Encouraging Catalyst Lifts PH Stocks 'CORRELATION'

Significant Events in #FX Markets a Welcome Treat!

On the other side of the market in Asia, with the recent upgrade S&P PH Credit Rating to 'positive' have indeed been an encouraging news that came in a timely manner when the #PSEI was at its lowest levels. With a registered low at 7526 almost all measure of its underlying stocks have declined for a period of three (3) months from January peak at 9078.

As of May 3, 2018

Update PSEI Chart as of May 4, 2018

However, prior to the 'Positive Credit Rating' price action where seen at their best probable levels where 'Risk' of further declines were likewise limited as net change on the PSEI barometer has already narrowed. While the PSEI relative EPHE ETF have signaled the same variable entry at 32.21 with substantially good volumes / market flow reports. The probability of the recovery was good and the end result is even better. Although this price recovery is limited as a relief which can not be called a trend reversal until certain new highs can be marked on the way up.

Institutional firms, brokers / dealers, and local retail investors have initially taken advantage of this report while bargain-hunting for beaten down stocks. The market's relief recovery came about from the welcomed historic peace meeting with North and South Koreas respective presidents.

Thus giving global stocks and foreign exchange markets the initial catalyst a more positive outlook for the US Dollar overall. While this occurred, a retrieve for the PHP back to the levels 51.62 was also seen but this move was mainly from the reactions in the Global Forex trading market's reaction related with the ECB's stance unchanged monetary policy.

That drove the European majors such as the EURO and CABLE back down to as low as 1.2055 and 1.3750 levels. These moves have led most FX investors led by institutions to Euro/USD short-covering positions as the USD Index (DXY) pulls back from its recent session highs nearing the 92.00 basis point levels and closed at 91.54 for the week.

With that said, the 'REAL CORRELATION' of stocks and the FX market can best be seen through 'PRICE ACTION ANALYSIS' which goes beyond charting and technical analysis.