ZFX: Merger speculation overshadowed those negative factors

Thursday (May 14) news review

• There was a rumor about the investment bank Goldman Sachs may merge with Wells Fargo to enhance its competitiveness. The rally of bank stocks boosted the Wall Street sentiment.

• The initial jobless claims in the US totaled 2.98 million, which was a drop for six consecutive weeks, but still higher than expectations of 2.5-2.7 million.

• The June contract for WTI crude futures surged 9%, breakthrough $27 level. The hopes on reopening global economies and the production cuts are the key supports to the oil market, making the demand and supply much more balancing.

• US President Trump has warned in an interview that he could “cut off the whole relationship” with China, further escalating the tension between China and the US. He said that he is very disappointed with China in handling the spread of the coronavirus. In addition, he also pointed out that he may examine those Chinese companies listed on the US stock exchange, regarding US accounting regulations.

• The global pandemic of new coronavirus is still severe, with 4.4 million confirmed cases worldwide and more than 300000 deaths.

ZFX analyst Jacob Leung said that the market is worried about the tension between China and the US. In fact the negative factors are more obvious in the market, once the rumor of the M&A fade out, it is likely to end this short-term move.

AUD/USD

Follow-up recommendation: wait and see. (Recommendation does not take into account the bid-ask spread factor)

Position follow-up and profit and loss: 0.6460 has been short, the target changed to 0.6440, and the stop loss is 0.6475. (Holding) (Recommendation does not take into account the bid-ask spread factor)

Cumulative profit and loss: 495 pips

EUR/USD

Follow-up recommendation: wait and see. (Recommendation does not take into account the bid-ask spread factor)

Position follow-up and profit and loss: 1.0825 short, not reached, change to 1.0795 short, target 1.0775, stop loss 1.0810. (Pending) (Recommendation does not take into account the bid-ask spread factor)

Cumulative profit and loss: 380 pips

GBP/USD

Follow-up recommendation: wait and see. (Recommendation does not take into account the bid-ask spread factor)

Position follow-up and profit and loss: 1.2230 has been long, and the stop loss is 1.2210. (Stop Loss) (Recommendation does not take into account the bid-ask spread factor)

Cumulative profit and loss: 255 pips

GOLD

Follow-up recommendation: 1725 long, target 1731, stop loss 1718. (Recommendation does not take into account the bid-ask spread factor)

Position follow-up and profit and loss: 1710 long, target 1717, stop 1703. (Cancelled) 1724 has been long, hit target 1730. (Take profit) (Recommendation does not take into account the bid-ask spread factor)

Cumulative profit and loss: $1

USOIL (WTI)

Follow-up recommendation: 28.6 short, target 27.8, stop loss 28.9. (Pay attention to the OTC quotations may have differences) (Recommendation does not take into account the bid-ask spread factor)

Position follow-up and profit and loss: 23.8 short, target 23, stop loss 24.4. (Pending) 26.2 has been short and the stop loss is at 26.5. (Stop Loss) (Pay attention to the OTC quotations may have differences) (Recommendation does not take into account the bid-ask spread factor)

Cumulative profit and loss: $10.2

US30 (Dow)

Follow-up recommendation: wait and see. (Pay attention to the OTC quotations may have differences) (Recommendation does not take into account the bid-ask spread factor)

Position follow-up and profit and loss: 23000 has been long, stop at 22850. (Stop Loss) 23550 has been short, with a target of 23250 and a stop of 23800. (Holding) (Pay attention to the OTC quotations may have differences) (Recommendation does not take into account the bid-ask spread factor)

Cumulative profit and loss: -650 points

Risk Warning: The above content is for reference only and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations conducted in accordance with this article. Please be firm in your thinking and do the corresponding risk control.