China Cuts Reserve Ratio, Releases 1.2 Trillion Yuan Amid Rising Trade War, Record Defaults
China’s central bank announced it would cut the Required Reserve Ratio (RRR) for most banks by 1.0% effective October 15 for the fourth time in 2018, a little over three months after the PBOC announced a smaller, 0.5% cut on June 24, as Beijing seeks to stimulate the slowing economy amid the growing trade war with the US, a slumping stock market, a sliding yuan and a record number of bond defaults. Read more @ https://www.zerohedge.com/news/2018-10-07/china-cuts-reserve-ratio-releases-12-trillion-yuan-amid-rising-trade-war-record?
The Australian dollar continues to languish at multi-year lows
- The Australian dollar continues to languish at multi-year lows against the greenback.
- On Sunday, China’s central bank announced that it will cut the required reserve ratio (RRR) by 100 basis points for some Chinese lenders from October 15.
- Chinese financial markets will reopen after a week-long holiday and will likely dictate the Aussie dollar’s direction.
The Australian dollar continues to languish at multi-year lows against the greenback, showing little reaction to news that Chinese policymakers have moved to bolster economic activity over the weekend. Read more @ https://www.businessinsider.com.au/fx-currency-aud-australia-dollar-china-rrr-pboc-us-payrolls-2018-10
Brexit deal ‘90% agreed’, says Ireland’s deputy PM Simon Coveney – GBP is all good for now!!
Ireland’s foreign minister has told Sky News a Brexit deal is 90% complete – a day after senior EU figures said a deal could be ready within weeks. Speaking to Sophy Ridge on Sunday, Simon Coveney described the chances of agreeing a Brexit withdrawal treaty as “good”. It came after EU Commission President Jean-Claude Juncker told Austrian newspapers the “rapproachement potential” had increased in the last few days and that “it cannot be foreseen whether we will finish [the deal] in October. If not we’ll do it in November”.
WHAT IS THE USD SAYNG?
USD might take a little pullback but the strength is still resilient. Watch the Support as a guide for a pullback. US economy never been better in history – inflation. consumer spending, growth are all in-tact compare to the rest of the world but there is a small error of margin – its all based on debt. Petro-dollar have help US much all these years and if other countries come together and stop the demand of the USD – things may go different moving forward. Be cautious and be patient in trading – remember impatient traders buys the patient traders.
TODAYS NEWS THAT MIGHT AFFECT YOUR TECHNICAL TRADES.
- Most banks are on holiday and we expect very little volatility.
- 9.45am – China will release their CAIXIN Services PMI – expect volatility.
- 2.00pm – Germany will release Industrial production – little or no movement.
The market will be closed from midnight as both US and Canada goes for holiday. Be cautious and always have good money management in place at all times.
High Risk Investment Warning:
Please note that Forex and other leveraged trading involves significant risk of loss, It is not suitable for all traders and you should make sure you understand the risks involved, it is recommended that you seek an independent advice, if necessary.