U.K. Conservative Party Fails to Secure as Government | DZHI - DZH International 
logo

U.K. Conservative Party Fails to Secure as Government

  • DAR Wong
  • 12 June 2017

Fundamental Outlook   The U.S. is facing ordeal as President Trump faces the investigation on his supposed collusion to Russians. European Central Bank is ready to extend stimulus as the package will end in December. U.K. election results in hung parliament after the Conservatives fail to secure majority seats.

The U.S. ISM services index for May expanded to 56.9 and matched forecast. Markit reports the services index rose to 53.8 in May and lower than previous month 54.0. American jobless claims reduced to 245,000 in the week ended 3 June and lower than revised 255,000 in previous week.

The testimony given by ex-FBI director James Comey in the investigation against President Trump might pinpoint Trump’s obstruction to justice. According to Comey, he was asked to halt investigation on Flynn that might be linked to collusion with the Russian operatives during the election seasons.

China’s trade surplus grew USD40.8 billion in May, under expectation but still higher than previous month. Consumer prices matched the expectation by expanded 1.5 percent in May from a year ago. Another report on producer prices eased to 5.5 percent gains on annual basis and lowest in past 5 months.

Japan’s leading indicators grew 104.5% in April and matched forecast.  Another report on final GDP in Q1 grew 0.3 percent, under consensus and lower than 0.5 percent in the previous quarter. The current account surplus expanded JPY1.81 trillion in April and better than prior month.

Eurozone’s GDP growth for Q1 ended March was revised at 0.6 percent and matched forecast. German trade surplus grew EUR19.8 billion in April.

European Central Bank holds the monetary policy unchanged. President Mario Draghi says rate cut for future is not in consideration but policymakers are ready to extend the stimulus. Central Bank has made inflation forecast at 1.5 percent growth in 2017, falling short from the 2 percent benchmark.

U.K. manufacturing production rose 0.2 percent in April and below forecast, after it showed minus 0.6 percent contraction in March. Trade deficits from import /export activities narrowed to GBP10.4 billion and better than expectation.

U.K. General Election has completed with a hung-parliament. Conservative Party fails to secure more than 50 percent of the 650 seats that would deter it to form a new government. The Conservative Party led by Theresa May wins 318 seats while Labor Party secures 261 seats among other minority winners. Instead of electing a new Prime Minister after forming a new coalition parliament, Theresa May is seeking permission from the Queen to lead the government by continuing her existing role.

 

Technical Forecast   USD/JPY has gained supported at 109.00 and closed at 110.30 region for the weekend. The trend will continue to behave resilient in short-covering for the coming week. Range is expected to escalate higher from 109.50 – 112.00 region in near future. Abandon your long-view in case the trend plunges below 109.00 level.

EUR/USD topped off recent high at 1.1280 after countering strong resisting force. We expect the trend to begin consolidation by threading sideways from 1.1080 – 1.1280 range in coming week. Probability of bearish sentiment is higher as market favors a weaker Euro for economic recovery.

GBP/USD has fallen for 2 days before weekend as U.K. election shows jittery. Technically, we reckon the range will be constricted from 1.2600 – 1.3000 region this week for consolidation while investors observe the progress in post-election. Breaking in either direction is possible but unpredictable at the moment. Hence, risk control is recommended to safeguard your position.

 

 

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.