Forex Today; What You Need To Know For November 8, 2019

November 8, 2019 by  
Filed under Featured, Trading in the Market

Contradicting reports about the state of US-Sino talks have been whipsawing markets. The world’s largest economies are set to include a rollback of tariffs in the phases of the trade agreement. However fierce internal opposition is holding progress back. Among White House advisers, Larry Kudlow has expressed optimism and readiness for concessions, while Peter Navarro has said that nothing has been agreed, and everything depends on President Donald Trump. Beyond the trade talk the University of Michigan’s preliminary Consumer Sentiment Index for November is set to show a small improvement, confirming the strength of the consumer. As we head into the Chrismas shoppingbseason we expect this to hold true.

Chinese trade balance figures have shown a smaller than expected drop in exports.

GBP/USD is struggling around 1.28 after the Bank of England painted a more gloomy picture of the local and global economies. Two members of the Monetary Policy Committee voted for a rate cut.  This is actually a realistic look at the whole situation.

The European Commission’s new forecasts have included a downgrade of GDP forecasts from 1.2% to 1.1% this year and from 1.4% to 1.2% in 2020. German trade balance and French industrial output are eyed today. This data will be negative ans reinforce earlier data of a German recession.

AUD/USD has been losing ground after the Reserve Bank of Australia’s Summary of Monetary Policy has shown that the bank is reluctant to raise rates even if the global economy picks up.

Forex Today; What You Need To Know For November 7, 2019

November 7, 2019 by  
Filed under Forex Tips

Today the Bank of England has its policy meeting. This should be an anticlimactic event. Their hands are tied with a general election set for December 12. Short of them stating they are thinking of raising rates to hedge against possible inflation, this should be a non-event. All of this non-anticipation has lead to the pound being steady against the Euro.

Unlike the pound, the Euro is having its own issues. Based on current data, inclydingbtoday’s German Industrial Output, Germany will enter a recession next month. Since theybare theblargest economy inbthe Union this will spell trouble the whole block. All of this will put pressure on the Euro in the short and intermediate term.

On the US/China trade front we have word that both sides must remove imposed tariffs for a “phae one” trade deal to be completed. The Chinese have stated their willingness to talk about how this will happen. Meanwhile the White House has said that a meeting to sign an interim trade deal between President Trump and Chinese President Xi Jinping could be delayed until December. So we wait still.

Forex Today; What You Need To Know For November 6, 2019

November 6, 2019 by  
Filed under Forex Tips

Markets seem to be taking a breather today as we wait for further confirmation of a US/China “Phase One” trade deal. Everything we are hearing and reading is pointing in that direction at least. We expect one or two more rounds of negative reports before it is all said done.

As we wait the US Dollar has stepped back a bit against other major currencies. This includes yen. The Chinese Yuan also has stepped back a bit.

We should see thhe dollar strengthen more as trade worries ease. All economic data is pointing towards US economic growth.

The UK pound isnundwr pressure and we expect this to continue through the election. So much uncertainty will create some trading opportunities.

Forex Today; What You Need To Know For November 5, 2019

November 5, 2019 by  
Filed under Forex Tips

The UK service sector index went up .05 in October. Basically flat. This is the worst reading since 2009. New business fell fornthe 2nd month in a row. People and business in the UK are concerned about spending cash until Brexit is complete. This is a sign that there will be a recession before Brexit takes place.

The Bank of England is expected to keep rates the same. There has been talk of the Bank would be less willing in the future to ease. This would be foolish based on the reports we have seen about the UK and EU economies.

The dollar has held its own with new reports on US/China trafe that are very positive. The dollar was up against the safe-haven yen further strengthening the dollars position. At the same time the Yuan was up against the dollar, dipping below 7.

Forex Today; What You Need To Know For November, 4, 2019

November 4, 2019 by  
Filed under Featured, Forex Tips, Trading in the Market

The dollar is under pressure today. The dollar index fell off of Friday’s 3 month high of 97.15. Things looked good Friday after the jobs report showed that things were not shrinking as fast as anticipated. However, later the Institute of Suppy Management reported contraction in the manufacturing sector for the 3rd consecutive month.

The dollar is also underpressure as it and the Australian dollar, Canadian dollar and New Zealand dollar all have room to drop interest rates. The volitility will be minimal in all major currencies due to minimal interest rate differentials. The 4 with room to cut will be the weakest as other major currencies are seen as stable.

The euro was lower as traders wait for the new Ew ECB President Legarde to gove her first speech. She has already stated, as former ECB President Draghi did, a disappointment in Germany and the Neatherlands for not investing their surpluses into growth for the whole Union. This kind of situation will be the downfall of the EU at somepoint. Taking those controls away from memebers is the only way the social engineering crowd will be able to do what they want. Sadly it means the countries in the EU have to give up their sovereignty.

The pound held steady as there is an assumptuon that there will not be a hard Brexit now. The UK central bank hold policy meetings this week, as does the Australian central bank. Both are expected to keep things steady. There is concern that the UK central bankers will want to ease off their tightening stance headed into the election but it is just a concern.

Forex Today; What You Need To Know For November 1, 2019

November 1, 2019 by  
Filed under Forex Tips

As we enter the 2nd to last month of the year we see the Dollar lower against major currencies. US employment data due out today shoyld be a mixed bag. We expect that the General Motors’ strike will drag these number’s lower.

The dollar also is lower because traders are assuming that thebworlds economies are bottoming out. This is based on lower economic numbers from Asia. This is also based on a recent Business Survey from Ciaxin/IHS Markit showed that output and new orders have been increasing.

The pound and Euro were both up against the Dollar. The pound has gone as far as it will for now due to the election next month. Trade talk between the US and UK may come into focus. US President Trump said he does not see a trade deal getting done with the UK based on the Brexit deal the UK has made with the EU. This is probably posturing and Trump has a new thing to talk about.

Forex Today; What You Need To Know For October 31, 2019

October 31, 2019 by  
Filed under Forex Tips

Happy Halloween

In a very anit climactic announcement the US FMOC announced a .25% rate cut in its over night lending rate. While this was widely expected and already priced into the market, the words in the announcement caused alarm and weaked the dollar accross the board. The US Fed did not indicate continued easing which alarmed traders. Most traders are expecting a worldwide recession soon. This change in the wording regarding any future rate cuts gave the impression the the US Fed was out of touch with the markets and world events.

In addition to the Fed news, the dollar was also under on US/China trade news. The Dillar was lower against the safe-haven yen by the news that Chile has withdrawn as host of an APEC summit in November where the U.S. and China had been expected to take major steps towards resolving their protracted trade war. The Chinese also stated that they did not see a negociated settlement coming yet. All of this was very disappointing after all of the talk from US President Trump.

The Bank of Japan kept its monetary policy steady on Thursday. However, they did introduced new forward guidance to more clearly signal the future chance of a rate cut. This is underlining its concern over global economic risks.

The British Pound was higher on the news Parliment agreed to General Elections in December.

We look at what is happening in Chile with a heavy heart. We hope for the safety of all protestors and pray their goverment will listen instead of shoot.

Forex Today; What You Need To Know For October 30, 2019

October 30, 2019 by  
Filed under Featured, Forex Tips, Trading in the Market

Chile, US GDP, FMOC interest rate decision, and trade all are in play today.

Chile erupted in protest last Friday over a fare hike that saw high school students come out in mass. This continued into yesterday as changes were made in the cabinet but also saw the military in the streets. 18 people killed, over 1000 shot, as people are fed up with 30 years of oppression. We will continue to watch these events and their affect on the markets.

US GDP will be announced today and then the US Federal Reserve open market committee will announce an expected change in interest rates. Economic news recently has been positive so wr are slightly concerned that they already priced in cut may not come this time. That would put a wrench in the markets.

Thinks could be interesting today so keep your eyes and ears open. Watch the Dollar index for a general fight to safety today as well as pressure on the Pound as there is concern that the election will not work in Bori’s favor.

Forex Today; What You Need To Know For October 29, 2019

October 29, 2019 by  
Filed under Featured, Trading in the Market

The UK’s Labor Party just announced they will go along with a December elections. This comes after PM Boris Johnson acknowledged that Brexit will not happen by October 31. We will now see the EU pass an extention into January of next year.

US President Donald Trump stated yesterday that the trade deal with China is all but complete. This sent US sticks higher. Once things are finally approved economies should start to stabilize a bit. World wide recession fears are still a real thing and time will tell.

We have to wonder, as we mentioned last week, if currecy markets will start to become stagnant.

Forex Today; What You Need To Know For October 28, 2019

October 28, 2019 by  
Filed under Featured, Trading in the Market

Its a quiet start to a week where everyone is looking towards Wednesday. On Wednesday we will get the US GDP numbers and then the FMOC decision on interest rates. As we stated last week, we think the market has already priced in a rate cut.

On Friday the office of the US Trade Representative announced that the US and China are nearing a Phase One agreement on trade. This is extremely positive and should stay that way. Although the US political situation will have to affect the markets at some point.

The Pound will continue to be under pressure as PM Boris Johnson continues fighting with Parliment. It would seem snap elections are on the horizon.

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