I am waiting to see how the initial reaction is the second rates are released.
I am expecting the market to suck some sell stops at the bottom then power through.
Readings on the release is hawkish and structure is bullish on EU and EJ. So, we will see!
Wait and see how price reacts and get ready too buy!
Good Luck!
Once again the ECB is challenged with managing market expectations, while at the same time assuaging concerns within the governing council that the prospective tightening profile (if we can call it that) is starting to lag the growth seen (on average) in the region. Emphasis is being placed on the possible wording on the easing bias, which naturally is hard to ...
Talking points:
- Investors prefer not to take risks before the decision of the Bank of Japan, fix profits;
- Democrats and Republicans can not agree on financing the government, investors are slow to sell the dollar - because the consequences for the economy are not obvious. The Senate will vote on Monday;
- OPEC excites the market with a statement that ...
All the major gloom on US currency has been priced by market participants this week, pulling back the index to 93.00 before the announcement of tax-cut package details. Thinner volume across the Pond, as well as elevated market concerns revealed the market majority preferred to cut wagers on US currency before fiscal stimulus news come out next week. And this was ...
- following positive PMI data, this will bring the EUR back to area of resistance, however I believe the pair will retest this level leading to a bearish move towards the monthly support of 1.1450
- I believe the ECB will remain dovish in the upcoming meeting in regards to the QE programme as this is necessary to secure the gradual convergence of inflation towards ...
Oil market
The oil market continues to master successively new peaks, rising on Monday to the highest level since July 2015 . Oversupply is steadily declining while Saudi Arabia's readiness for changes looks even more reliable against the backdrop of anti-corruption detentions in the higher echelons of power in the kingdom.
Prince Mohammed Bin Salman made a ...
Oil futures turned out to be less volatile this week than forecasted, the level of $60 per barrel is at stake on the Brent benchmark and the Saudi prince is absolutely not shy to openly support the extension of oil pact after March 2018.
WTI posts small losses on Friday as its buoyancy lags behind Brent’s as the increase in US output limits advance. The spread ...
ECB
European stock markets and the euro stood still in anticipation of the results of ECB meeting, while in the fixed income market there is a slight rush and the price of bonds is moderately growing. The yield of US Treasuries also fell after a rise to a seven-month peak on speculation about a new Fed head, likely to be a candidate with a more aggressive policy ...
Despite the solid amount of bets on the hawkish outcome of ECB October meeting, where a decision should be made to cut money supply, Draghi does it all to play down the event.
At the conference in Frankfurt, the president of ECB once again recalled positive aspects of cheap liquidity, saying that low rates create a window of opportunity for European governments ...
Trump tax reform
Predicting the failure of the Trump tax reform because of its scale and unclear double-side backwash, skeptics apparently understated the president's negotiation skills.
Despite initial skepticism, the number of supporters of the tax cuts is growing rapidly among Republicans. On Monday, it was clear that the level of approval allows for rolling ...
September ECB Minutes
World indices are descending from record highs, while European investors are waiting tensely for the protocol of ECB meeting in September to get more information about the regulator's intentions to curtail monetary stimulus.
CFTC data over the past week showed that hedge funds were gaining positions on the European currency, despite weak ...
ECB prepares for the move
On the eve of a turning-point meeting in October, the ECB provided deeper insight in its plans of tapering off the asset purchase program. A recent statement by the regulator says that commercial banks should increase the amount of reserves to cover toxic debts next year. Such a measure looks like reinsurance before ECB starts to cut ...
Inflation holds back the ECB
The chief ECB economist, Peter Prat, expressed concerns over the weak inflation in September, saying that while carrying out stimulus cuts ECB should not forget about inflation targeting. The official hinted at the ECB's high caution in this regard. It should be noted that the conduct of money supply shocks is a very sensitive and ...
Catalonia Independence
Independence in Catalonia as a harbinger of the political crisis in Spain. How can the division of the country could affect the euro?
Any political crisis is a bad example for other peoples or nationalities wishing to take advantage of the right to self-determination (in the Spanish Constitution of 1978 there is no such right). In the ...
Strong US GDP
The data on US economy released on Tuesday was yet another proof that the Fed needs to raise rates in December. US GDP grew at a higher pace in the second quarter than expected. Inventories rose in August by 1 percent, reflecting the confidence of producers in improving consumer demand outlook. Curiously, GDP was resistant to a drop in inflationary ...
The Federal Reserve left interest rate unchanged at the meeting on Wednesday, but surprisingly saw December hike appropriate despite persisting slack on inflation front.
As expected, the Fed set a green light to balance sheet cut, amounted 4.2 trillion. dollars, most of which has been amassed after the 2008 mortgage crisis. According to new economic forecasts, 11 ...
I wanted a break of this support level. But I woke up this morning to see that the price didn't close below. SO, the price could bounce off this support back on course to 1.2. ECB still wants to stop euro growth temporarily, but the markets are dumb and to think like a dumb person, makes me go long. Br-exit talks later. stay Chunese
September FED meeting
US fixed income and stock markets are preparing to lose cushion as Fed may announce the onset of balance-sheet cut at the meeting on Wednesday. Termination of reinvestment policy and a smooth shedding of securities means a complete switching off of the "rescue mode” which has been regulator’s state for about a decade.
The market practically ...
