is increasing its production of biofuels in the event of a rise in price for gasoline from petroleum. Approximately 140 kg of sugar or 75 liters of bioethanol can be produced from 1 ton of sugar cane. An additional factor in the current growth of surge quotations was the Indian National Federation of Cooperative Sugar Factories forecast about the possible reduction of sugar production in India.