US INFLATION IS NO WHERE NEAR AFTER RECORD DOW AND NOW THAT DOW IS FALLING – WILL US ABLE TO REACH THEIR INFLATION?
How Worried Should You Be? Traders Confront Inflation’s Reality
For almost a decade, investors have waited patiently for any hint of inflation in the U.S. economy, a sign the recovery can sustain itself without emergency stimulus from the Federal Reserve. Now they’re getting it, and many are shocked at the reaction. It landed last week with the worst stock market plunge since January 2016. A stronger-than-expected employment report with signs of strengthening wage growth sent the Dow Jones Industrial Average down 666 points on Friday, bringing its five-day loss to almost 1,100 points. Share volatility surged. Accounts of how concerned investors should be ran the gamut, from confidence traders will rush in and buy the dip, to warnings this time is different — that selloffs that begin in the bond market have a habit of snowballing. https://www.bloombergquint.com/markets/2018/02/03/how-worried-should-you-be-traders-confront-inflation-s-reality
TRUDEAU MAKES HIS MOVE – WHAT WILL DONLAD TRUMP MOVE BE?
Trudeau Threatens to Leave Nafta Rather Than `Take Any Old Deal’
Canadian Prime Minister Justin Trudeau made some of his most aggressive comments to date on dealing with U.S. demands to rework the North American Free Trade Agreement, adding he still thinks he can get the right deal for his country. “We aren’t going to take any old deal,” Trudeau said Friday at a town hall in Nanaimo, British Columbia. “Canada is willing to walk away from Nafta if the United States proposes a bad deal. We won’t be pushed around.” His comments come days after U.S. President Donald Trump threatened to get tough on trade, though he didn’t single out Nafta, in his State of the Union address. The latest round of Nafta talks wrapped up in Montreal on Monday, with all sides saying there had been progress, while acknowledging significant gaps remain on some issues. Read More @ https://www.bloombergquint.com/politics/2018/02/02/trudeau-says-he-won-t-be-pushed-around-could-walk-from-nafta
USD INDEX IS JUST A PULLBACK – MORE FALL AWAITS
- 8.00am – Australia will release MI Inflation – is an important indicator for RBA to decide for Rate Hike (Leading Indicator). We believe Australian is hot and the economy is back stronger then ever. RBA raising rate will pull the AUD to new high which they can afford to do that now and slow down the hitting economy.
- 9.45am – CAIXIN – USDCNY will go to action – we maintain our SELL position as we believe the data will be good.
- 4.15 – 5pm – EURO will release all the PMI – well we feel good to continue buying EURO. We believe the data will be mixed but overall will be good.
- 5.30pm – Expect some Volatility for EUR pairs when Euro-Zone release the Investor Confidence which we are expecting to be good. We maintain BUY EURUSD.
- 5.30pm – UK will release an important data – SERVICES PMI – which we are expecting the data to be good. We maintain BUY GBPUSD.
- 6.00pm – EURO will release the retail sales – and we see no change or a little change in favor for the EURO.
- 10.45pm – US will release the Final Services PMI – we expect the data to be lower then teh previous month.
- 11.00pm – US will release the ISM Manufacturing PMI – Which will be teh same as last month or better. Little Volatility expected – we sell if there are any new highs for USD.
- Keep your eyes and ears open for Mortgage Delinquencies data from US – Which is FED Economic Leading Indicator – WE BELIEVE the data is going to be weak.
Be cautious and Trade safely – trade the news only if you are familiar with the fundamentals or else stick to your technical pending orders and safe your day with good money management.
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