Forecasts and signals from trader Demetris
The main events of today August 9, 2021
Inflation warningsJens Weidmann, a member of the Governing Council of the European Central Bank, warned that inflation in the eurozone could grow faster than expected and urged not to delay the pandemic bond-buying program. Weidmann, who is also president of the German Bundesbank, said that higher inflation rates cannot be ruled out, and that he would urge to closely monitor the risk of too high inflation.Tender warPhilip Morris International is raising its bid for the British asthma drug manufacturer Vectura Group, valuing Vectura shares at about 1.02 billion pounds. So the company exceeds the competing offer made by the private investment company Carlyle Group on Friday. Philip Morris is looking for new sources of income, in addition to cigarettes, as more and more people in developed countries are quitting a very bad habit – smoking.IPO VirginVirgin Atlantic Airways is reportedly considering a public offering in London as the company prepares to rebuild its business after the pandemic. Executives are holding discussions with bankers and potential investors and may announce the company's IPO plans in the fall. The listing may come after a difficult 18 months for Virgin, when flights almost stopped around the world due to the coronavirus pandemic.VaccinationAnthony Fauci, a leading infectious diseases doctor in the United States, said he "strongly supports" accelerated vaccination of people with weakened immune systems. A third of Israel's adult population over the age of 60 has already received a revaccination, as the country is struggling to contain the surge in diseases. Meanwhile, the European Union is likely to discuss the resumption of travel restrictions for visitors from the United States next week, as the number of cases of coronavirus in America is growing again.TodayToday, Hargreaves Lansdown, PageGroup and PostNL are among the largest profit-reporting firms in Europe. The German manufacturer of the Covid vaccine BioNTech will also report its earnings. Atlanta Fed President Rafael Bostic will speak at a virtual event on the inclusive economy. From Monday, the French will be able to visit cafes and travel by train only with a" health pass " (health pass). Football star Lionel Messi may join Paris Saint-Germain after two decades in Barcelona.
USD/JPY - Technical analysis of the USD/JPY currency pair for August 2
During the Asian trading session on Monday, the USD/JPY currency pair is trading with a decrease in quotations, remaining within the current support level at 109.41 and the resistance level around the 110.35 mark.The moving averages with a period of 21 and 55 days continue to move down with a slight acceleration and increasing divergence, which demonstrates the strengthening of bearish trends in this market in the short term. The four-hour chart remains slightly below the exponential moving averages, which also tells us about the downward potential of this market today.The technical picture shows the loss of momentum of sellers ' positions, as the MACD histogram entered the area just above its central line, and the strength indicator of the current RSI movement returned to the 50 line, confirming the weakening bearish trend in this market in the short term.
USD/CHF - Technical analysis of the USD/CHF currency pair for August 2
At the auction in Asia on Monday, this currency pair is trading with a noticeable decrease in quotations, remaining within the current support level at 0.9051 and at the resistance level around the 0.9162 mark.On the four-hour chart, the moving averages with a period of 21 and 55 days continue to move down, accelerating and increasing the divergence, which indicates the strengthening of the downtrend in this market. The price chart remains in the area significantly below the exponential moving averages, which is a sign of the growing downward potential of this market in the short term.The technical picture also demonstrates the advantage of sellers in this market, since the MACD histogram has entered the area below its central line, and the strength indicator of the current RSI movement has fallen below the 30 line, which confirms the continuation and strengthening of the downtrend and the oversold nature of this trading instrument in this market in the short term.
WARREN BUFFETT INDICATOR JUMPS TO RECORD HIGH
One of the indicators that assess the situation on the world stock market is the Warren Buffett indicator. It is calculated by dividing the total capitalization of stocks traded in markets around the world by the volume of global GDP. An indicator value above 100% indicates that global stocks are overvalued. This means that at any time they can sharply fall in price. To date, the Warren Buffett indicator has reached the level of 123%. The previous record value of this indicator was 121%. Buffett previously said that the high value of the indicator should be considered by investors as a warning about a possible stock market crash. At the same time, analysts note that the Buffett indicator has two serious drawbacks. First, current stock prices are used to calculate it. At the same time, the data on world GDP are taken for the previous period. In addition, some countries do not regularly publish statistics on gross domestic product and there is no confidence in their reliability.