Entered this trade on a pin bar / stop hunt that present itself yesterday morning. Entered on this pin bar and waited for news to hit. It was positive as suspected, my take profit was back down at previous structure and did actually push through this.
With US Core Retail Sales m/m and Retail Sales m/m this week, these could mean some strength for the USD and price could break through the current support, however this looks to be a level where Buyers are waiting for a quick drop to get into the market to go long, perhaps the Euro data for Final CPI y/y may have some effect by mid week.
- Potential for a bullish week, sparked by positive PMI as this rose to 56.3 last month, from 56 in September as well as Poorer US NFP data
- Technicals support this as trend retests support levels and MACD moving averages crossover
- However be wary of next weeks UK CPI data as Mark Carney mentioned that CPI could be higher than 3% which will have adverse effects on GBP
The rising in federal fund rate FEDFUNDS is currently increasing with a mild inflation rate CPIAUCSL.
Now we can see a trend that bonds and stocks are increasing altogether. That means the economy has recovered from 2008 crisis. The higher interest rate also means higher return from stock profits.
I think the increase in the combination of stock and fed interest...
Why has the relationship between inflation and unemployment reversed in recent times? (Phillips curve) -
1. 1980s vs 2017 - Expansion in govt and consumer credit, economic boom, demographics
2. unemployment manipulation/ part time, participation rate 4pts lower 63 vs 67.
3. Servicing debt rather than consuming more goods/ services - wage v debt differential