European Union leaders are open to new deals with China. In order to hedge the current risk of US trade tariffs China has spread its trade network far and wide. All over Africa, Chinese companies have invested and gained majority shares in mining companies, utilities and agriculture. Next week we will see during the EU-China summit what investments China will make...
Since the start of the year, oil has been slowly and steadily heading higher. OPEC+ has been doing a large amount of production cuts and a subsequent rally has persisted in the market. Even when Crude Oil inventories rise in the US, this has little effect on the price of oil. But more often we see a fall inventories and price rises in reaction to this. Our view...
GBPUSD We finally have some clarification for one of the biggest market risks – Brexit. The no-deal Brexit has been blocked in the British Parliament. This sent the pound higher and provided stable footing for traders to speculate from. Additionally, Prime Minister Theresa May has reached out to the Labour party’s Jeremy Corbyn for support. They used to be enemies...
Bitcoin Cryptocurrency is back on our radar. There was a sharp increase across the board for major cryptocurrencies especially the heavyweight Bitcoin. On the Chicago Mercantile Exchange Bitcoin traded more than 10k contracts in one day. The volume is about 20 times the average for 2019. There is definitely a big fish in this market and he is set on buying. This...
US Dollar We are entering a period of time in the financial markets where it is difficult to sustain trends. All over the world, monetary policy from the central banks has been mostly negative. Guidance from the Swiss National Bank, the Federal Reserve and from the European Central Bank has been that the economic slowdown in their respective countries and all...
Pound Sterling The British government and the Pound along with them seem to be totally confused on what action to take. The Pound has been in a flat and the British parliament has also been undecided on what direction they plan to take things. It has been a long and unproductive 2.5-year ordeal after the initial Brexit vote. The outcome is worrisome, Prime...
New Zealand Dollar The New Zealand Dollar fell sharply after the rate decision from the Reserve Bank of New Zealand. There were no changes to monetary policy but they did make clear that the next move would be a rate cut. Market participants jumped on this open and clear language to capitalize and price in what would most likely happen in the near future....
Pound weakness needs to be capitalized on. The political uncertainty around Brexit is at an all time high and the pound is showing weakness despite strong employment and CPI data sets. Technically the currency pair is exhibiting strong bearish signals. On the daily timeframe price has dropped below the 50EMA and 200EMA signaling a high probability of a...
Crude oil inventories have the sharpest decline in 8 months. With a forecast of 0.309M barrels of Crude Oil Inventories the actual figure was -9.589. On top of the dollar weakness this has caused WTI oil futures to jump above 60$. Oil is trading above the 200EMA which will act as a strong level of support. Fundamental news that are affecting the price of oil is...
Safe haven assets are on the rise. In the time to come we believe that safe have assets will continue their climb. US president Donald Trump recently stated that tariffs on China will stay until they comply with the “deal”. The “deal” is very difficult to comply with as it includes buying additional US goods and enforcing international copyright laws. This whole...
The Federal Reserve has announced that they will not be raising interest rates and that they do not plan to in the foreseeable future. Chair Powell kept repeating that the economy is in good shape. The dovish surprise was great; besides the downgrade of growth, inflation, and interest rates we now know that the quantitative tightening (QT) program will be...
USD At the start of the year, markets priced in two interest rate hikes from the Federal Reserve. Then that number dropped down to one after dovish remarks from Fed Chair Jerome Powell which led investors to lower their expectations. Now with another surprise we have an even more dovish stance that was not necessarily priced in by investors. The dollar drops like...
Hello Traders! Technical Analysis The USDJPY has been enjoying a smooth upward growth for the dollar. Recently the rhetoric from the Federal Reserve has been very dovish. Combined with the economic slowdown and falling wage growth in the US the pressure is building on the US dollar. Technically the rate of growth of the currency pair has increased before...
Gold is taking off. Working to new highs towards 1350-1360. There is a strong point of resistance, the 2013 trend line, but once we pass that there is a lot of room to work with. 1376 is the next strong point of resistance. Until then there is a lot of room to scalp. A good place to put stop losses for longer-term trades would be 1308 because if price reaches...
Automakers are under pressure. Trump has been alerted by the US Commerce Department that imported cars pose a security threat to the US economy. We wonder what he will do about it. This will inevitably have a negative effect on Japanese and European automakers as vehicle exports play a large role in their respective economies. Volkswagen AG (VOW) This stock has...
The dollar continues its advance. Investors see a global slowdown but figure the US economy to be the biggest and strongest so they put their bets on it coming out ahead. Trump has signed a shutdown avoidance agreement but is now pushing for a national emergency in order to siphon funds from the budget agreed on by congress. Very sticky situation that could lead...
Oil climbed, and broke through the neckline of the reverse head and shoulders pattern that has been in play for the past few months. The growth was due to supply cuts and reduced output from OPEC countries. Russia has also agreed to participate in the cutbacks. Saudia Arabia will be repairing a damaged offshore field, and this will decrease supply and increase the...