First Greece, Now Italy, Portugal Next? – The worst is in the making for the EURO.
While most investors are focused on Italian politics – the parallel currency ‘mini-BoT’ fears and potential for a constitutional crisis – Spain is now facing its own political crisis amid calls for a no-confidence vote against Rajoy. However, ‘Spaxit’ remains a distant concern for investors as another member of the PIIGS peripheral problems is starting to signal concerns about ‘Portugone’? Read More @https://www.zerohedge.com/news/2018-05-27/first-greece-now-italy-portugal-next
How worried should we be about an Italian debt crisis?
Political backlash to slow growth and immigration has produced the least cooperative government imaginable in Italy, a coalition between the left-populist Five Star Movement (M5S) and the right-populist Lega. And borrowing costs have started to rise in reaction. Does this mean that a crisis is imminent? If so, how bad would it be? Read More @ http://bruegel.org/2018/05/how-worried-should-we-be-about-an-italian-debt-crisis/
WHAT IS USD INDEX TECHNICALS SAYING?
US GDP tonight will be all good and we are expecting another rally for USD as a safe haven together with JPY. The trend is in-tact for 94.50 – 95$ – be cautious if you are trying to short the USD. 4 Central will speak today and we are expecting massive volatility for most currencies today with USD in favor.
TODAY’S NEWS THAT MIGHT AFFECT YOUR TECHNICAL TRADES.
- 5.00am – RBNZ will release their financial stability and is expected to be the same as last 6 month – A media conference is usually held 120 minutes after release time and is webcasted from the RBNZ website; It provides insights into the bank’s view of inflation, growth, and other economic conditions that will affect interest rates in the future;
- 8.00am – Kuroda will speak and his tone should remain the same as last time, which is maintaining the monetary policies. JPY will be affected by Lira and EURO situation bundled with IRAN and US standoff – we maintain BUY for JPY.
- 9.10am – RBNZ Gov will speak and is expected to see little or down movement. We maintain SELL for NZD.
- 1.00pm – Japan Consumer confidence is expected to be no change or good.
- 2.00pm – German will release their retail sales and Import Prices both of which is expected to be good. We stay cautious on EURO for now.
- ALL DAY – we wait for Germans to release their CPI data which will bring much volatility for the EURO.
- 2.45pm – France will release their GDP – expected to be no change. Little or no movement for EURO.
- 3.00pm – Spain will release their CPI and is expected to be good – EURO might a little pullback upwards.
- 8.15pm – US will release their ADP and is expected to be good in favor of the USD.
- 8.30pm – Canada will release their Current account and is expected to be weak – more downside for CAD awaits,
- 8.30pm – US will release their GDP data which will be watched by traders – expected no change from the last but we believe the be good for US.
- 10.00pm – CAD will go to action with BOC releasing their rates and statement – we are expecting a swing and we will trade only after the news and maintain SELL for CAD.
- 10.45pm – CHF will go to action with SNB making a statement – more weakness ahead for CHF.
The market today is going to be very volatile and we are still in favor for USD this week. Be always mindful of your money management.
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