Analysts at Rabobank note that on Saturday, the US federal government closed down partially as President Trump refused to sign a spending bill that does not include funding for the border wall, while the Democrats have made clear that they will not vote for such a spending bill. Key Quotes “At this point in time
GOLD & CRUDE OIL TALKING POINTS: Gold prices fail to capitalize on market rout, haven flows buoy US Dollar Crude oil prices follow stocks downward amid market-wide risk aversion Holiday market closures drain liquidity as US political drama continues Traders looking for gold prices to reflect the yellow metal’s often-touted haven credentials were disappointed Friday.
That’s not surprising considering what week this is EUR/USD: 1.1666 (EUR 857m) USD/JPY: 111.50 (USD 520m) ForexLive The board is also pretty much empty for the next two days as well but things are returning a bit more to normal on Thursday and Friday. Of note, there is a strike at 1.1400 for EUR/USD worth
TALKING POINTS – US-CHINA TRADE WAR, JAPAN, RISK ASSETS, NZD, AUD, CHF, JPY US-China trade war poses a serious threat to global growth and markets, despite temporary truce Japan’s stagnation from imposition of American tariffs and USD weakness may be a lesson for China Ongoing trade talks between Trump and Xi Jinping continue to weigh
TALKING POINTS – FINANCIAL MARKETS, POLITICS, TRADE WARS, BREXIT, ITALY How and why have political speeches impacted markets in 2018? Volatility-inducing political trend is likely to continue into 2019 Risk sensitive assets and equities likely to suffer amid the turmoil See our free guide to learn how to use economic news in your trading strategy!
Analysts at Standard Chartered, points out that according to the recently concluded post-Central Economic Work Conference (CEWC) statement of China, the key economic objective for 2019 is to maintain growth within a reasonable range through more proactive fiscal policy and prudent monetary policy. Key Quotes “We think this means China will set a GDP growth
Asia Pacific Market Open – US Government Shutdown, US Dollar, Japanese Yen, NZD/JPY Wall Street experienced worst weekly performance in over seven years after S&P 500 fell 2.06% US government shutdown fears sent equities lower, USD gained with bond prices on haven bids Over the weekend, the House failed to agree on a budget. NZD/JPY
More: Mnuchin will speak on Monday with the President’s Working Group on Financial Markets The Working Group is sometimes referred to as the Plunge Protection Team. It includes officials from the Federal Reserve, the SEC, CFTC and what have you. Please note, the meeting will NOT be to exchange Christmas greetings. Ladies and gentlemen,
OPEC not happy about the drop in oil prices Brent finished on Friday down 53-cents to $53.82. That’s a 15-month low and down from $87 in October. The drop is putting heavy pressure on OPEC budgets and officials are attempting to jawbone prices higher. The current cuts are intended to last from January for six
Could Trump oust Powell? Trump believes that the Fed and not his trade policies are behind the rout in equities and as the US main indexes suffered their worst weekly loss in a decade, his frustration boiled over and he discussed firing Powell. “The president has talked privately about firing Powell many times in the
Trump wants $5 billion for a wall Congressional leaders failed to strike a deal with the White House on Friday and the government partially shut down non-essential services today. The Senate refused to sign-off on the House border wall funding bill on Friday and at midnight the wind-down began. About three-quarters of federal government programs
A look at how bitcoin performed in 2018 While the leading currency lost over 80% of its value since the “peak Bitcoin” in December 2017, many day traders made fortune during the downtrend placing the right orders at the right time. Let’s go through some examples, so you can decide whether it was within your
Three major indexes pare early gains, suffer heavy losses. Communication Services and Technology lead losses. Threat of government shutdown weighs on sentiment. After going up more than 1% in the early trade, major equity indexes lost traction and closed the day in their lowest level of the year as concerns over a government shutdown and
Analysts at CIBC, see that a partial recovery in global oil prices would allow the Bank of Canada to hike twice in the first half of 2019, giving the loonie a temporary rebound. But they warn that slowing housing activity leaves the economy in need of the export lift from a competitive exchange rate, and
China will look to stimulate Earlier today, Xinhua reported that China will cut taxes and work the keep liquidity ample in the year ahead. “The external environment is complex and severe, and the economy is facing downward pressure,” Xinhua said, adding that the government would maintain its pro-active fiscal policy and prudent monetary policy next
Analysts from Mizuho Bank, expect a slowdown in economic growth during 2019 on the back of the TRY depreciation. Key Quotes: “Turkey’s economic growth rate is expected to decline sharply in 2019 reflecting the Turkish lira’s plunge in summer 2018”. “The rise of inflation will squeeze real incomes, causing personal consumption to stall.” “Given the
What a mess The S&P 500 is at a fresh low, down 43 points to 2432. It’s quadruple witching and one of the final trading days of the year. Aside from the drop, what’s impressive is that volume yesterday and today has been very high. That could be a hint that there is some forced
Japanese Yen Talking Points USD/JPY bounces back from the session-low (110.93) as New York Fed President John Williams defends the recent decision to raise the benchmark interest rate to 2.25% to 2.50%, but the Relative Strength Index (RSI) appears to be on the cusp of flashing a bearish signal as it flirts with oversold territory.
On Wednesday, the Federal Reserve rose the Fed Funds rate and changed growth forecast. The FOMC meeting lead to lower bond yields, a weaker dollar and a global decline in equity markets, showing that investors are in the grip of a growth scare, explained analysts at BBVA. Key Quotes: “The FOMC projections are unambiguous: the
Next Stock Market Crash Prediction Talking Points: Does the return of volatility to equity markets suggest a stock market crash is on the horizon? The S&P 500 has climbed above the competition, but is its valuation deserved? The cases for continued growth are few, but present nonetheless If a stock market crash were to occur
EUR/USD, US Dollar Talking Points: – Next week brings the Christmas holiday and the week after brings New Years. This means that next week’s trade will likely be governed by low-liquidity conditions and given the volatile nature of some of the items in the headlines, this could be an especially dangerous time to hold weekend
MARKET DEVELOPMENT – USD to Post Worst Week in 3-Months USD: US Dollar is recouping some of its losses, however, the index remains on track for its worst week in 3-months as global growth fears begin to plague the USD. As such, the USD is once again losing out to the safe haven Japanese Yen.
Heavy dose of economic data and a government shutdown A busy day kicks off at the bottom of the hour with Canadian retail sales, the third look at Q3 US GDP, and the November preliminary durable goods orders report. Later we get eurozone consumer confidence, the Bank of Canada business outlook survey, the US PCE
• Risk-off mood helps the USD to recover a part of the post-FOMC downfall. • Bearish crude oil prices continue to undermine Loonie and remained supportive. • Traders now eye today’s US/Canadian macroeconomic releases for fresh impetus. The USD/CAD pair quickly reversed an early European session dip to sub-1.3500 level and climbed to fresh
TALKING POINTS – YEN, TRUMP, US GOVERNMENT SHUTDOWN, UK GDP, POUND Yen may turn higher Washington DC turmoil stokes risk aversion Possible US government shutdown threatens fragile growth outlook UK Q3 GDP revision unlikely to mean much of the British Pound Most major currencies marked time in quiet Asia Pacific trade, with markets seemingly enjoying
Forex news for Asia trading Friday 21 December 2018 Gold is looking good, ‘needs to capture the market’s imagination again’ We got a taste of Christmas/New Year FX markets here in Asia today with only minor movement. Economic data was light on. Most were lower tier (generally not forex moving upon release) although we also
Asia Pacific Market Open – US Government Shutdown, US Dollar, Canadian Dollar, Japanese Yen Global stocks accelerated selloff after Fed rate hike Wednesday: Asia, Europe and the US ended red US government shutdown concerns increased, further souring sentiment as USD fell with S&P 500 Anti-risk Japanese Yen looks past CPI data, may rise as Asia
Higher high over the last three days but may be running out of steam The USDCAD has been respecting a lower trend line over the last few weeks on the hourly chart, and also a topside trend line over the last few trading days. Today, the price moved above that higher trend line, and should
Europe followed the FOMC and a sea of red in US stocks with losses of its own on Thursday. The DAX index, which is now down 21.6% from its 52-week high, fell 1.4% to 10,611.10. Germany stocks were lower after the close on Thursday, as losses in the Technology, Food & Beverages and Retail sectors