The green color dominates in the Asian markets and the US dollar is stronger in reaction to the bilateral trade agreement between the US and Mexico, which supported the risk appetite.
The US and Mexico have announced an agreement under NAFTA, opening the way to Canada for finalizing talks. USD / MXN fell to 18.60 for a moment, but the peso did not maintain its strength and the rate returned over 18.80. CAD also remains restrained and USD / CAD sits at 1.2970.The rest of the currency market remains under pressure from the strengthening USD, which is recovering from yesterday's weakening. EUR / USD stopped growth before 1.17 and returned to 1.1670. GBP / USD behaved similarly to 1.29. USD / JPY is up to 111.20.
On Monday, SP500 and Nasdaq closed on new records, sending a signal for increases for Asian stock exchanges. Japanese Nikkei225 grows to 0.3% and Chinese Shanghai Composite gains 0.1%.
Tuesday the 28th of August is another day is waiting for us without important macroeconomic information. During the European session, we will only get data from Switzerland on the level of employment in the second quarter. In the afternoon, the US consumer confidence index will be published. Wall Street can celebrate - during yesterday's session, the market finally managed to finish the correction lasting several months. The Chinese, in turn, worry about the prospect of falling investment.
DJIA analysis for 28/08/2018:
During the Monday US session, the Dow Jones Industrial Average completed a more than six-year correction - the longest since 1961, when the market could not break higher in 223 sessions. Yesterday's rise is largely due to the progress in trade negotiations. The USA and Mexico managed to reach an agreement after long talks, now Canada is waiting in line.
Let's now take a look at the Dow Jones technical picture at the daily time frame. DJIA closed yesterday with an increase of 1.01% at 26 049 points. The result above 25 886 points means the end of the adjustment lasting from February 8, when it fell by 10% from the record peak of 26 January - 26 067,57 points. The end of the correction is defined as an increase of 10% from the last hole. If an alternative definition is taken into account, ie the acquisition of a new historic summit, then to reach this ceiling, there is a shortage of fewer than 20 points.
