We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bullish
GBP/USD
Bullish
USD/JPY
Bullish
Gold
Mixed
Oil - US Crude
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Bitcoin
Bullish
More View more
Real Time News
  • The inside bar pattern occurs regularly within the financial markets. Incorporating the inside bar strategy within a trading system can enhance a trader’s market analysis technique. Find out how you can use it from @WVenketas here: https://t.co/E3EWOYTYNw https://t.co/ZCT4pwc6nv
  • Greed has proven to be a hindrance more than assistance for traders. How does greed impact your trading? Find out from @RichardSnowFX here: https://t.co/aT8TZjlFqP https://t.co/C4vrTm69sE
  • Central bank independence has several advantages and disadvantages. Find out what they are in-depth with @MartinSEssex here: https://t.co/wVFXbbTxf1 https://t.co/WkwZK6wtzy
  • The $GBPUSD may be carving out a 4-year bearish candlestick pattern as the $EURGBP downtrend prolongs. GBP/JPY may rise but be wary of #Brexit risks clouding technical analysis. Get your GBP market update from @ddubrovskyFX here: https://t.co/wzV4fygKWe https://t.co/hpDmrh0LLo
  • Get your technical setups for the British Pound ahead of the key #Brexit vote in Parliament this weekend here $GBPUSD $EURGBP $GBPJPY - https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2019/10/19/GBPUSD-EURGBP-GBPJPY-Technical-Analysis-Amid-Brexit-Deal-Vote.html?CHID=9&QPID=917702 https://t.co/TBdvAY6GN2
  • The Australian Dollar could reverse gains if #Brexit is forced to be delayed. Global growth slowdown woes and other fundamental risks may also undermine $AUDUSD upside progress. Get your $AUD market update from @ddubrovskyFX here: https://t.co/VAs2C3cpQj https://t.co/9mqJ0DSLZZ
  • Here is my trading video for the week ahead: '$EURUSD, #Pound, Volatility - The Biggest Risks and Opportunities Ahead' https://www.dailyfx.com/forex/video/daily_news_report/2019/10/19/EURUSD-Pound-Volatility---The-Biggest-Risks-and-Opportunities-Ahead-.html
  • $GBPUSD is on the verge of pushing above five-year resistance. A break above with follow-through may precede considerable upside movement. Get your GBP/USD market update from @ZabelinDimitri here: https://t.co/0qfh7TRWJn https://t.co/GImIwuGodX
  • The $AUD may resume its downtrend while the #ASX 200 stock index powers higher as dovish monetary policy drives interest rates lower. Get your market update from @IlyaSpivak here: https://t.co/UPlHZrt6c2 https://t.co/EIIf9xackw
  • (Fundamental Forecast) Australian Dollar Could Wilt if Brexit Delayed, Growth Risks Hang $AUDUSD #Brexit - https://www.dailyfx.com/forex/fundamental/forecast/weekly/aud/2019/10/19/Australian-Dollar-Could-Wilt-if-Brexit-Delayed-Growth-Risks-Hang.html?CHID=9&QPID=917702 https://t.co/2aOYhblN3g
Apple Cuts Revenue Forecast on US-China Trade War, USDJPY Crashes

Apple Cuts Revenue Forecast on US-China Trade War, USDJPY Crashes

2019-01-02 23:21:00
Peter Hanks, Junior Analyst
Share:

Apple Talking Points:

  • The news saw Apple trading halted. When trading resumed, shares sank 7%
  • Revenue was revised from $93 billion to $84 billion
  • Broader stock market sentiment will take a hit from the news and likely provide a bearish headwind for the rest of the week
  • USDJPY crashed more than 300 pips in a matter of minutes which some speculators attributed to Apple’s revision as a confirmation on fears of global growth slowing

Apple Decimated After Revenue Revised Lower

The New Year looked to start out on a positive note for the US stock market after a day of mixed trading resulted in a green close. Unfortunately, that was immediately undone by an announcement from Apple shortly after the markets closed. The iPhone maker and corporate behemoth issued revised first quarter guidance downward and share trading of the company was halted.

Apple Price Chart, January 2nd

Apple revenue cut china 2019

Chart source: MarketWatch

Revised revenue for the first quarter ending December 29th totaled $84 billion, down from the $93 billion previously forecasted by the company. Shares immediately traded lower, off roughly 7% from their closing price on Wednesday evening. The 7% decline equated to a market capitalization loss of approximately $57 billion, $2 billion more than the total market capitalization of Daimler AG.

While the damage to share prices obviously bodes poorly for Apple investors, the development will likely have an adverse impact on the broader market as well. Due to Apple’s size and rationale behind the revision, equity bulls may have a rough trading day ahead of them tomorrow.

US-China Trade War, Slowing Chinese Growth to Blame

Apple CEO Tim Cook had a list of reasons behind the cut forecasts with Chinese demand at the forefront. “While we anticipated some challenges in key emerging markets, we did not foresee the magnitude of the economic deceleration, particularly in Greater China” the company said in a statement regarding the revision. The concern echoes that of many market participants that warn of slowing economic growth in China and the headwind posed by trade disagreements.

USDJPY Price Chart Daily, January 2018 – January 2019

usdjpy flash crash 2019 apple

Shortly after Apple’s decline, a series of significant currency moves took place. USDJPY plummeted more than 300 pips in a matter of minutes from ~108.200 to ~104.800 before rebounding slightly to the 106.750 level.

View our 2019 First Quarter Forecasts and Top Trades which include a USDJPY Short for the New Year.

With such an aggressive rally in the Yen, many speculators claimed the decline in Apple spurred risk aversion and thus Yen bidding as the revised forecasts confirmed concerns on global growth. Often viewed as a corporate juggernaut, Apple has performed strongly in recent quarters and such a significant bearish revision is material data speculators can point to when arguing for slowing growth. At this time, it is too early to have any concrete conclusion but USDJPY’s crash was the largest for the pair since the Great Financial Crisis.

AUDUSD Price Chart Daily, January 2018 – January 2019

audusd flash crash 2019 china apple trade war

Similarly, the sentiment-geared AUDUSD tumbled momentarily to 0.6752 from 0.6968 before rebounding to the 0.6860 level. While the moves were incredibly significant, they were exacerbated by the trading hours in which they took place.

The USDJPY crash occurred when markets are typically most thin, between the US close and Asia open. As traders return to their desks Thursday, the pairs will receive a proper conclusion to the price action. With few traders and low volume, the losses were likely compounded as mechanical sell-orders were executed at the various technical and psychological levels between 109 and 104.750.

--Written by Peter Hanks, Junior Analyst for DailyFX.com

Contact and follow Peter on Twitter @PeterHanksFX

Read more: Will the Stock Market Crash in 2019?

DailyFX forecasts on a variety of currencies such as the US Dollar or the Euro are available from the DailyFX Trading Guides page. If you’re looking to improve your trading approach, check out Traits of Successful Traders. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.